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
Taiwan Surface Mounting Technology had a gross margin of 13.06% 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.
Taiwan Surface Mounting Technology Gross Margin % Related Terms
Taiwan Surface Mounting Technology 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:6278 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Taiwan Surface Mounting Technology'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.
Taiwan Surface Mounting Technology Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Surface Mounting Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Surface Mounting Technology'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.
Taiwan Surface Mounting Technology (TPE:6278) has a Gross Margin % of 13.06% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Taiwan Surface Mounting Technology and its competitors. This is near median its historical median of 12.22. Over the past decade, Taiwan Surface Mounting Technology's Gross Margin % has ranged from 8.02 to 13.36. According to the industry distribution chart, Taiwan Surface Mounting Technology ranks #820 out of 1009 companies in the Semiconductors industry, placing it in the top 81.3%.
Is Taiwan Surface Mounting Technology's Gross Margin % too high?
Taiwan Surface Mounting Technology's current Gross Margin % of 13.06% is near median its 10-year median of 12.22. Over the past 10 years, this metric has ranged from a low of 8.02 to a high of 13.36. The Semiconductors industry median Gross Margin % is 29.61. Taiwan Surface Mounting Technology's value of 13.06% is 55.9% below this industry median. Based on the distribution chart, Taiwan Surface Mounting Technology ranks #820 out of 1009 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Taiwan Surface Mounting Technology has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Surface Mounting Technology's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Surface Mounting Technology ranks #820 out of 1009 companies for Gross Margin %. This places Taiwan Surface Mounting Technology in the lower half of its industry. The industry median Gross Margin % is 29.61. Taiwan Surface Mounting Technology's value of 13.06% is 55.9% below this benchmark. Historically, Taiwan Surface Mounting Technology's own Gross Margin % has ranged from 8.02 to 13.36 over the past decade. While the company's 10-year median is 12.22 vs. the industry median of 29.61, Taiwan Surface Mounting Technology 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 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. Taiwan Surface Mounting Technology's current Gross Margin % of 13.06% is 55.9% 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 Taiwan Surface Mounting Technology 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. Taiwan Surface Mounting Technology's current Gross Margin % is 13.06%, which is near median its own 10-year median of 12.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Surface Mounting Technology stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Surface Mounting Technology (TPE:6278) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$109.85, compared to a current price of NT$212.00 — trading 93% above its estimated fair value. The current Gross Margin % is 13.06%, which is near median its 10-year median of 12.22 and 55.9% below the Semiconductors industry median of 29.61. Taiwan Surface Mounting Technology's overall GF Score™ is 68/100 with 1 warning sign 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 Taiwan Surface Mounting Technology (TPE:6278), the current Gross Margin % is 13.06% 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 Taiwan Surface Mounting Technology (TPE:6278) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Surface Mounting Technology stock appears to be overvalued.
The current stock price of NT$212.00 is trading 93% above its estimated GF Value™ of NT$109.85.
GuruFocus considers Taiwan Surface Mounting Technology to be Significantly Overvalued.
Key valuation signals for TPE:6278:
Gross Margin %: 13.06% (near median its 10-year median of 12.22)
GF Value™: NT$109.85 vs. price of NT$212.00 (93% above fair value)
Industry Position: 55.9% below the Semiconductors median (#820 of 1009)
No single metric tells the full story. See the TPE:6278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Surface Mounting Technology Business Description
Taiwan Surface Mounting Technology Corp is engaged in the design, processing, manufacturing, and trading of TFT-LCD panels, general electronic information products, and PCB surface-mount packaging. Its Surface Mounting Technology is widely used for IT and electronic products. The products provided include Control boards for TFT-LCD panels (TV/Desk Top/ Note books), other electronic products, and light bars.
68GF Score
Get the complete analysis for TPE:6278
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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