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Wafer Works (Shanghai) CoSHSE:688584 +2.13%35 Gross Margin % is 28.14% as of Mar. 2026, which is 3% below its 10-year median of 29.04. GuruFocus rates SHSE:688584 with a GF Score™ of 35/100. The stock has 4 warning signs investors should review. Among 1,010 Semiconductors companies, Wafer Works (Shanghai) Co ranks better than 51.19% on this metric.
SHSE:688584's Gross Margin % is ranked better than 51.19% of 1010
companies
in the Semiconductors industry
Industry Median: 29.605
vs SHSE:688584: 30.10
Wafer Works (Shanghai) Co had a gross margin of 28.14% for the quarter that ended in Mar. 2026 => Competition eroding margins
Wafer Works (Shanghai) Co (SHSE:688584) 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
Wafer Works (Shanghai) Co had a gross margin of 28.14% for the quarter that ended in Mar. 2026 => 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.
Wafer Works (Shanghai) Co Gross Margin % Related Terms
Wafer Works (Shanghai) 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.
SHSE:688584 vs AMAT, LRCX, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Wafer Works (Shanghai) 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.
Wafer Works (Shanghai) Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Wafer Works (Shanghai) Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wafer Works (Shanghai) 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.
Wafer Works (Shanghai) Co (SHSE:688584) has a Gross Margin % of 28.14% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Wafer Works (Shanghai) Co and its competitors. This is near median its historical median of 29.04. Over the past decade, Wafer Works (Shanghai) Co's Gross Margin % has ranged from 14.71 to 42.81. According to the industry distribution chart, Wafer Works (Shanghai) Co ranks #493 out of 1010 companies in the Semiconductors industry, placing it in the top 48.8%.
Is Wafer Works (Shanghai) Co's Gross Margin % too high?
Wafer Works (Shanghai) Co's current Gross Margin % of 28.14% is near median its 10-year median of 29.04. Over the past 10 years, this metric has ranged from a low of 14.71 to a high of 42.81. The Semiconductors industry median Gross Margin % is 29.61. Wafer Works (Shanghai) Co's value of 28.14% is 4.9% below this industry median. Based on the distribution chart, Wafer Works (Shanghai) Co ranks #493 out of 1010 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Wafer Works (Shanghai) Co has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does Wafer Works (Shanghai) Co's Gross Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Wafer Works (Shanghai) Co ranks #493 out of 1010 companies for Gross Margin %. This puts Wafer Works (Shanghai) Co in the upper half of its industry. The industry median Gross Margin % is 29.61. Wafer Works (Shanghai) Co's value of 28.14% is 4.9% below this benchmark. Historically, Wafer Works (Shanghai) Co's own Gross Margin % has ranged from 14.71 to 42.81 over the past decade. While the company's 10-year median is 29.04 vs. the industry median of 29.61, Wafer Works (Shanghai) 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 1,010 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. Wafer Works (Shanghai) Co's current Gross Margin % of 28.14% is 4.9% 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 Wafer Works (Shanghai) 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. Wafer Works (Shanghai) Co's current Gross Margin % is 28.14%, which is near median its own 10-year median of 29.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wafer Works (Shanghai) Co stock overvalued right now?
Wafer Works (Shanghai) Co (SHSE:688584) has a current Gross Margin % of 28.14%. The current Gross Margin % is 28.14%, which is near median its 10-year median of 29.04 and 4.9% below the Semiconductors industry median of 29.61. Wafer Works (Shanghai) Co's overall GF Score™ is 35/100 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 Wafer Works (Shanghai) Co (SHSE:688584), the current Gross Margin % is 28.14% 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.
Wafer Works (Shanghai) Co Ltd is engaged in the manufacturing of semiconductor silicon epitaxial wafers in China. Its main products are semiconductor silicon epitaxial wafers and is mainly used to prepare power devices and analog chips, and are widely used in automobiles, communications, electric power, industry, consumer electronics, high-end equipment, and other fields.
35GF Score
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