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
Silicon Laboratories had a gross margin of 59.48% 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.
Silicon Laboratories Gross Margin % Related Terms
Silicon Laboratories Gross Margin % Historical Data
* Premium members only.
The historical data trend for Silicon Laboratories'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.
STU:LA5 vs CRUS, VSH, QRVO: Gross Margin % Comparison
For the Semiconductors subindustry, Silicon Laboratories'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.
Silicon Laboratories Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Silicon Laboratories's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Silicon Laboratories'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.
Silicon Laboratories (STU:LA5) has a Gross Margin % of 59.48% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Silicon Laboratories and its competitors. This is near median its historical median of 59.04. Over the past decade, Silicon Laboratories' Gross Margin % has ranged from 53.42 to 62.74. According to the industry distribution chart, Silicon Laboratories ranks #83 out of 1009 companies in the Semiconductors industry, placing it in the top 8.2%.
Is Silicon Laboratories' Gross Margin % too high?
Silicon Laboratories' current Gross Margin % of 59.48% is near median its 10-year median of 59.04. Over the past 10 years, this metric has ranged from a low of 53.42 to a high of 62.74. The Semiconductors industry median Gross Margin % is 29.61. Silicon Laboratories' value of 59.48% is 100.9% above this industry median. Based on the distribution chart, Silicon Laboratories ranks #83 out of 1009 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Silicon Laboratories has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Silicon Laboratories' Gross Margin % compare to CRUS and VSH?
According to the Semiconductors industry distribution chart, Silicon Laboratories ranks #83 out of 1009 companies for Gross Margin %. This places Silicon Laboratories in the top 8% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 29.61. Silicon Laboratories' value of 59.48% is 100.9% above this benchmark. Historically, Silicon Laboratories' own Gross Margin % has ranged from 53.42 to 62.74 over the past decade. While the company's 10-year median is 59.04 vs. the industry median of 29.61, Silicon Laboratories 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. Silicon Laboratories's current Gross Margin % of 59.48% is 100.9% 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 Silicon Laboratories 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. Silicon Laboratories's current Gross Margin % is 59.48%, which is near median its own 10-year median of 59.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silicon Laboratories stock overvalued right now?
Silicon Laboratories (STU:LA5) has a current Gross Margin % of 59.48%. The stock's GF Value™ is €138.31, compared to a current price of €192.00 — trading 38.8% above its estimated fair value. The current Gross Margin % is 59.48%, which is near median its 10-year median of 59.04 and 100.9% above the Semiconductors industry median of 29.61. Silicon Laboratories' overall GF Score™ is 79/100 with 5 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 Silicon Laboratories (STU:LA5), the current Gross Margin % is 59.48% 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 Silicon Laboratories (STU:LA5) Overvalued in 2026?
Based on GuruFocus' analysis, Silicon Laboratories stock appears to be overvalued.
The current stock price of €192.00 is trading 38.8% above its estimated GF Value™ of €138.31.
Key valuation signals for STU:LA5:
Gross Margin %: 59.48% (near median its 10-year median of 59.04)
GF Value™: €138.31 vs. price of €192.00 (38.8% above fair value)
Industry Position: 100.9% above the Semiconductors median (#83 of 1009)
No single metric tells the full story. See the STU:LA5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silicon Laboratories Inc Inc is a provider of secure, intelligent wireless technology for a more connected world. The company's integrated hardware and software platform, intuitive development tools, industry ecosystem, and robust support help customers build industrial, commercial, home, and life applications. Company make it easy for developers to solve complex wireless challenges throughout the product lifecycle and get to market quickly with solutions that transform industries, grow economies, and improve lives. Company operates in USA, China, Taiwan and Rest of World, with maximum revenue from rest of the world.
79GF Score
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