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Power IntegrationsPOWI -0.26%84 Net Margin % is 3.05% as of Mar. 2026, which is 78% below its 10-year median of 13.57. GuruFocus rates POWI with a GF Score™ of 84/100 and a GF Value™ of $70.67 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,022 Semiconductors companies, Power Integrations ranks worse than 52.15% on this metric.
Power Integrations (NAS:POWI) 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.
Power Integrations Net Margin % Related Terms
Power Integrations Net Margin % Historical Data
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The historical data trend for Power Integrations'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.
For the Semiconductors subindustry, Power Integrations'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.
Power Integrations Net Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Power Integrations's Net Margin % distribution charts can be found below:
* The bar in red indicates where Power Integrations'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.
Power Integrations (POWI) has a Net Margin % of 3.05% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Power Integrations and its competitors. This is 78% below median its historical median of 13.57. Over the past decade, Power Integrations' Net Margin % has ranged from 3.72 to 45.99. According to the industry distribution chart, Power Integrations ranks #533 out of 1022 companies in the Semiconductors industry, placing it in the top 52.2%.
Is Power Integrations' Net Margin % too high?
Power Integrations' current Net Margin % of 3.05% is 78% below median its 10-year median of 13.57. Over the past 10 years, this metric has ranged from a low of 3.72 to a high of 45.99. The Semiconductors industry median Net Margin % is 4.33. Power Integrations' value of 3.05% is 29.6% below this industry median. Based on the distribution chart, Power Integrations ranks #533 out of 1022 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Power Integrations has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Power Integrations' Net Margin % compare to PI and LASR?
According to the Semiconductors industry distribution chart, Power Integrations ranks #533 out of 1022 companies for Net Margin %. This places Power Integrations in the lower half of its industry. The industry median Net Margin % is 4.33. Power Integrations' value of 3.05% is 29.6% below this benchmark. Historically, Power Integrations' own Net Margin % has ranged from 3.72 to 45.99 over the past decade. While the company's 10-year median is 13.57 vs. the industry median of 4.33, Power Integrations 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 Net Margin % for a Semiconductors company?
The median Net Margin % among Semiconductors companies is 4.33, based on 1,022 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. Power Integrations's current Net Margin % of 3.05% is 29.6% 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 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 Power Integrations and its competitors. For the Semiconductors industry, the median Net Margin % is 4.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power Integrations's current Net Margin % is 3.05%, which is 78% below median its own 10-year median of 13.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Integrations stock overvalued right now?
Based on GuruFocus' analysis, Power Integrations (POWI) is currently considered Modestly Undervalued. The stock's GF Value™ is $70.67, compared to a current price of $60.71 — trading 14.1% below its estimated fair value. The current Net Margin % is 3.05%, which is 78% below median its 10-year median of 13.57 and 29.6% below the Semiconductors industry median of 4.33. Power Integrations' overall GF Score™ is 84/100 with 6 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 Power Integrations (POWI), the current Net Margin % is 3.05% 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 Power Integrations (POWI) Overvalued in 2026?
Based on GuruFocus' analysis, Power Integrations stock appears to be undervalued.
The current stock price of $60.71 is trading 14.1% below its estimated GF Value™ of $70.67.
GuruFocus considers Power Integrations to be Modestly Undervalued.
Key valuation signals for POWI:
Net Margin %: 3.05% (78% below median its 10-year median of 13.57)
GF Value™: $70.67 vs. price of $60.71 (14.1% below fair value)
Industry Position: 29.6% below the Semiconductors median (#533 of 1022)
No single metric tells the full story. See the POWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Integrations Inc designs, develops, and markets analog and mixed-signal integrated circuits (ICs) and other electronic components and circuitry used in high-voltage power conversion. Products are used in power converters that convert electricity from a high-voltage source to the type of power required for a specified downstream use. Products are used in electronic products including mobile phones, computing and networking equipment, appliances, electronic utility meters, battery-powered tools, industrial controls, home automation, or Internet of Things applications such as networked thermostats, power strips, and security devices. Geographically, the company generates maximum revenue from China and Hong Kong.
84GF Score
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