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Para Light Electronics CoTPE:6226 -9.98%50 Gross Margin % is 28.70% as of Dec. 2025, which is 1% below its 10-year median of 29.04. GuruFocus rates TPE:6226 with a GF Score™ of 50/100 and a GF Value™ of NT$7.55 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,452 Hardware companies, Para Light Electronics Co ranks better than 57.14% on this metric.
Para Light Electronics Co (TPE:6226) Gross Margin % Explanation
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
Para Light Electronics Co had a gross margin of 28.70% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Para Light Electronics Co Gross Margin % Related Terms
Para Light Electronics Co Gross Margin % Historical Data
* 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:6226 vs APH, GLW, TEL: Gross Margin % Comparison
For the Electronic Components subindustry, Para Light Electronics Co'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.
Para Light Electronics Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Para Light Electronics Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Para Light Electronics Co'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.
Para Light Electronics Co (TPE:6226) has a Gross Margin % of 28.70% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Para Light Electronics Co and its competitors. This is near median its historical median of 29.04. Over the past decade, Para Light Electronics Co's Gross Margin % has ranged from 24.12 to 32.76. According to the industry distribution chart, Para Light Electronics Co ranks #1051 out of 2452 companies in the Hardware industry, placing it in the top 42.9%.
Is Para Light Electronics Co's Gross Margin % too high?
Para Light Electronics Co's current Gross Margin % of 28.70% is near median its 10-year median of 29.04. Over the past 10 years, this metric has ranged from a low of 24.12 to a high of 32.76. The Hardware industry median Gross Margin % is 24.49. Para Light Electronics Co's value of 28.70% is 17.2% above this industry median. Based on the distribution chart, Para Light Electronics Co ranks #1051 out of 2452 companies in the Hardware industry, which is above the industry midpoint. Overall, Para Light Electronics Co has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Para Light Electronics Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Para Light Electronics Co ranks #1051 out of 2452 companies for Gross Margin %. This puts Para Light Electronics Co in the upper half of its industry. The industry median Gross Margin % is 24.49. Para Light Electronics Co's value of 28.70% is 17.2% above this benchmark. Historically, Para Light Electronics Co's own Gross Margin % has ranged from 24.12 to 32.76 over the past decade. While the company's 10-year median is 29.04 vs. the industry median of 24.49, Para Light Electronics Co 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 24.49, 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. Para Light Electronics Co's current Gross Margin % of 28.70% is 17.2% 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 Para Light Electronics Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Para Light Electronics Co's current Gross Margin % is 28.70%, which is near median its own 10-year median of 29.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Para Light Electronics Co stock overvalued right now?
Based on GuruFocus' analysis, Para Light Electronics Co (TPE:6226) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$7.55, compared to a current price of NT$20.30 — trading 168.9% above its estimated fair value. The current Gross Margin % is 28.70%, which is near median its 10-year median of 29.04 and 17.2% above the Hardware industry median of 24.49. Para Light Electronics Co's overall GF Score™ is 50/100 with 4 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 Para Light Electronics Co (TPE:6226), the current Gross Margin % is 28.70% as of Dec. 2025. 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 Para Light Electronics Co (TPE:6226) Overvalued in 2026?
Based on GuruFocus' analysis, Para Light Electronics Co stock appears to be overvalued.
The current stock price of NT$20.30 is trading 168.9% above its estimated GF Value™ of NT$7.55.
GuruFocus considers Para Light Electronics Co to be Significantly Overvalued.
Key valuation signals for TPE:6226:
Gross Margin %: 28.70% (near median its 10-year median of 29.04)
GF Value™: NT$7.55 vs. price of NT$20.30 (168.9% above fair value)
Industry Position: 17.2% above the Hardware median (#1051 of 2452)
No single metric tells the full story. See the TPE:6226 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Para Light Electronics Co Ltd mainly engage in the manufacture, processing and sale of various LEDs and LED displays. The company's products are Visible LED, SMD LED, UV LED, PLCC LED, IR LED, Display LED, Optical Sensor, Lamp LED, Power Semiconductor, Circuit Board Indicator, Automotive LED, Infrared. The company has three segments: Segment A produces and sells LEDs, materials, and LED-related optoelectronic products; Segment B develops and manages real estate; and Segment C engages in general investment. The company generates majority of revenue from Segment A. It has presence in Asia, America, Europe, and others.
50GF Score
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