X-FAB Silicon Foundries SELTS:0ROZ -1.20%75 Gross Margin % is 15.70% as of Mar. 2026, which is 21% below its 10-year median of 19.94. GuruFocus rates LTS:0ROZ with a GF Score™ of 75/100 and a GF Value™ of €5.88 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,009 Semiconductors companies, X-FAB Silicon Foundries SE ranks worse than 68.38% on this metric.
X-FAB Silicon Foundries SE (LTS:0ROZ) 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
X-FAB Silicon Foundries SE had a gross margin of 15.70% for the quarter that ended in Mar. 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.
X-FAB Silicon Foundries SE Gross Margin % Related Terms
X-FAB Silicon Foundries SE 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.
LTS:0ROZ vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, X-FAB Silicon Foundries SE'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.
X-FAB Silicon Foundries SE Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, X-FAB Silicon Foundries SE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where X-FAB Silicon Foundries SE'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.
X-FAB Silicon Foundries SE (LTS:0ROZ) has a Gross Margin % of 15.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on X-FAB Silicon Foundries SE and its competitors. This is 21% below median its historical median of 19.94. Over the past decade, X-FAB Silicon Foundries SE's Gross Margin % has ranged from 5.39 to 26.20. According to the industry distribution chart, X-FAB Silicon Foundries SE ranks #690 out of 1009 companies in the Semiconductors industry, placing it in the top 68.4%.
Is X-FAB Silicon Foundries SE's Gross Margin % too high?
X-FAB Silicon Foundries SE's current Gross Margin % of 15.70% is 21% below median its 10-year median of 19.94. Over the past 10 years, this metric has ranged from a low of 5.39 to a high of 26.20. The Semiconductors industry median Gross Margin % is 29.61. X-FAB Silicon Foundries SE's value of 15.70% is 47% below this industry median. Based on the distribution chart, X-FAB Silicon Foundries SE ranks #690 out of 1009 companies in the Semiconductors industry, which is below the industry midpoint. Overall, X-FAB Silicon Foundries SE has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does X-FAB Silicon Foundries SE's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, X-FAB Silicon Foundries SE ranks #690 out of 1009 companies for Gross Margin %. This places X-FAB Silicon Foundries SE in the lower half of its industry. The industry median Gross Margin % is 29.61. X-FAB Silicon Foundries SE's value of 15.70% is 47% below this benchmark. Historically, X-FAB Silicon Foundries SE's own Gross Margin % has ranged from 5.39 to 26.20 over the past decade. While the company's 10-year median is 19.94 vs. the industry median of 29.61, X-FAB Silicon Foundries SE 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 1,009 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. X-FAB Silicon Foundries SE's current Gross Margin % of 15.70% is 47% 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 X-FAB Silicon Foundries SE 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. X-FAB Silicon Foundries SE's current Gross Margin % is 15.70%, which is 21% below median its own 10-year median of 19.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is X-FAB Silicon Foundries SE stock overvalued right now?
Based on GuruFocus' analysis, X-FAB Silicon Foundries SE (LTS:0ROZ) is currently considered Significantly Overvalued. The stock's GF Value™ is €5.88, compared to a current price of €8.19 — trading 39.4% above its estimated fair value. The current Gross Margin % is 15.70%, which is 21% below median its 10-year median of 19.94 and 47% below the Semiconductors industry median of 29.61. X-FAB Silicon Foundries SE's overall GF Score™ is 75/100 with 6 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 X-FAB Silicon Foundries SE (LTS:0ROZ), the current Gross Margin % is 15.70% as of Mar. 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 X-FAB Silicon Foundries SE (LTS:0ROZ) Overvalued in 2026?
Based on GuruFocus' analysis, X-FAB Silicon Foundries SE stock appears to be overvalued.
The current stock price of €8.19 is trading 39.4% above its estimated GF Value™ of €5.88.
GuruFocus considers X-FAB Silicon Foundries SE to be Significantly Overvalued.
Key valuation signals for LTS:0ROZ:
Gross Margin %: 15.70% (21% below median its 10-year median of 19.94)
GF Value™: €5.88 vs. price of €8.19 (39.4% above fair value)
Industry Position: 47% below the Semiconductors median (#690 of 1009)
No single metric tells the full story. See the LTS:0ROZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
X-FAB Silicon Foundries SE is a specialty foundry providing a comprehensive set of specialty technologies and design IP to enable its customers to develop semiconductor products that are manufactured at X-FAB's six wafer fabs located in Malaysia, Germany, France, and the United States. With its expertise in analog/mixed-signal, microsystems, photonics, and wide bandgap technologies, X-FAB is the development and manufacturing partner for its customers, mainly serving the automotive, industrial, and medical end markets. The Group manages its CMOS, SiC, and MEMS operations as one single operating segment. Geographically, the company operates in Europe and Asia regions, and the majority of its revenue is generated from the Europe region.
75GF Score
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