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Silvaco GroupSVCO -2.50%35 Gross Margin % is 85.15% as of Jun. 2026, which is 7% above its 10-year median of 79.60. GuruFocus rates SVCO with a GF Score™ of 35/100. The stock has 3 warning signs investors should review. Among 2,690 Software companies, Silvaco Group ranks better than 90.56% on this metric.
Silvaco Group (NAS:SVCO) 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
Silvaco Group had a gross margin of 85.15% for the quarter that ended in Jun. 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.
Silvaco Group Gross Margin % Related Terms
Silvaco Group Gross Margin % Historical Data
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The historical data trend for Silvaco Group'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.
For the Software - Application subindustry, Silvaco Group'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.
Silvaco Group Gross Margin % vs Software Industry
For the Software industry and Technology sector, Silvaco Group's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Silvaco Group'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.
Silvaco Group (SVCO) has a Gross Margin % of 85.15% as of Jun. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Silvaco Group and its competitors. This is near median its historical median of 79.60. Over the past decade, Silvaco Group's Gross Margin % has ranged from 78.29 to 83.12. According to the industry distribution chart, Silvaco Group ranks #254 out of 2690 companies in the Software industry, placing it in the top 9.4%.
Is Silvaco Group's Gross Margin % too high?
Silvaco Group's current Gross Margin % of 85.15% is near median its 10-year median of 79.60. Over the past 10 years, this metric has ranged from a low of 78.29 to a high of 83.12. The Software industry median Gross Margin % is 40.66. Silvaco Group's value of 85.15% is 109.4% above this industry median. Based on the distribution chart, Silvaco Group ranks #254 out of 2690 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Silvaco Group has a GF Score™ of 35/100, reflecting its overall financial health beyond just this single metric.
How does Silvaco Group's Gross Margin % compare to DUOT and AZ?
According to the Software industry distribution chart, Silvaco Group ranks #254 out of 2690 companies for Gross Margin %. This places Silvaco Group in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.66. Silvaco Group's value of 85.15% is 109.4% above this benchmark. Historically, Silvaco Group's own Gross Margin % has ranged from 78.29 to 83.12 over the past decade. While the company's 10-year median is 79.60 vs. the industry median of 40.66, Silvaco Group 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 Software company?
The median Gross Margin % among Software companies is 40.66, based on 2,690 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. Silvaco Group's current Gross Margin % of 85.15% is 109.4% 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 Silvaco Group and its competitors. For the Software industry, the median Gross Margin % is 40.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silvaco Group's current Gross Margin % is 85.15%, which is near median its own 10-year median of 79.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silvaco Group stock overvalued right now?
Silvaco Group (SVCO) has a current Gross Margin % of 85.15%. The current Gross Margin % is 85.15%, which is near median its 10-year median of 79.60 and 109.4% above the Software industry median of 40.66. Silvaco Group's overall GF Score™ is 35/100 with 3 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 Silvaco Group (SVCO), the current Gross Margin % is 85.15% as of Jun. 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.
Silvaco Group Inc is a provider of technology computer-aided design (TCAD) software, electronic data automation (EDA) software, and semiconductor intellectual property (SIP). TCAD, EDA and SIP solutions enable semiconductor and photonics companies to increase productivity and reduce their development and manufacturing costs. The company offers various technologies behind the chip solutions, ranging from providing software for the atomic level simulation of semiconductor and photonics material for devices, to providing software and SIP for the design and analysis of circuits and system level solutions. Silvaco generates maximum revenue from its business in the United States, and the rest from China, Japan, Korea, Taiwan, and other markets.
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