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MegaChipsTSE:6875 +0.10%62 Gross Margin % is 0.45% as of Mar. 2026, which is 98% below its 10-year median of 19.12. GuruFocus rates TSE:6875 with a GF Score™ of 62/100 and a GF Value™ of 円4,550.45 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,010 Semiconductors companies, MegaChips ranks worse than 76.83% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. MegaChips's Gross Profit for the
three
months ended in Mar. 2026 was 円32 Mil. MegaChips's Revenue for the
three
months ended in Mar. 2026 was 円7,177 Mil. Therefore, MegaChips's Gross Margin % for the quarter that ended in Mar. 2026 was 0.45%.
The historical rank and industry rank for MegaChips's Gross Margin % or its related term are showing as below:
TSE:6875'
s Gross Margin % Range Over the Past 10 Years
Min: 15.24 Med: 19.12 Max: 27.83
Current: 15.24
During the past 13 years, the highestGross Margin % of MegaChips was 27.83%. The lowest was 15.24%. And the median was 19.12%.
TSE:6875's Gross Margin % is ranked worse than 76.83% of 1010
companies
in the Semiconductors industry
Industry Median: 29.61
vs TSE:6875: 15.24
MegaChips had a gross margin of 0.45% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for MegaChips was 0.00% per year.
MegaChips (TSE:6875) 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
MegaChips had a gross margin of 0.45% 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.
MegaChips Gross Margin % Related Terms
MegaChips Gross Margin % Historical Data
* Premium members only.
The historical data trend for MegaChips'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.
TSE:6875 vs NVDA, AVGO, MU: Gross Margin % Comparison
For the Semiconductors subindustry, MegaChips'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.
MegaChips Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, MegaChips's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MegaChips'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.
MegaChips (TSE:6875) has a Gross Margin % of 0.45% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on MegaChips and its competitors. This is 98% below median its historical median of 19.12. Over the past decade, MegaChips' Gross Margin % has ranged from 15.24 to 27.83. According to the industry distribution chart, MegaChips ranks #776 out of 1010 companies in the Semiconductors industry, placing it in the top 76.8%.
Is MegaChips' Gross Margin % too high?
MegaChips' current Gross Margin % of 0.45% is 98% below median its 10-year median of 19.12. Over the past 10 years, this metric has ranged from a low of 15.24 to a high of 27.83. The Semiconductors industry median Gross Margin % is 29.61. MegaChips' value of 0.45% is 98.5% below this industry median. Based on the distribution chart, MegaChips ranks #776 out of 1010 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, MegaChips has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MegaChips' Gross Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, MegaChips ranks #776 out of 1010 companies for Gross Margin %. This places MegaChips in the lower half of its industry. The industry median Gross Margin % is 29.61. MegaChips' value of 0.45% is 98.5% below this benchmark. Historically, MegaChips' own Gross Margin % has ranged from 15.24 to 27.83 over the past decade. While the company's 10-year median is 19.12 vs. the industry median of 29.61, MegaChips 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 1,010 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. MegaChips's current Gross Margin % of 0.45% is 98.5% 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 MegaChips 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. MegaChips's current Gross Margin % is 0.45%, which is 98% below median its own 10-year median of 19.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MegaChips stock overvalued right now?
Based on GuruFocus' analysis, MegaChips (TSE:6875) is currently considered Significantly Overvalued. The stock's GF Value™ is 円4,550.45, compared to a current price of 円10,190.00 — trading 123.9% above its estimated fair value. The current Gross Margin % is 0.45%, which is 98% below median its 10-year median of 19.12 and 98.5% below the Semiconductors industry median of 29.61. MegaChips' overall GF Score™ is 62/100 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 MegaChips (TSE:6875), the current Gross Margin % is 0.45% 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 MegaChips (TSE:6875) Overvalued in 2026?
Based on GuruFocus' analysis, MegaChips stock appears to be overvalued.
The current stock price of 円10,190.00 is trading 123.9% above its estimated GF Value™ of 円4,550.45.
GuruFocus considers MegaChips to be Significantly Overvalued.
Key valuation signals for TSE:6875:
Gross Margin %: 0.45% (98% below median its 10-year median of 19.12)
GF Value™: 円4,550.45 vs. price of 円10,190.00 (123.9% above fair value)
Industry Position: 98.5% below the Semiconductors median (#776 of 1010)
No single metric tells the full story. See the TSE:6875 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MegaChips Corp. is engaged in the design, development, manufacture, and sale of system large scale integration (LSI), based on its basic image, audio and communications technologies and electronic devices and system equipment that contain its system LSIs. The company's main products Include LSIs for entertainment devices such as game consoles, image processing LSIs for digital cameras, LSIs for liquid crystal display (LCD) panels, and video surveillance system equipment for security field, among others. Geographically all the operations are functioned through the region of Japan and it derives revenue through the sale of LSI products.
62GF Score
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