Maxeon Solar Technologies (FRA:5QJ1) 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
Maxeon Solar Technologies had a gross margin of -37.93% for the quarter that ended in Jun. 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.
Maxeon Solar Technologies Gross Margin % Related Terms
Maxeon Solar Technologies 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.
FRA:5QJ1 vs APWL, GSLR, SUNE: Gross Margin % Comparison
For the Solar subindustry, Maxeon Solar Technologies'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.
Maxeon Solar Technologies Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Maxeon Solar Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Maxeon Solar Technologies'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.
Maxeon Solar Technologies (FRA:5QJ1) has a Gross Margin % of -37.93% as of Jun. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Maxeon Solar Technologies and its competitors. According to the industry distribution chart, Maxeon Solar Technologies ranks #1004 out of 1009 companies in the Semiconductors industry, placing it in the top 99.5%.
Is Maxeon Solar Technologies' Gross Margin % too high?
Maxeon Solar Technologies' current Gross Margin % is -37.93%. Based on the distribution chart, Maxeon Solar Technologies ranks #1004 out of 1009 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Maxeon Solar Technologies has a GF Score™ of 26/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Maxeon Solar Technologies' Gross Margin % compare to APWL and GSLR?
According to the Semiconductors industry distribution chart, Maxeon Solar Technologies ranks #1004 out of 1009 companies for Gross Margin %. This places Maxeon Solar Technologies in the lower half of its industry. The industry median Gross Margin % is 29.61. 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 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. 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 Maxeon Solar Technologies and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Maxeon Solar Technologies's current Gross Margin % is -37.93%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Maxeon Solar Technologies stock overvalued right now?
Based on GuruFocus' analysis, Maxeon Solar Technologies (FRA:5QJ1) is currently considered Possible Value Trap. The stock's GF Value™ is €2.46, compared to a current price of €0.24 — trading 90.4% below its estimated fair value. The current Gross Margin % is -37.93%. Maxeon Solar Technologies' overall GF Score™ is 26/100 with 9 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 Maxeon Solar Technologies (FRA:5QJ1), the current Gross Margin % is -37.93% as of Jun. 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 Maxeon Solar Technologies (FRA:5QJ1) Overvalued in 2026?
Based on GuruFocus' analysis, Maxeon Solar Technologies stock appears to be undervalued.
The current stock price of €0.24 is trading 90.4% below its estimated GF Value™ of €2.46.
GuruFocus considers Maxeon Solar Technologies to be Possible Value Trap.
Key valuation signals for FRA:5QJ1:
Gross Margin %: -37.93%
GF Value™: €2.46 vs. price of €0.24 (90.4% below fair value)
No single metric tells the full story. See the FRA:5QJ1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Maxeon Solar Technologies Ltd is engaged in the manufacturing and marketing of premium solar technology. It owns and operates solar cell and panel manufacturing facilities located in Malaysia, Mexico, and the Philippines. The company's primary products are the Maxeon line of interdigitated back contact (IBC) solar cells and panels, and the Performance line (formerly, P-Series) of shingled solar cells and panels. the Maxeon line of solar panels are the highest-efficiency solar panels on the market with an aesthetically pleasing design, and the Performance line of solar panels offers a high-value and cost-effective solution. It is targeted at residential and small-scale commercial customers across the globe. The company derives its revenue from the United States, Italy, and Rest of world.
26GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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