Suzhou Oriental Semiconductor Co (SHSE:688261) 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
Suzhou Oriental Semiconductor Co had a gross margin of 16.67% 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.
Suzhou Oriental Semiconductor Co Gross Margin % Related Terms
Suzhou Oriental 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.
Suzhou Oriental Semiconductor Co Gross Margin % Chart
SHSE:688261 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Suzhou Oriental 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.
Suzhou Oriental Semiconductor Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Suzhou Oriental Semiconductor Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Suzhou Oriental 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.
Suzhou Oriental Semiconductor Co (SHSE:688261) has a Gross Margin % of 16.67% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Suzhou Oriental Semiconductor Co and its competitors. This is 18% below median its historical median of 20.29. Over the past decade, Suzhou Oriental Semiconductor Co's Gross Margin % has ranged from 14.29 to 33.96. According to the industry distribution chart, Suzhou Oriental Semiconductor Co ranks #747 out of 1008 companies in the Semiconductors industry, placing it in the top 74.1%.
Is Suzhou Oriental Semiconductor Co's Gross Margin % too high?
Suzhou Oriental Semiconductor Co's current Gross Margin % of 16.67% is 18% below median its 10-year median of 20.29. Over the past 10 years, this metric has ranged from a low of 14.29 to a high of 33.96. The Semiconductors industry median Gross Margin % is 29.61. Suzhou Oriental Semiconductor Co's value of 16.67% is 43.7% below this industry median. Based on the distribution chart, Suzhou Oriental Semiconductor Co ranks #747 out of 1008 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Suzhou Oriental Semiconductor Co has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Suzhou Oriental Semiconductor Co's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Suzhou Oriental Semiconductor Co ranks #747 out of 1008 companies for Gross Margin %. This places Suzhou Oriental Semiconductor Co in the lower half of its industry. The industry median Gross Margin % is 29.61. Suzhou Oriental Semiconductor Co's value of 16.67% is 43.7% below this benchmark. Historically, Suzhou Oriental Semiconductor Co's own Gross Margin % has ranged from 14.29 to 33.96 over the past decade. While the company's 10-year median is 20.29 vs. the industry median of 29.61, Suzhou Oriental Semiconductor Co 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 1,008 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. Suzhou Oriental Semiconductor Co's current Gross Margin % of 16.67% is 43.7% 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 Suzhou Oriental 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. Suzhou Oriental Semiconductor Co's current Gross Margin % is 16.67%, which is 18% below median its own 10-year median of 20.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Suzhou Oriental Semiconductor Co stock overvalued right now?
Based on GuruFocus' analysis, Suzhou Oriental Semiconductor Co (SHSE:688261) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥74.81, compared to a current price of ¥96.10 — trading 28.5% above its estimated fair value. The current Gross Margin % is 16.67%, which is 18% below median its 10-year median of 20.29 and 43.7% below the Semiconductors industry median of 29.61. Suzhou Oriental Semiconductor Co's overall GF Score™ is 87/100 with 5 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 Suzhou Oriental Semiconductor Co (SHSE:688261), the current Gross Margin % is 16.67% 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 Suzhou Oriental Semiconductor Co (SHSE:688261) Overvalued in 2026?
Based on GuruFocus' analysis, Suzhou Oriental Semiconductor Co stock appears to be overvalued.
The current stock price of ¥96.10 is trading 28.5% above its estimated GF Value™ of ¥74.81.
GuruFocus considers Suzhou Oriental Semiconductor Co to be Modestly Overvalued.
Key valuation signals for SHSE:688261:
Gross Margin %: 16.67% (18% below median its 10-year median of 20.29)
GF Value™: ¥74.81 vs. price of ¥96.10 (28.5% above fair value)
Industry Position: 43.7% below the Semiconductors median (#747 of 1008)
No single metric tells the full story. See the SHSE:688261 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Suzhou Oriental Semiconductor Co Business Description
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