Arima CommunicationsTPE:8101 -3.38%62 Gross Margin % is 17.29% as of Dec. 2025, which is 490% above its 10-year median of 2.93. GuruFocus rates TPE:8101 with a GF Score™ of 62/100 and a GF Value™ of NT$15.11 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,450 Hardware companies, Arima Communications ranks worse than 64% 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
Arima Communications had a gross margin of 17.29% 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.
Arima Communications Gross Margin % Related Terms
Arima Communications Gross Margin % Historical Data
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The historical data trend for Arima Communications'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:8101 vs CSCO, CIEN, MSI: Gross Margin % Comparison
For the Communication Equipment subindustry, Arima Communications'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.
Arima Communications Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Arima Communications's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Arima Communications'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.
Arima Communications (TPE:8101) has a Gross Margin % of 17.29% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Arima Communications and its competitors. This is 490% above median its historical median of 2.93. According to the industry distribution chart, Arima Communications ranks #1568 out of 2450 companies in the Hardware industry, placing it in the top 64%.
Is Arima Communications' Gross Margin % too high?
Arima Communications' current Gross Margin % of 17.29% is 490% above median its 10-year median of 2.93. The Hardware industry median Gross Margin % is 24.50. Arima Communications' value of 17.29% is 29.4% below this industry median. Based on the distribution chart, Arima Communications ranks #1568 out of 2450 companies in the Hardware industry, which is below the industry midpoint. Overall, Arima Communications has a GF Score™ of 62/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arima Communications' Gross Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Arima Communications ranks #1568 out of 2450 companies for Gross Margin %. This places Arima Communications in the lower half of its industry. The industry median Gross Margin % is 24.50. Arima Communications' value of 17.29% is 29.4% below this benchmark. While the company's 10-year median is 2.93 vs. the industry median of 24.50, Arima Communications 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 24.50, based on 2,450 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. Arima Communications's current Gross Margin % of 17.29% is 29.4% 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 Arima Communications 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. Arima Communications's current Gross Margin % is 17.29%, which is 490% above median its own 10-year median of 2.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arima Communications stock overvalued right now?
Based on GuruFocus' analysis, Arima Communications (TPE:8101) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$15.11, compared to a current price of NT$12.85 — trading 15% below its estimated fair value. The current Gross Margin % is 17.29%, which is 490% above median its 10-year median of 2.93 and 29.4% below the Hardware industry median of 24.50. Arima Communications' overall GF Score™ is 62/100 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 Arima Communications (TPE:8101), the current Gross Margin % is 17.29% 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 Arima Communications (TPE:8101) Overvalued in 2026?
Based on GuruFocus' analysis, Arima Communications stock appears to be undervalued.
The current stock price of NT$12.85 is trading 15% below its estimated GF Value™ of NT$15.11.
GuruFocus considers Arima Communications to be Modestly Undervalued.
Key valuation signals for TPE:8101:
Gross Margin %: 17.29% (490% above median its 10-year median of 2.93)
GF Value™: NT$15.11 vs. price of NT$12.85 (15% below fair value)
Industry Position: 29.4% below the Hardware median (#1568 of 2450)
No single metric tells the full story. See the TPE:8101 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arima Communications Corp is mainly engaged in the manufacturing, processing and sales of mobile phones and electronic components and solar products and equipment. The reportable segment of the company is the mobile phone business group, mainly engaged in the manufacturing and sales of various mobile phone products. Geographically, the maximum revenue is generated from Asia, followed by America and Europe.
62GF Score
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