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Taiwan Semiconductor CoROCO:5425 +4.07%82 Gross Margin % is 30.67% as of Dec. 2025, which is 3% below its 10-year median of 31.66. GuruFocus rates ROCO:5425 with a GF Score™ of 82/100 and a GF Value™ of NT$87.67 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,011 Semiconductors companies, Taiwan Semiconductor Co ranks worse than 50.64% on this metric.
ROCO:5425's Gross Margin % is ranked worse than 50.64% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs ROCO:5425: 29.38
Taiwan Semiconductor Co had a gross margin of 30.67% for the quarter that ended in Dec. 2025 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for Taiwan Semiconductor Co was -1.60% per year.
Taiwan Semiconductor Co (ROCO:5425) 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
Taiwan Semiconductor Co had a gross margin of 30.67% for the quarter that ended in Dec. 2025 => Competition eroding margins
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.
Taiwan Semiconductor Co Gross Margin % Related Terms
Taiwan Semiconductor Co 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.
ROCO:5425 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Co'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.
Taiwan Semiconductor Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Co'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.
Taiwan Semiconductor Co (ROCO:5425) has a Gross Margin % of 30.67% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Taiwan Semiconductor Co and its competitors. This is near median its historical median of 31.66. Over the past decade, Taiwan Semiconductor Co's Gross Margin % has ranged from 28.56 to 36.80. According to the industry distribution chart, Taiwan Semiconductor Co ranks #512 out of 1011 companies in the Semiconductors industry, placing it in the top 50.6%.
Is Taiwan Semiconductor Co's Gross Margin % too high?
Taiwan Semiconductor Co's current Gross Margin % of 30.67% is near median its 10-year median of 31.66. Over the past 10 years, this metric has ranged from a low of 28.56 to a high of 36.80. The Semiconductors industry median Gross Margin % is 29.61. Taiwan Semiconductor Co's value of 30.67% is 3.6% above this industry median. Based on the distribution chart, Taiwan Semiconductor Co ranks #512 out of 1011 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Taiwan Semiconductor Co has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Co's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Co ranks #512 out of 1011 companies for Gross Margin %. This places Taiwan Semiconductor Co in the lower half of its industry. The industry median Gross Margin % is 29.61. Taiwan Semiconductor Co's value of 30.67% is 3.6% above this benchmark. Historically, Taiwan Semiconductor Co's own Gross Margin % has ranged from 28.56 to 36.80 over the past decade. While the company's 10-year median is 31.66 vs. the industry median of 29.61, Taiwan Semiconductor Co 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 1,011 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. Taiwan Semiconductor Co's current Gross Margin % of 30.67% is 3.6% 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 Taiwan Semiconductor Co 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. Taiwan Semiconductor Co's current Gross Margin % is 30.67%, which is near median its own 10-year median of 31.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Semiconductor Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Semiconductor Co (ROCO:5425) is currently considered Fairly Valued. The stock's GF Value™ is NT$87.67, compared to a current price of NT$89.50 — trading 2.1% above its estimated fair value. The current Gross Margin % is 30.67%, which is near median its 10-year median of 31.66 and 3.6% above the Semiconductors industry median of 29.61. Taiwan Semiconductor Co's overall GF Score™ is 82/100 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 Taiwan Semiconductor Co (ROCO:5425), the current Gross Margin % is 30.67% 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 Taiwan Semiconductor Co (ROCO:5425) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Co stock appears to be overvalued.
The current stock price of NT$89.50 is trading 2.1% above its estimated GF Value™ of NT$87.67.
GuruFocus considers Taiwan Semiconductor Co to be Fairly Valued.
Key valuation signals for ROCO:5425:
Gross Margin %: 30.67% (near median its 10-year median of 31.66)
GF Value™: NT$87.67 vs. price of NT$89.50 (2.1% above fair value)
Industry Position: 3.6% above the Semiconductors median (#512 of 1011)
No single metric tells the full story. See the ROCO:5425 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Semiconductor Co Ltd is a company that is mainly engaged in the manufacturing and sale of semiconductor devices. The company's segment includes Rectifiers and Bar Code Printers. It generates maximum revenue from the Rectifiers segment. Its product portfolio includes Bridge Rectifier, Diode, DIAC and Thyristor, ESD Protection, Photocoupler, Transistor, Hall Effect Sensors, Voltage Reference, Switching Regulator, Linear Voltage Regulator, Amplifier and Comparator, and others.
82GF Score
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