Silicon Motion TechnologyMEX:SIMO N 68 Net Margin % is 19.53% as of Mar. 2026, which is 34% above its 10-year median of 14.55. GuruFocus rates MEX:SIMO N with a GF Score™ of 68/100 and a GF Value™ of MXN2,087.99 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,023 Semiconductors companies, Silicon Motion Technology ranks better than 79.37% on this metric.
The historical rank and industry rank for Silicon Motion Technology's Net Margin % or its related term are showing as below:
MEX:SIMO N'
s Net Margin % Range Over the Past 10 Years
Min: 8.27 Med: 14.55 Max: 21.69
Current: 16.02
MEX:SIMO N's Net Margin % is ranked better than 79.37% of 1023
companies
in the Semiconductors industry
Industry Median: 4.17
vs MEX:SIMO N: 16.02
Silicon Motion Technology (MEX:SIMO N) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Silicon Motion Technology Net Margin % Related Terms
Silicon Motion Technology Net 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.
MEX:SIMO N vs QRVO, ALGM, CRUS: Net Margin % Comparison
For the Semiconductors subindustry, Silicon Motion Technology's Net Margin %, along with its competitors' market caps and Net 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 Motion Technology Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Silicon Motion Technology's Net Margin % distribution charts can be found below:
* The bar in red indicates where Silicon Motion Technology's Net 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.
Silicon Motion Technology (MEX:SIMO N) has a Net Margin % of 19.53% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Silicon Motion Technology and its competitors. This is 34% above median its historical median of 14.55. Over the past decade, Silicon Motion Technology's Net Margin % has ranged from 8.27 to 21.69. According to the industry distribution chart, Silicon Motion Technology ranks #211 out of 1023 companies in the Semiconductors industry, placing it in the top 20.6%.
Is Silicon Motion Technology's Net Margin % too high?
Silicon Motion Technology's current Net Margin % of 19.53% is 34% above median its 10-year median of 14.55. Over the past 10 years, this metric has ranged from a low of 8.27 to a high of 21.69. The Semiconductors industry median Net Margin % is 4.17. Silicon Motion Technology's value of 19.53% is 368.3% above this industry median. Based on the distribution chart, Silicon Motion Technology ranks #211 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Silicon Motion Technology has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Silicon Motion Technology's Net Margin % compare to QRVO and ALGM?
According to the Semiconductors industry distribution chart, Silicon Motion Technology ranks #211 out of 1023 companies for Net Margin %. This places Silicon Motion Technology in the top 21% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.17. Silicon Motion Technology's value of 19.53% is 368.3% above this benchmark. Historically, Silicon Motion Technology's own Net Margin % has ranged from 8.27 to 21.69 over the past decade. While the company's 10-year median is 14.55 vs. the industry median of 4.17, Silicon Motion Technology 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 Net Margin % for a Semiconductors company?
The median Net Margin % among Semiconductors companies is 4.17, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Silicon Motion Technology's current Net Margin % of 19.53% is 368.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Silicon Motion Technology and its competitors. For the Semiconductors industry, the median Net Margin % is 4.17 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Silicon Motion Technology's current Net Margin % is 19.53%, which is 34% above median its own 10-year median of 14.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Silicon Motion Technology stock overvalued right now?
Based on GuruFocus' analysis, Silicon Motion Technology (MEX:SIMO N) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN2,087.99, compared to a current price of MXN5,867.00 — trading 181% above its estimated fair value. The current Net Margin % is 19.53%, which is 34% above median its 10-year median of 14.55 and 368.3% above the Semiconductors industry median of 4.17. Silicon Motion Technology's overall GF Score™ is 68/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Silicon Motion Technology (MEX:SIMO N), the current Net Margin % is 19.53% 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 Motion Technology (MEX:SIMO N) Overvalued in 2026?
Based on GuruFocus' analysis, Silicon Motion Technology stock appears to be overvalued.
The current stock price of MXN5,867.00 is trading 181% above its estimated GF Value™ of MXN2,087.99.
GuruFocus considers Silicon Motion Technology to be Significantly Overvalued.
Key valuation signals for MEX:SIMO N:
Net Margin %: 19.53% (34% above median its 10-year median of 14.55)
GF Value™: MXN2,087.99 vs. price of MXN5,867.00 (181% above fair value)
Industry Position: 368.3% above the Semiconductors median (#211 of 1023)
No single metric tells the full story. See the MEX:SIMO N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Silicon Motion Technology Corp is engaged in developing NAND flash controllers for SSDs and other solid-state storage devices. Its only operating segment is to develop NAND flash controllers and SSD solutions. The company derives revenue from product categories such as Mobile Storage, Mobile Communications, and others. Silicon's geographical segments are Taiwan, the United States, Korea, China, Singapore, Malaysia, and others. The company's products are used in Personal Computing, Smartphone/Tablet/CE, Flash Card/USB Flash Drive, Industrial and Embedded, Automotive, and Enterprise and Data centers.
68GF Score
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