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DrayTekTPE:6216 +0.93%72 Gross Margin % is 42.08% as of Mar. 2026, which is 14% below its 10-year median of 48.82. GuruFocus rates TPE:6216 with a GF Score™ of 72/100 and a GF Value™ of NT$23.90 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,452 Hardware companies, DrayTek ranks better than 81.97% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. DrayTek's Gross Profit for the
three
months ended in Mar. 2026 was NT$57.6 Mil. DrayTek's Revenue for the
three
months ended in Mar. 2026 was NT$136.9 Mil. Therefore, DrayTek's Gross Margin % for the quarter that ended in Mar. 2026 was 42.08%.
Warning Sign:
DrayTek Corp gross margin has been in long-term decline. The average rate of decline per year is -1.4%.
The historical rank and industry rank for DrayTek's Gross Margin % or its related term are showing as below:
TPE:6216'
s Gross Margin % Range Over the Past 10 Years
Min: 44.38 Med: 48.82 Max: 51.85
Current: 44.38
During the past 13 years, the highestGross Margin % of DrayTek was 51.85%. The lowest was 44.38%. And the median was 48.82%.
TPE:6216's Gross Margin % is ranked better than 81.97% of 2452
companies
in the Hardware industry
Industry Median: 24.51
vs TPE:6216: 44.38
DrayTek had a gross margin of 42.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for DrayTek was -1.40% per year.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
DrayTek had a gross margin of 42.08% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
DrayTek Gross Margin % Related Terms
DrayTek Gross Margin % Historical Data
* Premium members only.
The historical data trend for DrayTek's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TPE:6216 vs CSCO, MSI, HPE: Gross Margin % Comparison
For the Communication Equipment subindustry, DrayTek's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DrayTek Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, DrayTek's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DrayTek's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
DrayTek (TPE:6216) has a Gross Margin % of 42.08% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on DrayTek and its competitors. This is 14% below median its historical median of 48.82. Over the past decade, DrayTek's Gross Margin % has ranged from 44.38 to 51.85. According to the industry distribution chart, DrayTek ranks #442 out of 2452 companies in the Hardware industry, placing it in the top 18%.
Is DrayTek's Gross Margin % too high?
DrayTek's current Gross Margin % of 42.08% is 14% below median its 10-year median of 48.82. Over the past 10 years, this metric has ranged from a low of 44.38 to a high of 51.85. The Hardware industry median Gross Margin % is 24.51. DrayTek's value of 42.08% is 71.7% above this industry median. Based on the distribution chart, DrayTek ranks #442 out of 2452 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, DrayTek has a GF Score™ of 72/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does DrayTek's Gross Margin % compare to CSCO and MSI?
According to the Hardware industry distribution chart, DrayTek ranks #442 out of 2452 companies for Gross Margin %. This places DrayTek in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.51. DrayTek's value of 42.08% is 71.7% above this benchmark. Historically, DrayTek's own Gross Margin % has ranged from 44.38 to 51.85 over the past decade. While the company's 10-year median is 48.82 vs. the industry median of 24.51, DrayTek has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.51, based on 2,452 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. DrayTek's current Gross Margin % of 42.08% is 71.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on DrayTek and its competitors. For the Hardware industry, the median Gross Margin % is 24.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. DrayTek's current Gross Margin % is 42.08%, which is 14% below median its own 10-year median of 48.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is DrayTek stock overvalued right now?
Based on GuruFocus' analysis, DrayTek (TPE:6216) is currently considered Fairly Valued. The stock's GF Value™ is NT$23.90, compared to a current price of NT$21.75 — trading 9% below its estimated fair value. The current Gross Margin % is 42.08%, which is 14% below median its 10-year median of 48.82 and 71.7% above the Hardware industry median of 24.51. DrayTek's overall GF Score™ is 72/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For DrayTek (TPE:6216), the current Gross Margin % is 42.08% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is DrayTek (TPE:6216) Overvalued in 2026?
Based on GuruFocus' analysis, DrayTek stock appears to be undervalued.
The current stock price of NT$21.75 is trading 9% below its estimated GF Value™ of NT$23.90.
GuruFocus considers DrayTek to be Fairly Valued.
Key valuation signals for TPE:6216:
Gross Margin %: 42.08% (14% below median its 10-year median of 48.82)
GF Value™: NT$23.90 vs. price of NT$21.75 (9% below fair value)
Industry Position: 71.7% above the Hardware median (#442 of 2452)
No single metric tells the full story. See the TPE:6216 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
DrayTek Corp is engaged in the manufacturing and sales of wired and wireless communication mechanical equipment, telecommunication apparatus, and information software services. The Company is a provider of networking and management solutions, with a portfolio that has evolved from ISDN, Broadband and VDSL to 10G / Multi-Gig networking, Wi-Fi 7, fiber access (FTTx / XGS-PON) and 4G / 5G connectivity, delivering integrated solutions with centralized management and built-in security. DrayTek provides a platform combining connectivity, resilience, security and management, with Switch Stacking, LAG, multi-WAN and the VigorShield security framework. The Company operates in Europe, Asia and other regions, with Europe generating the maximum revenue.
72GF Score
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