CEVAMEX:CEVA 54 Gross Margin % is 86.20% as of Mar. 2026, which is 3% below its 10-year median of 88.85. GuruFocus rates MEX:CEVA with a GF Score™ of 54/100 and a GF Value™ of MXN441.64 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,009 Semiconductors companies, CEVA ranks better than 98.12% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. CEVA's Gross Profit for the
three
months ended in Mar. 2026 was MXN420 Mil. CEVA's Revenue for the
three
months ended in Mar. 2026 was MXN487 Mil. Therefore, CEVA's Gross Margin % for the quarter that ended in Mar. 2026 was 86.20%.
The historical rank and industry rank for CEVA's Gross Margin % or its related term are showing as below:
MEX:CEVA'
s Gross Margin % Range Over the Past 10 Years
Min: 87.08 Med: 88.85 Max: 92.05
Current: 87.19
During the past 13 years, the highestGross Margin % of CEVA was 92.05%. The lowest was 87.08%. And the median was 88.85%.
MEX:CEVA's Gross Margin % is ranked better than 98.12% of 1009
companies
in the Semiconductors industry
Industry Median: 29.61
vs MEX:CEVA: 87.19
CEVA had a gross margin of 86.20% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for CEVA was -0.60% per year.
CEVA (MEX:CEVA) 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
CEVA had a gross margin of 86.20% for the quarter that ended in Mar. 2026 => Durable 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.
CEVA Gross Margin % Related Terms
CEVA Gross Margin % Historical Data
* Premium members only.
The historical data trend for CEVA'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.
MEX:CEVA vs INDI, AOSL, LAES: Gross Margin % Comparison
For the Semiconductors subindustry, CEVA'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.
CEVA Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, CEVA's Gross Margin % distribution charts can be found below:
* The bar in red indicates where CEVA'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.
CEVA (MEX:CEVA) has a Gross Margin % of 86.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on CEVA and its competitors. This is near median its historical median of 88.85. Over the past decade, CEVA's Gross Margin % has ranged from 87.08 to 92.05. According to the industry distribution chart, CEVA ranks #19 out of 1009 companies in the Semiconductors industry, placing it in the top 1.9%.
Is CEVA's Gross Margin % too high?
CEVA's current Gross Margin % of 86.20% is near median its 10-year median of 88.85. Over the past 10 years, this metric has ranged from a low of 87.08 to a high of 92.05. The Semiconductors industry median Gross Margin % is 29.61. CEVA's value of 86.20% is 191.1% above this industry median. Based on the distribution chart, CEVA ranks #19 out of 1009 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, CEVA has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does CEVA's Gross Margin % compare to INDI and AOSL?
According to the Semiconductors industry distribution chart, CEVA ranks #19 out of 1009 companies for Gross Margin %. This places CEVA in the top 2% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. CEVA's value of 86.20% is 191.1% above this benchmark. Historically, CEVA's own Gross Margin % has ranged from 87.08 to 92.05 over the past decade. While the company's 10-year median is 88.85 vs. the industry median of 29.61, CEVA 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 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. CEVA's current Gross Margin % of 86.20% is 191.1% 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 CEVA 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. CEVA's current Gross Margin % is 86.20%, which is near median its own 10-year median of 88.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CEVA stock overvalued right now?
Based on GuruFocus' analysis, CEVA (MEX:CEVA) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN441.64, compared to a current price of MXN828.00 — trading 87.5% above its estimated fair value. The current Gross Margin % is 86.20%, which is near median its 10-year median of 88.85 and 191.1% above the Semiconductors industry median of 29.61. CEVA's overall GF Score™ is 54/100 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 CEVA (MEX:CEVA), the current Gross Margin % is 86.20% 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 CEVA (MEX:CEVA) Overvalued in 2026?
Based on GuruFocus' analysis, CEVA stock appears to be overvalued.
The current stock price of MXN828.00 is trading 87.5% above its estimated GF Value™ of MXN441.64.
GuruFocus considers CEVA to be Significantly Overvalued.
Key valuation signals for MEX:CEVA:
Gross Margin %: 86.20% (near median its 10-year median of 88.85)
GF Value™: MXN441.64 vs. price of MXN828.00 (87.5% above fair value)
Industry Position: 191.1% above the Semiconductors median (#19 of 1009)
No single metric tells the full story. See the MEX:CEVA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CEVA Inc is a licensor of signal-processing intellectual property. Through partnerships with semiconductor companies and original equipment manufacturers globally, the company helps produce devices for a range of end markets. OEMs and semiconductor companies choose to sell products with CEVA equipment to wireless, consumer, automotive, and Internet of Things companies. Revenue is derived mainly from licensing fees and related revenue, and royalties generated from the shipments of products utilizing its intellectual properties. CEVA also engages in the training and sale of development systems. The company operates in one reportable segment: the licensing of IP to semiconductor companies and electronic equipment manufacturers.
54GF Score
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