Universal Microelectronics Co (TPE:2413) 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
Universal Microelectronics Co had a gross margin of 17.05% 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.
Universal Microelectronics Co Gross Margin % Related Terms
Universal Microelectronics 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.
Universal Microelectronics Co Gross Margin % Chart
For the Electronic Components subindustry, Universal Microelectronics 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.
Universal Microelectronics Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Universal Microelectronics Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Universal Microelectronics 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.
Universal Microelectronics Co (TPE:2413) has a Gross Margin % of 17.05% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Universal Microelectronics Co and its competitors. This is 12% above median its historical median of 15.28. Over the past decade, Universal Microelectronics Co's Gross Margin % has ranged from 12.16 to 17.35. According to the industry distribution chart, Universal Microelectronics Co ranks #1799 out of 2453 companies in the Hardware industry, placing it in the top 73.3%.
Is Universal Microelectronics Co's Gross Margin % too high?
Universal Microelectronics Co's current Gross Margin % of 17.05% is 12% above median its 10-year median of 15.28. Over the past 10 years, this metric has ranged from a low of 12.16 to a high of 17.35. The Hardware industry median Gross Margin % is 24.52. Universal Microelectronics Co's value of 17.05% is 30.5% below this industry median. Based on the distribution chart, Universal Microelectronics Co ranks #1799 out of 2453 companies in the Hardware industry, which is below the industry midpoint. Overall, Universal Microelectronics Co has a GF Score™ of 53/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Microelectronics Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Universal Microelectronics Co ranks #1799 out of 2453 companies for Gross Margin %. This places Universal Microelectronics Co in the lower half of its industry. The industry median Gross Margin % is 24.52. Universal Microelectronics Co's value of 17.05% is 30.5% below this benchmark. Historically, Universal Microelectronics Co's own Gross Margin % has ranged from 12.16 to 17.35 over the past decade. While the company's 10-year median is 15.28 vs. the industry median of 24.52, Universal Microelectronics 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.52, based on 2,453 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. Universal Microelectronics Co's current Gross Margin % of 17.05% is 30.5% 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 Universal Microelectronics Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.52 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Microelectronics Co's current Gross Margin % is 17.05%, which is 12% above median its own 10-year median of 15.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Microelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Universal Microelectronics Co (TPE:2413) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$18.90, compared to a current price of NT$48.25 — trading 155.3% above its estimated fair value. The current Gross Margin % is 17.05%, which is 12% above median its 10-year median of 15.28 and 30.5% below the Hardware industry median of 24.52. Universal Microelectronics Co's overall GF Score™ is 53/100 with 2 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 Universal Microelectronics Co (TPE:2413), the current Gross Margin % is 17.05% 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 Universal Microelectronics Co (TPE:2413) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Microelectronics Co stock appears to be overvalued.
The current stock price of NT$48.25 is trading 155.3% above its estimated GF Value™ of NT$18.90.
GuruFocus considers Universal Microelectronics Co to be Significantly Overvalued.
Key valuation signals for TPE:2413:
Gross Margin %: 17.05% (12% above median its 10-year median of 15.28)
GF Value™: NT$18.90 vs. price of NT$48.25 (155.3% above fair value)
Industry Position: 30.5% below the Hardware median (#1799 of 2453)
No single metric tells the full story. See the TPE:2413 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Microelectronics Co Business Description
Universal Microelectronics Co Ltd is engaged in the manufacturing and selling of computer peripherals, connectors, wires, and other parts. Its operating segments include the Magnetic Component & Power Product Department, which is responsible for the production of electronic components and generates maximum revenue; the Information and Communication Product Department, which is responsible for the production of OEM and ODM information and communication products; the Optical Communication Product Office, which is responsible for the production of optical communication equipment products; and Others, which mainly involves the trading of raw materials and acting as a purchasing agent for commodities. It generates maximum revenue from the United States.
53GF Score
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