SUMCOSUMCF +4.76%65 Gross Margin % is 7.37% as of Dec. 2025, which is 70% below its 10-year median of 24.64. GuruFocus rates SUMCF with a GF Score™ of 65/100 and a GF Value™ of $11.76 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,011 Semiconductors companies, SUMCO ranks worse than 84.37% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SUMCO's Gross Profit for the
three
months ended in Dec. 2025 was $50 Mil. SUMCO's Revenue for the
three
months ended in Dec. 2025 was $675 Mil. Therefore, SUMCO's Gross Margin % for the quarter that ended in Dec. 2025 was 7.37%.
Warning Sign:
SUMCO Corp gross margin has been in long-term decline. The average rate of decline per year is -9.9%.
The historical rank and industry rank for SUMCO's Gross Margin % or its related term are showing as below:
SUMCF'
s Gross Margin % Range Over the Past 10 Years
Min: 10.76 Med: 24.64 Max: 35.1
Current: 10.76
During the past 13 years, the highestGross Margin % of SUMCO was 35.10%. The lowest was 10.76%. And the median was 24.64%.
SUMCF's Gross Margin % is ranked worse than 84.37% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs SUMCF: 10.76
SUMCO had a gross margin of 7.37% for the quarter that ended in Dec. 2025 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SUMCO was -9.90% per year.
SUMCO (OTCPK:SUMCF) 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
SUMCO had a gross margin of 7.37% for the quarter that ended in Dec. 2025 => 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.
SUMCO Gross Margin % Related Terms
SUMCO Gross Margin % Historical Data
* Premium members only.
The historical data trend for SUMCO'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.
SUMCF vs LRCX, AMAT, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, SUMCO'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.
SUMCO Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SUMCO's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SUMCO'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.
SUMCO (SUMCF) has a Gross Margin % of 7.37% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on SUMCO and its competitors. This is 70% below median its historical median of 24.64. Over the past decade, SUMCO's Gross Margin % has ranged from 10.76 to 35.10. According to the industry distribution chart, SUMCO ranks #853 out of 1011 companies in the Semiconductors industry, placing it in the top 84.4%.
Is SUMCO's Gross Margin % too high?
SUMCO's current Gross Margin % of 7.37% is 70% below median its 10-year median of 24.64. Over the past 10 years, this metric has ranged from a low of 10.76 to a high of 35.10. The Semiconductors industry median Gross Margin % is 29.61. SUMCO's value of 7.37% is 75.1% below this industry median. Based on the distribution chart, SUMCO ranks #853 out of 1011 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, SUMCO has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SUMCO's Gross Margin % compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, SUMCO ranks #853 out of 1011 companies for Gross Margin %. This places SUMCO in the lower half of its industry. The industry median Gross Margin % is 29.61. SUMCO's value of 7.37% is 75.1% below this benchmark. Historically, SUMCO's own Gross Margin % has ranged from 10.76 to 35.10 over the past decade. While the company's 10-year median is 24.64 vs. the industry median of 29.61, SUMCO 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 1,011 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. SUMCO's current Gross Margin % of 7.37% is 75.1% 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 SUMCO 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. SUMCO's current Gross Margin % is 7.37%, which is 70% below median its own 10-year median of 24.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SUMCO stock overvalued right now?
Based on GuruFocus' analysis, SUMCO (SUMCF) is currently considered Significantly Overvalued. The stock's GF Value™ is $11.76, compared to a current price of $24.54 — trading 108.7% above its estimated fair value. The current Gross Margin % is 7.37%, which is 70% below median its 10-year median of 24.64 and 75.1% below the Semiconductors industry median of 29.61. SUMCO's overall GF Score™ is 65/100 with 9 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 SUMCO (SUMCF), the current Gross Margin % is 7.37% 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 SUMCO (SUMCF) Overvalued in 2026?
Based on GuruFocus' analysis, SUMCO stock appears to be overvalued.
The current stock price of $24.54 is trading 108.7% above its estimated GF Value™ of $11.76.
GuruFocus considers SUMCO to be Significantly Overvalued.
Key valuation signals for SUMCF:
Gross Margin %: 7.37% (70% below median its 10-year median of 24.64)
GF Value™: $11.76 vs. price of $24.54 (108.7% above fair value)
Industry Position: 75.1% below the Semiconductors median (#853 of 1011)
No single metric tells the full story. See the SUMCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 1999 as a joint venture between Nippon Steel and two Mitsubishi entities, Sumco is the world's second-largest semiconductor-grade silicon wafer manufacturer, with an estimated 21% market share in 2025. Sumco is headquartered in Tokyo and operates seven production sites across Japan. It also maintains sales and support offices in Taiwan, the US, the UK, Indonesia, and Singapore. Sumco sells to most semiconductor manufacturers like TSMC, Intel, Samsung, and Micron. The firm employs over 9,700 people.
65GF Score
Get the complete analysis for SUMCF
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