Young Fast Optoelectronics Co (TPE:3622) 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 Fast Optoelectronics Co had a gross margin of 39.54% 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.
Young Fast Optoelectronics Co Gross Margin % Related Terms
Young Fast Optoelectronics 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.
Young Fast Optoelectronics Co Gross Margin % Chart
For the Electronic Components subindustry, Young Fast Optoelectronics 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.
Young Fast Optoelectronics Co Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Young Fast Optoelectronics Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Young Fast Optoelectronics 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.
Young Fast Optoelectronics Co (TPE:3622) has a Gross Margin % of 39.54% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Young Fast Optoelectronics Co and its competitors. This is 101% above median its historical median of 19.69. Over the past decade, Young Fast Optoelectronics Co's Gross Margin % has ranged from 7.75 to 45.89. According to the industry distribution chart, Young Fast Optoelectronics Co ranks #436 out of 2449 companies in the Hardware industry, placing it in the top 17.8%.
Is Young Fast Optoelectronics Co's Gross Margin % too high?
Young Fast Optoelectronics Co's current Gross Margin % of 39.54% is 101% above median its 10-year median of 19.69. Over the past 10 years, this metric has ranged from a low of 7.75 to a high of 45.89. The Hardware industry median Gross Margin % is 24.50. Young Fast Optoelectronics Co's value of 39.54% is 61.4% above this industry median. Based on the distribution chart, Young Fast Optoelectronics Co ranks #436 out of 2449 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Young Fast Optoelectronics Co has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Young Fast Optoelectronics Co's Gross Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Young Fast Optoelectronics Co ranks #436 out of 2449 companies for Gross Margin %. This places Young Fast Optoelectronics Co in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.50. Young Fast Optoelectronics Co's value of 39.54% is 61.4% above this benchmark. Historically, Young Fast Optoelectronics Co's own Gross Margin % has ranged from 7.75 to 45.89 over the past decade. While the company's 10-year median is 19.69 vs. the industry median of 24.50, Young Fast Optoelectronics Co 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 Hardware company?
The median Gross Margin % among Hardware companies is 24.50, based on 2,449 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 Fast Optoelectronics Co's current Gross Margin % of 39.54% is 61.4% 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 Young Fast Optoelectronics Co and its competitors. For the Hardware industry, the median Gross Margin % is 24.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Young Fast Optoelectronics Co's current Gross Margin % is 39.54%, which is 101% above median its own 10-year median of 19.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Young Fast Optoelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Young Fast Optoelectronics Co (TPE:3622) is currently considered Fairly Valued. The stock's GF Value™ is NT$58.28, compared to a current price of NT$56.20 — trading 3.6% below its estimated fair value. The current Gross Margin % is 39.54%, which is 101% above median its 10-year median of 19.69 and 61.4% above the Hardware industry median of 24.50. Young Fast Optoelectronics Co's overall GF Score™ is 89/100 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 Young Fast Optoelectronics Co (TPE:3622), the current Gross Margin % is 39.54% 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 Young Fast Optoelectronics Co (TPE:3622) Overvalued in 2026?
Based on GuruFocus' analysis, Young Fast Optoelectronics Co stock appears to be undervalued.
The current stock price of NT$56.20 is trading 3.6% below its estimated GF Value™ of NT$58.28.
GuruFocus considers Young Fast Optoelectronics Co to be Fairly Valued.
Key valuation signals for TPE:3622:
Gross Margin %: 39.54% (101% above median its 10-year median of 19.69)
GF Value™: NT$58.28 vs. price of NT$56.20 (3.6% below fair value)
Industry Position: 61.4% above the Hardware median (#436 of 2449)
No single metric tells the full story. See the TPE:3622 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Young Fast Optoelectronics Co Business Description
Young Fast Optoelectronics Co Ltd engages in the research and development, manufacturing, and sales of various types of touch panels. The reporting segments of the company are divided into the Electromechanical Business Group and the Optoelectronics Business Group. The majority of the company's revenue is generated from its Electromechanical Business Group, which is mainly engaged in the manufacture of power cable accessories, such as power generation, transmission, and distribution, as its main business. Geographically, it derives key revenue from Taiwan and the rest from the Americas and the Asia region.
89GF Score
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