Tokyo ElectronTOELF +4.42%85 Gross Margin % is 46.81% as of Mar. 2026, which is 8% above its 10-year median of 43.29. GuruFocus rates TOELF with a GF Score™ of 85/100 and a GF Value™ of $204.97 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,011 Semiconductors companies, Tokyo Electron ranks better than 76.76% on this metric.
The historical rank and industry rank for Tokyo Electron's Gross Margin % or its related term are showing as below:
TOELF'
s Gross Margin % Range Over the Past 10 Years
Min: 40.09 Med: 43.29 Max: 47.14
Current: 45.34
During the past 13 years, the highestGross Margin % of Tokyo Electron was 47.14%. The lowest was 40.09%. And the median was 43.29%.
TOELF's Gross Margin % is ranked better than 76.76% of 1011
companies
in the Semiconductors industry
Industry Median: 29.61
vs TOELF: 45.34
Tokyo Electron had a gross margin of 46.81% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Tokyo Electron was 2.00% per year.
Tokyo Electron (OTCPK:TOELF) 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
Tokyo Electron had a gross margin of 46.81% 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.
Tokyo Electron Gross Margin % Related Terms
Tokyo Electron Gross Margin % Historical Data
* Premium members only.
The historical data trend for Tokyo Electron'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.
TOELF vs LRCX, AMAT, KLAC: Gross Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Tokyo Electron'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.
Tokyo Electron Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Tokyo Electron's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Tokyo Electron'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.
Tokyo Electron (TOELF) has a Gross Margin % of 46.81% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Tokyo Electron and its competitors. This is near median its historical median of 43.29. Over the past decade, Tokyo Electron's Gross Margin % has ranged from 40.09 to 47.14. According to the industry distribution chart, Tokyo Electron ranks #235 out of 1011 companies in the Semiconductors industry, placing it in the top 23.2%.
Is Tokyo Electron's Gross Margin % too high?
Tokyo Electron's current Gross Margin % of 46.81% is near median its 10-year median of 43.29. Over the past 10 years, this metric has ranged from a low of 40.09 to a high of 47.14. The Semiconductors industry median Gross Margin % is 29.61. Tokyo Electron's value of 46.81% is 58.1% above this industry median. Based on the distribution chart, Tokyo Electron ranks #235 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Tokyo Electron has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tokyo Electron's Gross Margin % compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, Tokyo Electron ranks #235 out of 1011 companies for Gross Margin %. This places Tokyo Electron in the top 23% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Tokyo Electron's value of 46.81% is 58.1% above this benchmark. Historically, Tokyo Electron's own Gross Margin % has ranged from 40.09 to 47.14 over the past decade. While the company's 10-year median is 43.29 vs. the industry median of 29.61, Tokyo Electron 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 1,011 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. Tokyo Electron's current Gross Margin % of 46.81% is 58.1% 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 Tokyo Electron 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. Tokyo Electron's current Gross Margin % is 46.81%, which is near median its own 10-year median of 43.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tokyo Electron stock overvalued right now?
Based on GuruFocus' analysis, Tokyo Electron (TOELF) is currently considered Significantly Overvalued. The stock's GF Value™ is $204.97, compared to a current price of $463.19 — trading 126% above its estimated fair value. The current Gross Margin % is 46.81%, which is near median its 10-year median of 43.29 and 58.1% above the Semiconductors industry median of 29.61. Tokyo Electron's overall GF Score™ is 85/100 with 8 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 Tokyo Electron (TOELF), the current Gross Margin % is 46.81% 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 Tokyo Electron (TOELF) Overvalued in 2026?
Based on GuruFocus' analysis, Tokyo Electron stock appears to be overvalued.
The current stock price of $463.19 is trading 126% above its estimated GF Value™ of $204.97.
GuruFocus considers Tokyo Electron to be Significantly Overvalued.
Key valuation signals for TOELF:
Gross Margin %: 46.81% (near median its 10-year median of 43.29)
GF Value™: $204.97 vs. price of $463.19 (126% above fair value)
Industry Position: 58.1% above the Semiconductors median (#235 of 1011)
No single metric tells the full story. See the TOELF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tokyo Electron is a major supplier of semiconductor fabrication tools. It operates primarily in the etching, deposition, and cleaning segments, which involve adding and removing materials to and from semiconductor wafers. Customers include leading-edge logic, foundry, and memory chipmakers such as Samsung Electronics, Intel, TSMC, and SK Hynix.
85GF Score
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Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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