SemtechMEX:SMTC 55 Net Margin % is 9.14% as of Apr. 2026, which is 31% above its 10-year median of 7.00. GuruFocus rates MEX:SMTC with a GF Score™ of 55/100 and a GF Value™ of MXN724.19 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,023 Semiconductors companies, Semtech ranks worse than 67.64% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Semtech's Net Income for the
three
months ended in Apr. 2026 was MXN466 Mil. Semtech's Revenue for the
three
months ended in Apr. 2026 was MXN5,097 Mil. Therefore, Semtech's net margin for the quarter that ended in Apr. 2026 was 9.14%.
The historical rank and industry rank for Semtech's Net Margin % or its related term are showing as below:
MEX:SMTC'
s Net Margin % Range Over the Past 10 Years
Min: -125.7 Med: 7 Max: 16.96
Current: -3.04
MEX:SMTC's Net Margin % is ranked worse than 67.64% of 1023
companies
in the Semiconductors industry
Industry Median: 4.17
vs MEX:SMTC: -3.04
Semtech (MEX:SMTC) 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.
Semtech Net Margin % Related Terms
Semtech Net Margin % Historical Data
* Premium members only.
The historical data trend for Semtech's Net 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.
MEX:SMTC vs RMBS, SWKS, SITM: Net Margin % Comparison
For the Semiconductors subindustry, Semtech'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.
Semtech Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Semtech's Net Margin % distribution charts can be found below:
* The bar in red indicates where Semtech'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.
Semtech (MEX:SMTC) has a Net Margin % of 9.14% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Semtech and its competitors. This is 31% above median its historical median of 7.00. According to the industry distribution chart, Semtech ranks #692 out of 1023 companies in the Semiconductors industry, placing it in the top 67.6%.
Is Semtech's Net Margin % too high?
Semtech's current Net Margin % of 9.14% is 31% above median its 10-year median of 7.00. The Semiconductors industry median Net Margin % is 4.17. Semtech's value of 9.14% is 119.2% above this industry median. Based on the distribution chart, Semtech ranks #692 out of 1023 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Semtech has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semtech's Net Margin % compare to RMBS and SWKS?
According to the Semiconductors industry distribution chart, Semtech ranks #692 out of 1023 companies for Net Margin %. This places Semtech in the lower half of its industry. The industry median Net Margin % is 4.17. Semtech's value of 9.14% is 119.2% above this benchmark. While the company's 10-year median is 7.00 vs. the industry median of 4.17, Semtech 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. Semtech's current Net Margin % of 9.14% is 119.2% 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 Semtech 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. Semtech's current Net Margin % is 9.14%, which is 31% above median its own 10-year median of 7.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semtech stock overvalued right now?
Based on GuruFocus' analysis, Semtech (MEX:SMTC) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN724.19, compared to a current price of MXN2,863.00 — trading 295.3% above its estimated fair value. The current Net Margin % is 9.14%, which is 31% above median its 10-year median of 7.00 and 119.2% above the Semiconductors industry median of 4.17. Semtech's overall GF Score™ is 55/100 with 8 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 Semtech (MEX:SMTC), the current Net Margin % is 9.14% as of Apr. 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 Semtech (MEX:SMTC) Overvalued in 2026?
Based on GuruFocus' analysis, Semtech stock appears to be overvalued.
The current stock price of MXN2,863.00 is trading 295.3% above its estimated GF Value™ of MXN724.19.
GuruFocus considers Semtech to be Significantly Overvalued.
Key valuation signals for MEX:SMTC:
Net Margin %: 9.14% (31% above median its 10-year median of 7.00)
GF Value™: MXN724.19 vs. price of MXN2,863.00 (295.3% above fair value)
Industry Position: 119.2% above the Semiconductors median (#692 of 1023)
No single metric tells the full story. See the MEX:SMTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semtech Corp is a provider of high-performance semiconductors powering data center networking, Internet of Things ("IoT") connectivity, and cellular infrastructure solutions. The company designs, develops, manufactures, and markets a diverse portfolio of products for commercial applications, addressing the infrastructure, high-end consumer, and industrial end markets. The company operates in four reportable segments: Signal Integrity, Analog Mixed Signal and Wireless, IoT Systems, and Connected Services. The majority of the company's revenue is earned through the Analog Mixed Signal and Wireless segment. Geographically, the majority of the company's revenue is earned from the Asia Pacific region; the company also operates in North America and Europe.
55GF Score
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