SemiLEDsLEDS -6.04%51 Gross Margin % is 0.56% as of Feb. 2026, which is 95% below its 10-year median of 12.25. GuruFocus rates LEDS with a GF Score™ of 51/100 and a GF Value™ of $6.01 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,011 Semiconductors companies, SemiLEDs ranks worse than 92.19% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SemiLEDs's Gross Profit for the
three
months ended in Feb. 2026 was $0.01 Mil. SemiLEDs's Revenue for the
three
months ended in Feb. 2026 was $1.06 Mil. Therefore, SemiLEDs's Gross Margin % for the quarter that ended in Feb. 2026 was 0.56%.
Warning Sign:
SemiLEDs Corp gross margin has been in long-term decline. The average rate of decline per year is -20.5%.
The historical rank and industry rank for SemiLEDs's Gross Margin % or its related term are showing as below:
LEDS'
s Gross Margin % Range Over the Past 10 Years
Min: -48.7 Med: 12.25 Max: 26.2
Current: 3.45
During the past 13 years, the highestGross Margin % of SemiLEDs was 26.20%. The lowest was -48.70%. And the median was 12.25%.
LEDS's Gross Margin % is ranked worse than 92.19% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs LEDS: 3.45
SemiLEDs had a gross margin of 0.56% for the quarter that ended in Feb. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SemiLEDs was -20.50% per year.
SemiLEDs (NAS:LEDS) 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
SemiLEDs had a gross margin of 0.56% for the quarter that ended in Feb. 2026 => 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.
SemiLEDs Gross Margin % Related Terms
SemiLEDs Gross Margin % Historical Data
* Premium members only.
The historical data trend for SemiLEDs'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.
LEDS vs PRSO, GUER, MOBX: Gross Margin % Comparison
For the Semiconductors subindustry, SemiLEDs'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.
SemiLEDs Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SemiLEDs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SemiLEDs'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.
SemiLEDs (LEDS) has a Gross Margin % of 0.56% as of Feb. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SemiLEDs and its competitors. This is 95% below median its historical median of 12.25. According to the industry distribution chart, SemiLEDs ranks #932 out of 1011 companies in the Semiconductors industry, placing it in the top 92.2%.
Is SemiLEDs' Gross Margin % too high?
SemiLEDs' current Gross Margin % of 0.56% is 95% below median its 10-year median of 12.25. The Semiconductors industry median Gross Margin % is 29.61. SemiLEDs' value of 0.56% is 98.1% below this industry median. Based on the distribution chart, SemiLEDs ranks #932 out of 1011 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, SemiLEDs has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SemiLEDs' Gross Margin % compare to PRSO and GUER?
According to the Semiconductors industry distribution chart, SemiLEDs ranks #932 out of 1011 companies for Gross Margin %. This places SemiLEDs in the lower half of its industry. The industry median Gross Margin % is 29.61. SemiLEDs' value of 0.56% is 98.1% below this benchmark. While the company's 10-year median is 12.25 vs. the industry median of 29.61, SemiLEDs 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 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. SemiLEDs's current Gross Margin % of 0.56% is 98.1% 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 SemiLEDs 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. SemiLEDs's current Gross Margin % is 0.56%, which is 95% below median its own 10-year median of 12.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SemiLEDs stock overvalued right now?
Based on GuruFocus' analysis, SemiLEDs (LEDS) is currently considered Possible Value Trap. The stock's GF Value™ is $6.01, compared to a current price of $1.72 — trading 71.4% below its estimated fair value. The current Gross Margin % is 0.56%, which is 95% below median its 10-year median of 12.25 and 98.1% below the Semiconductors industry median of 29.61. SemiLEDs' overall GF Score™ is 51/100 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 SemiLEDs (LEDS), the current Gross Margin % is 0.56% as of Feb. 2026. 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 SemiLEDs (LEDS) Overvalued in 2026?
Based on GuruFocus' analysis, SemiLEDs stock appears to be undervalued.
The current stock price of $1.72 is trading 71.4% below its estimated GF Value™ of $6.01.
GuruFocus considers SemiLEDs to be Possible Value Trap.
Key valuation signals for LEDS:
Gross Margin %: 0.56% (95% below median its 10-year median of 12.25)
GF Value™: $6.01 vs. price of $1.72 (71.4% below fair value)
Industry Position: 98.1% below the Semiconductors median (#932 of 1011)
No single metric tells the full story. See the LEDS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SemiLEDs Corp develops, manufactures, and sells light-emitting diode chips and LED components. The company's products include LED Chips, LED Components, and Lighting Products. Its products are used for general lighting applications, including street lights and commercial, industrial, system, and residential lighting; specialty industrial applications, such as ultraviolet, or Ultraviolet, curing of polymers, LED light therapy in medical/cosmetic applications, counterfeit detection, LED lighting for horticulture applications, architectural lighting and entertainment lighting. Substantial revenue is generated from the sale of LED components products. Geographically, it derives a majority of its revenue from Japan.
51GF Score
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