Advanced Power ElectronicsTPE:8261 +0.82%71 Gross Margin % is 38.07% as of Mar. 2026, which is 71% above its 10-year median of 22.29. GuruFocus rates TPE:8261 with a GF Score™ of 71/100 and a GF Value™ of NT$95.86 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,009 Semiconductors companies, Advanced Power Electronics ranks better than 64.82% on this metric.
Advanced Power Electronics (TPE:8261) 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
Advanced Power Electronics had a gross margin of 38.07% for the quarter that ended in Mar. 2026 => 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.
Advanced Power Electronics Gross Margin % Related Terms
Advanced Power Electronics 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:8261 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, Advanced Power Electronics'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.
Advanced Power Electronics Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Advanced Power Electronics's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Advanced Power Electronics'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.
Advanced Power Electronics (TPE:8261) has a Gross Margin % of 38.07% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Advanced Power Electronics and its competitors. This is 71% above median its historical median of 22.29. Over the past decade, Advanced Power Electronics' Gross Margin % has ranged from 15.45 to 37.65. According to the industry distribution chart, Advanced Power Electronics ranks #355 out of 1009 companies in the Semiconductors industry, placing it in the top 35.2%.
Is Advanced Power Electronics' Gross Margin % too high?
Advanced Power Electronics' current Gross Margin % of 38.07% is 71% above median its 10-year median of 22.29. Over the past 10 years, this metric has ranged from a low of 15.45 to a high of 37.65. The Semiconductors industry median Gross Margin % is 29.61. Advanced Power Electronics' value of 38.07% is 28.6% above this industry median. Based on the distribution chart, Advanced Power Electronics ranks #355 out of 1009 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Advanced Power Electronics has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Power Electronics' Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Advanced Power Electronics ranks #355 out of 1009 companies for Gross Margin %. This puts Advanced Power Electronics in the upper half of its industry. The industry median Gross Margin % is 29.61. Advanced Power Electronics' value of 38.07% is 28.6% above this benchmark. Historically, Advanced Power Electronics' own Gross Margin % has ranged from 15.45 to 37.65 over the past decade. While the company's 10-year median is 22.29 vs. the industry median of 29.61, Advanced Power Electronics 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 1,009 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. Advanced Power Electronics's current Gross Margin % of 38.07% is 28.6% 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 Advanced Power Electronics 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. Advanced Power Electronics's current Gross Margin % is 38.07%, which is 71% above median its own 10-year median of 22.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Power Electronics stock overvalued right now?
Based on GuruFocus' analysis, Advanced Power Electronics (TPE:8261) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$95.86, compared to a current price of NT$246.00 — trading 156.6% above its estimated fair value. The current Gross Margin % is 38.07%, which is 71% above median its 10-year median of 22.29 and 28.6% above the Semiconductors industry median of 29.61. Advanced Power Electronics' overall GF Score™ is 71/100 with 6 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 Advanced Power Electronics (TPE:8261), the current Gross Margin % is 38.07% 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 Advanced Power Electronics (TPE:8261) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Power Electronics stock appears to be overvalued.
The current stock price of NT$246.00 is trading 156.6% above its estimated GF Value™ of NT$95.86.
GuruFocus considers Advanced Power Electronics to be Significantly Overvalued.
Key valuation signals for TPE:8261:
Gross Margin %: 38.07% (71% above median its 10-year median of 22.29)
GF Value™: NT$95.86 vs. price of NT$246.00 (156.6% above fair value)
Industry Position: 28.6% above the Semiconductors median (#355 of 1009)
No single metric tells the full story. See the TPE:8261 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Power Electronics Corp, formerly Advance Power Electronics Co Ltd provides total solutions for new power requirements in MOSFETs, and IGBTs in Taiwan. It is mainly engaged in mainly deals with the design, testing, and trading, among others, of electronic elements, such as integrated circuits and semi-conductors. Geographically, the company operates in Taiwan, China and Others, of which it derives maximum revenue from Taiwan. The products of the company include: Power Mosfets; Super Junction; and Automotive. The company's products are broadly applied in the computing, consumer electronics, display, communications and industrial segments.
71GF Score
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