Lontium SemiconductorSHSE:688486 -3.10%94 Gross Margin % is 54.90% as of Mar. 2026, which is 8% below its 10-year median of 59.95. GuruFocus rates SHSE:688486 with a GF Score™ of 94/100 and a GF Value™ of ¥70.34 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,009 Semiconductors companies, Lontium Semiconductor ranks better than 87.71% on this metric.
SHSE:688486's Gross Margin % is ranked better than 87.71% of 1009
companies
in the Semiconductors industry
Industry Median: 29.61
vs SHSE:688486: 54.28
Lontium Semiconductor had a gross margin of 54.90% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Lontium Semiconductor was -2.30% per year.
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
Lontium Semiconductor had a gross margin of 54.90% 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.
Lontium Semiconductor Gross Margin % Related Terms
Lontium Semiconductor Gross Margin % Historical Data
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The historical data trend for Lontium Semiconductor'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.
SHSE:688486 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Lontium Semiconductor'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.
Lontium Semiconductor Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lontium Semiconductor's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Lontium Semiconductor'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.
Lontium Semiconductor (SHSE:688486) has a Gross Margin % of 54.90% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Lontium Semiconductor and its competitors. This is near median its historical median of 59.95. Over the past decade, Lontium Semiconductor's Gross Margin % has ranged from 54.00 to 64.59. According to the industry distribution chart, Lontium Semiconductor ranks #124 out of 1009 companies in the Semiconductors industry, placing it in the top 12.3%.
Is Lontium Semiconductor's Gross Margin % too high?
Lontium Semiconductor's current Gross Margin % of 54.90% is near median its 10-year median of 59.95. Over the past 10 years, this metric has ranged from a low of 54.00 to a high of 64.59. The Semiconductors industry median Gross Margin % is 29.61. Lontium Semiconductor's value of 54.90% is 85.4% above this industry median. Based on the distribution chart, Lontium Semiconductor ranks #124 out of 1009 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Lontium Semiconductor has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lontium Semiconductor's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Lontium Semiconductor ranks #124 out of 1009 companies for Gross Margin %. This places Lontium Semiconductor in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Lontium Semiconductor's value of 54.90% is 85.4% above this benchmark. Historically, Lontium Semiconductor's own Gross Margin % has ranged from 54.00 to 64.59 over the past decade. While the company's 10-year median is 59.95 vs. the industry median of 29.61, Lontium Semiconductor 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. Lontium Semiconductor's current Gross Margin % of 54.90% is 85.4% 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 Lontium Semiconductor 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. Lontium Semiconductor's current Gross Margin % is 54.90%, which is near median its own 10-year median of 59.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lontium Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Lontium Semiconductor (SHSE:688486) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥70.34, compared to a current price of ¥61.87 — trading 12% below its estimated fair value. The current Gross Margin % is 54.90%, which is near median its 10-year median of 59.95 and 85.4% above the Semiconductors industry median of 29.61. Lontium Semiconductor's overall GF Score™ is 94/100 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 Lontium Semiconductor (SHSE:688486), the current Gross Margin % is 54.90% 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 Lontium Semiconductor (SHSE:688486) Overvalued in 2026?
Based on GuruFocus' analysis, Lontium Semiconductor stock appears to be undervalued.
The current stock price of ¥61.87 is trading 12% below its estimated GF Value™ of ¥70.34.
GuruFocus considers Lontium Semiconductor to be Modestly Undervalued.
Key valuation signals for SHSE:688486:
Gross Margin %: 54.90% (near median its 10-year median of 59.95)
GF Value™: ¥70.34 vs. price of ¥61.87 (12% below fair value)
Industry Position: 85.4% above the Semiconductors median (#124 of 1009)
No single metric tells the full story. See the SHSE:688486 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressNo. 3963, Susong Road, Building B3, Intelligent Equipment Science and Technology Park, Economic and Technological Development Zone, Anhui Province, Hefei, CHN, 230601
Lontium Semiconductor Corp is engaged in the developing and marketing high-speed interface chips, embedded GPUs and ultra high-definition display drivers targeted for wide range high-definition multi-media applications. Its products include HDMI V1.3/V1.4/2.0/2.1 chipset, Displayport 1.2/1.4 chipset, USB 2.0, USB3.1 Type C chipset, MIPI chipset, LVDS chipset, VGA and LCD/TV controller and driver serving applications from PCs, notebooks, smartphones, TVs, monitors, automobiles to VR and accessories. The company's high-speed interface IPs and a wide range mixed-signal IPs on leading edge manufacturing technology serve various SoC vendors worldwide.
94GF Score
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