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
Nidec Chaun-Choung Technology had a gross margin of 17.00% for the quarter that ended in Dec. 2025 => No sustainable 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.
Nidec Chaun-Choung Technology Gross Margin % Related Terms
Nidec Chaun-Choung Technology 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.
For the Electronic Components subindustry, Nidec Chaun-Choung Technology'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.
Nidec Chaun-Choung Technology Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Nidec Chaun-Choung Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Nidec Chaun-Choung Technology'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.
Nidec Chaun-Choung Technology (TPE:6230) has a Gross Margin % of 17.00% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Nidec Chaun-Choung Technology and its competitors. This is 15% below median its historical median of 19.92. Over the past decade, Nidec Chaun-Choung Technology's Gross Margin % has ranged from 15.23 to 26.16. According to the industry distribution chart, Nidec Chaun-Choung Technology ranks #1798 out of 2453 companies in the Hardware industry, placing it in the top 73.3%.
Is Nidec Chaun-Choung Technology's Gross Margin % too high?
Nidec Chaun-Choung Technology's current Gross Margin % of 17.00% is 15% below median its 10-year median of 19.92. Over the past 10 years, this metric has ranged from a low of 15.23 to a high of 26.16. The Hardware industry median Gross Margin % is 24.52. Nidec Chaun-Choung Technology's value of 17.00% is 30.7% below this industry median. Based on the distribution chart, Nidec Chaun-Choung Technology ranks #1798 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, Nidec Chaun-Choung Technology has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nidec Chaun-Choung Technology's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Nidec Chaun-Choung Technology ranks #1798 out of 2453 companies for Gross Margin %. This places Nidec Chaun-Choung Technology in the lower half of its industry. The industry median Gross Margin % is 24.52. Nidec Chaun-Choung Technology's value of 17.00% is 30.7% below this benchmark. Historically, Nidec Chaun-Choung Technology's own Gross Margin % has ranged from 15.23 to 26.16 over the past decade. While the company's 10-year median is 19.92 vs. the industry median of 24.52, Nidec Chaun-Choung Technology has consistently been below 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 24.52, based on 2,453 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. Nidec Chaun-Choung Technology's current Gross Margin % of 17.00% is 30.7% below 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 Nidec Chaun-Choung Technology and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nidec Chaun-Choung Technology's current Gross Margin % is 17.00%, which is 15% below median its own 10-year median of 19.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nidec Chaun-Choung Technology stock overvalued right now?
Based on GuruFocus' analysis, Nidec Chaun-Choung Technology (TPE:6230) is currently considered Fairly Valued. The stock's GF Value™ is NT$135.00, compared to a current price of NT$127.50 — trading 5.6% below its estimated fair value. The current Gross Margin % is 17.00%, which is 15% below median its 10-year median of 19.92 and 30.7% below the Hardware industry median of 24.52. Nidec Chaun-Choung Technology's overall GF Score™ is 75/100 with 2 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 Nidec Chaun-Choung Technology (TPE:6230), the current Gross Margin % is 17.00% 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 Nidec Chaun-Choung Technology (TPE:6230) Overvalued in 2026?
Based on GuruFocus' analysis, Nidec Chaun-Choung Technology stock appears to be undervalued.
The current stock price of NT$127.50 is trading 5.6% below its estimated GF Value™ of NT$135.00.
GuruFocus considers Nidec Chaun-Choung Technology to be Fairly Valued.
Key valuation signals for TPE:6230:
Gross Margin %: 17.00% (15% below median its 10-year median of 19.92)
GF Value™: NT$135.00 vs. price of NT$127.50 (5.6% below fair value)
Industry Position: 30.7% below the Hardware median (#1798 of 2453)
No single metric tells the full story. See the TPE:6230 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nidec Chaun-Choung Technology Business Description
Nidec Chaun-Choung Technology Corp is engaged in the manufacturing and merchandising of vapor chambers; heat pipes and thermal modules. Geographically, it derives a majority of its revenue from Mainland China and also has a presence in Singapore; Taiwan; Malaysia and other countries. It generates maximum revenue from a thermal module.
75GF Score
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