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Formosa Advanced Technologies Co (TPE:8131) 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
Formosa Advanced Technologies Co had a gross margin of 17.51% 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.
Formosa Advanced Technologies Co Gross Margin % Related Terms
Formosa Advanced Technologies 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.
Formosa Advanced Technologies Co Gross Margin % Chart
TPE:8131 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Formosa Advanced Technologies 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.
Formosa Advanced Technologies Co Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Formosa Advanced Technologies Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Formosa Advanced Technologies 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.
Formosa Advanced Technologies Co (TPE:8131) has a Gross Margin % of 17.51% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on Formosa Advanced Technologies Co and its competitors. This is near median its historical median of 17.03. Over the past decade, Formosa Advanced Technologies Co's Gross Margin % has ranged from 7.88 to 21.02. According to the industry distribution chart, Formosa Advanced Technologies Co ranks #850 out of 1011 companies in the Semiconductors industry, placing it in the top 84.1%.
Is Formosa Advanced Technologies Co's Gross Margin % too high?
Formosa Advanced Technologies Co's current Gross Margin % of 17.51% is near median its 10-year median of 17.03. Over the past 10 years, this metric has ranged from a low of 7.88 to a high of 21.02. The Semiconductors industry median Gross Margin % is 29.61. Formosa Advanced Technologies Co's value of 17.51% is 40.9% below this industry median. Based on the distribution chart, Formosa Advanced Technologies Co ranks #850 out of 1011 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Formosa Advanced Technologies Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Advanced Technologies Co's Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Formosa Advanced Technologies Co ranks #850 out of 1011 companies for Gross Margin %. This places Formosa Advanced Technologies Co in the lower half of its industry. The industry median Gross Margin % is 29.61. Formosa Advanced Technologies Co's value of 17.51% is 40.9% below this benchmark. Historically, Formosa Advanced Technologies Co's own Gross Margin % has ranged from 7.88 to 21.02 over the past decade. While the company's 10-year median is 17.03 vs. the industry median of 29.61, Formosa Advanced Technologies 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 Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,011 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. Formosa Advanced Technologies Co's current Gross Margin % of 17.51% is 40.9% 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 Formosa Advanced Technologies Co 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. Formosa Advanced Technologies Co's current Gross Margin % is 17.51%, which is near median its own 10-year median of 17.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Advanced Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Formosa Advanced Technologies Co (TPE:8131) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$47.56, compared to a current price of NT$81.20 — trading 70.7% above its estimated fair value. The current Gross Margin % is 17.51%, which is near median its 10-year median of 17.03 and 40.9% below the Semiconductors industry median of 29.61. Formosa Advanced Technologies Co's overall GF Score™ is 69/100 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 Formosa Advanced Technologies Co (TPE:8131), the current Gross Margin % is 17.51% 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 Formosa Advanced Technologies Co (TPE:8131) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Advanced Technologies Co stock appears to be overvalued.
The current stock price of NT$81.20 is trading 70.7% above its estimated GF Value™ of NT$47.56.
GuruFocus considers Formosa Advanced Technologies Co to be Significantly Overvalued.
Key valuation signals for TPE:8131:
Gross Margin %: 17.51% (near median its 10-year median of 17.03)
GF Value™: NT$47.56 vs. price of NT$81.20 (70.7% above fair value)
Industry Position: 40.9% below the Semiconductors median (#850 of 1011)
No single metric tells the full story. See the TPE:8131 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Advanced Technologies Co Business Description
Formosa Advanced Technologies Co Ltd is a professional manufacturer of DRAM assembly, testing, and module Turn-Key service in Taiwan. The group's business activity is operated in Taiwan, the USA, China, Korea, Mainland China, and Others. The company's operating segment includes the integrated-chips ("IC" ) department and the module department. The integrated-chips department includes packaging, testing, processing, and research and development of integrated chips. The module department includes the assembly, testing, and research and development of module pieces.
69GF Score
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