Young OpticsTPE:3504 63 Gross Margin % is 18.23% as of Mar. 2026, which is 3% above its 10-year median of 17.75. GuruFocus rates TPE:3504 with a GF Score™ of 63/100 and a GF Value™ of NT$52.36 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,992 Industrial Products companies, Young Optics ranks worse than 73.8% on this metric.
Young Optics Inc gross margin has been in long-term decline. The average rate of decline per year is -5.4%.
The historical rank and industry rank for Young Optics's Gross Margin % or its related term are showing as below:
TPE:3504'
s Gross Margin % Range Over the Past 10 Years
Min: 10.52 Med: 17.75 Max: 21.35
Current: 17.95
During the past 13 years, the highestGross Margin % of Young Optics was 21.35%. The lowest was 10.52%. And the median was 17.75%.
TPE:3504's Gross Margin % is ranked worse than 73.8% of 2992
companies
in the Industrial Products industry
Industry Median: 26.82
vs TPE:3504: 17.95
Young Optics had a gross margin of 18.23% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Young Optics was -5.40% per year.
Young Optics (TPE:3504) 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
Young Optics had a gross margin of 18.23% for the quarter that ended in Mar. 2026 => 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.
Young Optics Gross Margin % Related Terms
Young Optics Gross Margin % Historical Data
* Premium members only.
The historical data trend for Young Optics'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 Electrical Equipment & Parts subindustry, Young Optics'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.
Young Optics Gross Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Young Optics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Young Optics'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.
Young Optics (TPE:3504) has a Gross Margin % of 18.23% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Young Optics and its competitors. This is near median its historical median of 17.75. Over the past decade, Young Optics' Gross Margin % has ranged from 10.52 to 21.35. According to the industry distribution chart, Young Optics ranks #2208 out of 2992 companies in the Industrial Products industry, placing it in the top 73.8%.
Is Young Optics' Gross Margin % too high?
Young Optics' current Gross Margin % of 18.23% is near median its 10-year median of 17.75. Over the past 10 years, this metric has ranged from a low of 10.52 to a high of 21.35. The Industrial Products industry median Gross Margin % is 26.82. Young Optics' value of 18.23% is 32% below this industry median. Based on the distribution chart, Young Optics ranks #2208 out of 2992 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Young Optics has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Young Optics' Gross Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Young Optics ranks #2208 out of 2992 companies for Gross Margin %. This places Young Optics in the lower half of its industry. The industry median Gross Margin % is 26.82. Young Optics' value of 18.23% is 32% below this benchmark. Historically, Young Optics' own Gross Margin % has ranged from 10.52 to 21.35 over the past decade. While the company's 10-year median is 17.75 vs. the industry median of 26.82, Young Optics 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 an Industrial Products company?
The median Gross Margin % among Industrial Products companies is 26.82, based on 2,992 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. Young Optics's current Gross Margin % of 18.23% is 32% 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 Young Optics and its competitors. For the Industrial Products industry, the median Gross Margin % is 26.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Young Optics's current Gross Margin % is 18.23%, which is near median its own 10-year median of 17.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Young Optics stock overvalued right now?
Based on GuruFocus' analysis, Young Optics (TPE:3504) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$52.36, compared to a current price of NT$81.80 — trading 56.2% above its estimated fair value. The current Gross Margin % is 18.23%, which is near median its 10-year median of 17.75 and 32% below the Industrial Products industry median of 26.82. Young Optics' overall GF Score™ is 63/100 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 Young Optics (TPE:3504), the current Gross Margin % is 18.23% 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 Young Optics (TPE:3504) Overvalued in 2026?
Based on GuruFocus' analysis, Young Optics stock appears to be overvalued.
The current stock price of NT$81.80 is trading 56.2% above its estimated GF Value™ of NT$52.36.
GuruFocus considers Young Optics to be Significantly Overvalued.
Key valuation signals for TPE:3504:
Gross Margin %: 18.23% (near median its 10-year median of 17.75)
GF Value™: NT$52.36 vs. price of NT$81.80 (56.2% above fair value)
Industry Position: 32% below the Industrial Products median (#2208 of 2992)
No single metric tells the full story. See the TPE:3504 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Young Optics Inc mainly engages in research, design, manufacturing and sales of optical components, optical engines, and key components. The Group is mainly engaged in the development, market expansion, and manufacture of optical related products. The company has a single operating segment. The product portfolio of the company comprises mold machining, metal machining, optical components, Engine, Module, etc. The company has presence in Mainland China, Southeast Asia, Europe, United States, Taiwan, and Others.
63GF Score
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