Apogee Optocom CoTPE:6426 +1.05%59 Gross Margin % is 35.98% as of Dec. 2025, which is 8% below its 10-year median of 39.04. GuruFocus rates TPE:6426 with a GF Score™ of 59/100 and a GF Value™ of NT$88.78 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,454 Hardware companies, Apogee Optocom Co ranks better than 59.82% on this metric.
Apogee Optocom Co Ltd gross margin has been in long-term decline. The average rate of decline per year is -36.2%.
The historical rank and industry rank for Apogee Optocom Co's Gross Margin % or its related term are showing as below:
TPE:6426'
s Gross Margin % Range Over the Past 10 Years
Min: 0.82 Med: 39.04 Max: 53.2
Current: 29.91
During the past 13 years, the highestGross Margin % of Apogee Optocom Co was 53.20%. The lowest was 0.82%. And the median was 39.04%.
TPE:6426's Gross Margin % is ranked better than 59.82% of 2454
companies
in the Hardware industry
Industry Median: 24.53
vs TPE:6426: 29.91
Apogee Optocom Co had a gross margin of 35.98% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Apogee Optocom Co was -36.20% per year.
Apogee Optocom Co (TPE:6426) 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
Apogee Optocom Co had a gross margin of 35.98% 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.
Apogee Optocom Co Gross Margin % Related Terms
Apogee Optocom Co Gross Margin % Historical Data
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The historical data trend for Apogee Optocom Co'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:6426 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Apogee Optocom 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.
Apogee Optocom Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Apogee Optocom Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Apogee Optocom 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.
Apogee Optocom Co (TPE:6426) has a Gross Margin % of 35.98% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Apogee Optocom Co and its competitors. This is near median its historical median of 39.04. Over the past decade, Apogee Optocom Co's Gross Margin % has ranged from 0.82 to 53.20. According to the industry distribution chart, Apogee Optocom Co ranks #986 out of 2454 companies in the Hardware industry, placing it in the top 40.2%.
Is Apogee Optocom Co's Gross Margin % too high?
Apogee Optocom Co's current Gross Margin % of 35.98% is near median its 10-year median of 39.04. Over the past 10 years, this metric has ranged from a low of 0.82 to a high of 53.20. The Hardware industry median Gross Margin % is 24.53. Apogee Optocom Co's value of 35.98% is 46.7% above this industry median. Based on the distribution chart, Apogee Optocom Co ranks #986 out of 2454 companies in the Hardware industry, which is above the industry midpoint. Overall, Apogee Optocom Co has a GF Score™ of 59/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Apogee Optocom Co's Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Apogee Optocom Co ranks #986 out of 2454 companies for Gross Margin %. This puts Apogee Optocom Co in the upper half of its industry. The industry median Gross Margin % is 24.53. Apogee Optocom Co's value of 35.98% is 46.7% above this benchmark. Historically, Apogee Optocom Co's own Gross Margin % has ranged from 0.82 to 53.20 over the past decade. While the company's 10-year median is 39.04 vs. the industry median of 24.53, Apogee Optocom 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 24.53, based on 2,454 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. Apogee Optocom Co's current Gross Margin % of 35.98% is 46.7% 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 Apogee Optocom Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apogee Optocom Co's current Gross Margin % is 35.98%, which is near median its own 10-year median of 39.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apogee Optocom Co stock overvalued right now?
Based on GuruFocus' analysis, Apogee Optocom Co (TPE:6426) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$88.78, compared to a current price of NT$192.00 — trading 116.3% above its estimated fair value. The current Gross Margin % is 35.98%, which is near median its 10-year median of 39.04 and 46.7% above the Hardware industry median of 24.53. Apogee Optocom Co's overall GF Score™ is 59/100 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 Apogee Optocom Co (TPE:6426), the current Gross Margin % is 35.98% 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 Apogee Optocom Co (TPE:6426) Overvalued in 2026?
Based on GuruFocus' analysis, Apogee Optocom Co stock appears to be overvalued.
The current stock price of NT$192.00 is trading 116.3% above its estimated GF Value™ of NT$88.78.
GuruFocus considers Apogee Optocom Co to be Significantly Overvalued.
Key valuation signals for TPE:6426:
Gross Margin %: 35.98% (near median its 10-year median of 39.04)
GF Value™: NT$88.78 vs. price of NT$192.00 (116.3% above fair value)
Industry Position: 46.7% above the Hardware median (#986 of 2454)
No single metric tells the full story. See the TPE:6426 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apogee Optocom Co Ltd is a communication component manufacturer based in Taiwan. Its product offerings mainly include thin-film filters for active optical communication components (E-PON, G-PON) and thin-film filters for passive optical communication components (CWDM, DWDM). Additionally, Group is involved in optical and functional thin film processing, and offers optical filters for 1.6T Gbps optical communication modules, co-packaged optics coating applications, and bandpass filters for mid-infrared (MIR) sensors. It also offers measurement instruments like white light interferometers, spectrometers, and mid and far-infrared spectrometers. The Group's reportable operating segments are: the parent company, which derives key revenue, and Subsidiary. Geographically, its key market is China.
59GF Score
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