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
Elite Semiconductor Microelectronics Tech had a gross margin of 32.33% for the quarter that ended in Dec. 2025 => 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.
Elite Semiconductor Microelectronics Tech Gross Margin % Related Terms
Elite Semiconductor Microelectronics Tech 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.
TPE:3006 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Elite Semiconductor Microelectronics Tech'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.
Elite Semiconductor Microelectronics Tech Gross Margin % vs Semiconductors Industry
* 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.
Elite Semiconductor Microelectronics Tech (TPE:3006) has a Gross Margin % of 32.33% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Elite Semiconductor Microelectronics Tech and its competitors. This is 88% above median its historical median of 17.20. Over the past decade, Elite Semiconductor Microelectronics Tech's Gross Margin % has ranged from 2.73 to 36.55. According to the industry distribution chart, Elite Semiconductor Microelectronics Tech ranks #741 out of 1010 companies in the Semiconductors industry, placing it in the top 73.4%.
Is Elite Semiconductor Microelectronics Tech's Gross Margin % too high?
Elite Semiconductor Microelectronics Tech's current Gross Margin % of 32.33% is 88% above median its 10-year median of 17.20. Over the past 10 years, this metric has ranged from a low of 2.73 to a high of 36.55. The Semiconductors industry median Gross Margin % is 29.61. Elite Semiconductor Microelectronics Tech's value of 32.33% is 9.2% above this industry median. Based on the distribution chart, Elite Semiconductor Microelectronics Tech ranks #741 out of 1010 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Elite Semiconductor Microelectronics Tech has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Elite Semiconductor Microelectronics Tech's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Elite Semiconductor Microelectronics Tech ranks #741 out of 1010 companies for Gross Margin %. This places Elite Semiconductor Microelectronics Tech in the lower half of its industry. The industry median Gross Margin % is 29.61. Elite Semiconductor Microelectronics Tech's value of 32.33% is 9.2% above this benchmark. Historically, Elite Semiconductor Microelectronics Tech's own Gross Margin % has ranged from 2.73 to 36.55 over the past decade. While the company's 10-year median is 17.20 vs. the industry median of 29.61, Elite Semiconductor Microelectronics Tech 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 1,010 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. Elite Semiconductor Microelectronics Tech's current Gross Margin % of 32.33% is 9.2% 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 Elite Semiconductor Microelectronics Tech 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. Elite Semiconductor Microelectronics Tech's current Gross Margin % is 32.33%, which is 88% above median its own 10-year median of 17.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elite Semiconductor Microelectronics Tech stock overvalued right now?
Based on GuruFocus' analysis, Elite Semiconductor Microelectronics Tech (TPE:3006) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$85.25, compared to a current price of NT$237.00 — trading 178% above its estimated fair value. The current Gross Margin % is 32.33%, which is 88% above median its 10-year median of 17.20 and 9.2% above the Semiconductors industry median of 29.61. Elite Semiconductor Microelectronics Tech's overall GF Score™ is 52/100 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 Elite Semiconductor Microelectronics Tech (TPE:3006), the current Gross Margin % is 32.33% 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 Elite Semiconductor Microelectronics Tech (TPE:3006) Overvalued in 2026?
Based on GuruFocus' analysis, Elite Semiconductor Microelectronics Tech stock appears to be overvalued.
The current stock price of NT$237.00 is trading 178% above its estimated GF Value™ of NT$85.25.
GuruFocus considers Elite Semiconductor Microelectronics Tech to be Significantly Overvalued.
Key valuation signals for TPE:3006:
Gross Margin %: 32.33% (88% above median its 10-year median of 17.20)
GF Value™: NT$85.25 vs. price of NT$237.00 (178% above fair value)
Industry Position: 9.2% above the Semiconductors median (#741 of 1010)
No single metric tells the full story. See the TPE:3006 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elite Semiconductor Microelectronics Tech Business Description
Elite Semiconductor Microelectronics Tech Inc is a Taiwan-based company engaged in the design of memory-integrated circuit boards. The company generates part of its revenue domestically, with the majority of revenue earned in the Asia region outside Taiwan. The company designs, manufactures, markets, and produces dynamic random-access memory, static random-access memory, and flash memory. Products are used in applications such as personal computer storage, portable electronic devices, communication devices, mobile phones, and servers.
52GF Score
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