Valens SemiconductorVLN -7.34%71 Gross Margin % is 62.20% as of Mar. 2026, which is 11% below its 10-year median of 69.88. GuruFocus rates VLN with a GF Score™ of 71/100 and a GF Value™ of $2.08 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,011 Semiconductors companies, Valens Semiconductor ranks better than 93.08% on this metric.
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
Valens Semiconductor had a gross margin of 62.20% for the quarter that ended in Mar. 2026 => Durable 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.
Valens Semiconductor Gross Margin % Related Terms
Valens Semiconductor Gross Margin % Historical Data
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The historical data trend for Valens Semiconductor'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.
VLN vs QUIK, GSIT, ALMU: Gross Margin % Comparison
For the Semiconductors subindustry, Valens Semiconductor'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.
Valens Semiconductor Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Valens Semiconductor's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Valens Semiconductor'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.
Valens Semiconductor (VLN) has a Gross Margin % of 62.20% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Valens Semiconductor and its competitors. This is 11% below median its historical median of 69.88. Over the past decade, Valens Semiconductor's Gross Margin % has ranged from 59.24 to 79.04. According to the industry distribution chart, Valens Semiconductor ranks #70 out of 1011 companies in the Semiconductors industry, placing it in the top 6.9%.
Is Valens Semiconductor's Gross Margin % too high?
Valens Semiconductor's current Gross Margin % of 62.20% is 11% below median its 10-year median of 69.88. Over the past 10 years, this metric has ranged from a low of 59.24 to a high of 79.04. The Semiconductors industry median Gross Margin % is 29.61. Valens Semiconductor's value of 62.20% is 110.1% above this industry median. Based on the distribution chart, Valens Semiconductor ranks #70 out of 1011 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Valens Semiconductor has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Valens Semiconductor's Gross Margin % compare to QUIK and GSIT?
According to the Semiconductors industry distribution chart, Valens Semiconductor ranks #70 out of 1011 companies for Gross Margin %. This places Valens Semiconductor in the top 7% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Valens Semiconductor's value of 62.20% is 110.1% above this benchmark. Historically, Valens Semiconductor's own Gross Margin % has ranged from 59.24 to 79.04 over the past decade. While the company's 10-year median is 69.88 vs. the industry median of 29.61, Valens Semiconductor 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 1,011 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. Valens Semiconductor's current Gross Margin % of 62.20% is 110.1% 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 Valens Semiconductor 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. Valens Semiconductor's current Gross Margin % is 62.20%, which is 11% below median its own 10-year median of 69.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valens Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Valens Semiconductor (VLN) is currently considered Fairly Valued. The stock's GF Value™ is $2.08, compared to a current price of $2.02 — trading 2.9% below its estimated fair value. The current Gross Margin % is 62.20%, which is 11% below median its 10-year median of 69.88 and 110.1% above the Semiconductors industry median of 29.61. Valens Semiconductor's 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 Valens Semiconductor (VLN), the current Gross Margin % is 62.20% 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 Valens Semiconductor (VLN) Overvalued in 2026?
Based on GuruFocus' analysis, Valens Semiconductor stock appears to be undervalued.
The current stock price of $2.02 is trading 2.9% below its estimated GF Value™ of $2.08.
GuruFocus considers Valens Semiconductor to be Fairly Valued.
Key valuation signals for VLN:
Gross Margin %: 62.20% (11% below median its 10-year median of 69.88)
GF Value™: $2.08 vs. price of $2.02 (2.9% below fair value)
Industry Position: 110.1% above the Semiconductors median (#70 of 1011)
No single metric tells the full story. See the VLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Cross Industry Business, which includes solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical revenue is derived from Hungary.
71GF Score
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