Compal Broadband NetworksTPE:6674 +0.89%64 Gross Margin % is 34.64% as of Dec. 2025, which is 149% above its 10-year median of 13.90. GuruFocus rates TPE:6674 with a GF Score™ of 64/100 and a GF Value™ of NT$12.57 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,449 Hardware companies, Compal Broadband Networks ranks better than 69.09% on this metric.
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
Compal Broadband Networks had a gross margin of 34.64% 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.
Compal Broadband Networks Gross Margin % Related Terms
Compal Broadband Networks 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:6674 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Compal Broadband Networks'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.
Compal Broadband Networks Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Compal Broadband Networks's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Compal Broadband Networks'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.
Compal Broadband Networks (TPE:6674) has a Gross Margin % of 34.64% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Compal Broadband Networks and its competitors. This is 149% above median its historical median of 13.90. Over the past decade, Compal Broadband Networks' Gross Margin % has ranged from 7.12 to 34.63. According to the industry distribution chart, Compal Broadband Networks ranks #757 out of 2449 companies in the Hardware industry, placing it in the top 30.9%.
Is Compal Broadband Networks' Gross Margin % too high?
Compal Broadband Networks' current Gross Margin % of 34.64% is 149% above median its 10-year median of 13.90. Over the past 10 years, this metric has ranged from a low of 7.12 to a high of 34.63. The Hardware industry median Gross Margin % is 24.50. Compal Broadband Networks' value of 34.64% is 41.4% above this industry median. Based on the distribution chart, Compal Broadband Networks ranks #757 out of 2449 companies in the Hardware industry, which is above the industry midpoint. Overall, Compal Broadband Networks has a GF Score™ of 64/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Compal Broadband Networks' Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Compal Broadband Networks ranks #757 out of 2449 companies for Gross Margin %. This puts Compal Broadband Networks in the upper half of its industry. The industry median Gross Margin % is 24.50. Compal Broadband Networks' value of 34.64% is 41.4% above this benchmark. Historically, Compal Broadband Networks' own Gross Margin % has ranged from 7.12 to 34.63 over the past decade. While the company's 10-year median is 13.90 vs. the industry median of 24.50, Compal Broadband Networks 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 24.50, based on 2,449 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. Compal Broadband Networks's current Gross Margin % of 34.64% is 41.4% 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 Compal Broadband Networks and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compal Broadband Networks's current Gross Margin % is 34.64%, which is 149% above median its own 10-year median of 13.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compal Broadband Networks stock overvalued right now?
Based on GuruFocus' analysis, Compal Broadband Networks (TPE:6674) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$12.57, compared to a current price of NT$17.00 — trading 35.2% above its estimated fair value. The current Gross Margin % is 34.64%, which is 149% above median its 10-year median of 13.90 and 41.4% above the Hardware industry median of 24.50. Compal Broadband Networks' overall GF Score™ is 64/100 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 Compal Broadband Networks (TPE:6674), the current Gross Margin % is 34.64% 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 Compal Broadband Networks (TPE:6674) Overvalued in 2026?
Based on GuruFocus' analysis, Compal Broadband Networks stock appears to be overvalued.
The current stock price of NT$17.00 is trading 35.2% above its estimated GF Value™ of NT$12.57.
GuruFocus considers Compal Broadband Networks to be Significantly Overvalued.
Key valuation signals for TPE:6674:
Gross Margin %: 34.64% (149% above median its 10-year median of 13.90)
GF Value™: NT$12.57 vs. price of NT$17.00 (35.2% above fair value)
Industry Position: 41.4% above the Hardware median (#757 of 2449)
No single metric tells the full story. See the TPE:6674 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compal Broadband Networks Inc is a Taiwan-based company engaged in the research, development, and sales of communication products such as intelligent gateways, digital set-top boxes, and wireless broadband share devices. It operates geographically across Taiwan, Belgium, the Netherlands, Brazil, and other Countries.
64GF Score
Get the complete analysis for TPE:6674
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TPE:6674 has been successfully added to your 
