Monolithic Power SystemsBSP:M2PR34 -5.58%69 Operating Margin % is 29.99% as of Mar. 2026, which is 44% above its 10-year median of 20.78. GuruFocus rates BSP:M2PR34 with a GF Score™ of 69/100 and a GF Value™ of R$92.53 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,023 Semiconductors companies, Monolithic Power Systems ranks better than 91.5% on this metric.
Monolithic Power Systems Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Monolithic Power Systems's Operating Margin % or its related term are showing as below:
BSP:M2PR34'
s Operating Margin % Range Over the Past 10 Years
Min: 13.95 Med: 20.78 Max: 29.36
Current: 27.09
BSP:M2PR34's Operating Margin % is ranked better than 91.5% of 1023
companies
in the Semiconductors industry
Industry Median: 5.18
vs BSP:M2PR34: 27.09
Monolithic Power Systems (BSP:M2PR34) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Monolithic Power Systems Operating Margin % Related Terms
Monolithic Power Systems Operating 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.
BSP:M2PR34 vs NXPI, ALAB, CBRS: Operating Margin % Comparison
For the Semiconductors subindustry, Monolithic Power Systems's Operating Margin %, along with its competitors' market caps and Operating 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.
Monolithic Power Systems Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Monolithic Power Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Monolithic Power Systems's Operating Margin % falls into.
Monolithic Power Systems Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Monolithic Power Systems's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Monolithic Power Systems (BSP:M2PR34) has a Operating Margin % of 29.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Monolithic Power Systems and its competitors. This is 44% above median its historical median of 20.78. Over the past decade, Monolithic Power Systems' Operating Margin % has ranged from 13.95 to 29.36. According to the industry distribution chart, Monolithic Power Systems ranks #87 out of 1023 companies in the Semiconductors industry, placing it in the top 8.5%.
Is Monolithic Power Systems' Operating Margin % too high?
Monolithic Power Systems' current Operating Margin % of 29.99% is 44% above median its 10-year median of 20.78. Over the past 10 years, this metric has ranged from a low of 13.95 to a high of 29.36. The Semiconductors industry median Operating Margin % is 5.18. Monolithic Power Systems' value of 29.99% is 479% above this industry median. Based on the distribution chart, Monolithic Power Systems ranks #87 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Monolithic Power Systems has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Monolithic Power Systems' Operating Margin % compare to NXPI and ALAB?
According to the Semiconductors industry distribution chart, Monolithic Power Systems ranks #87 out of 1023 companies for Operating Margin %. This places Monolithic Power Systems in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.18. Monolithic Power Systems' value of 29.99% is 479% above this benchmark. Historically, Monolithic Power Systems' own Operating Margin % has ranged from 13.95 to 29.36 over the past decade. While the company's 10-year median is 20.78 vs. the industry median of 5.18, Monolithic Power Systems 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 Operating Margin % for a Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.18, based on 1,023 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Monolithic Power Systems's current Operating Margin % of 29.99% is 479% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Monolithic Power Systems and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Monolithic Power Systems's current Operating Margin % is 29.99%, which is 44% above median its own 10-year median of 20.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Monolithic Power Systems stock overvalued right now?
Based on GuruFocus' analysis, Monolithic Power Systems (BSP:M2PR34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$92.53, compared to a current price of R$123.11 — trading 33% above its estimated fair value. The current Operating Margin % is 29.99%, which is 44% above median its 10-year median of 20.78 and 479% above the Semiconductors industry median of 5.18. Monolithic Power Systems' overall GF Score™ is 69/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Monolithic Power Systems (BSP:M2PR34), the current Operating Margin % is 29.99% 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 Monolithic Power Systems (BSP:M2PR34) Overvalued in 2026?
Based on GuruFocus' analysis, Monolithic Power Systems stock appears to be overvalued.
The current stock price of R$123.11 is trading 33% above its estimated GF Value™ of R$92.53.
GuruFocus considers Monolithic Power Systems to be Significantly Overvalued.
Key valuation signals for BSP:M2PR34:
Operating Margin %: 29.99% (44% above median its 10-year median of 20.78)
GF Value™: R$92.53 vs. price of R$123.11 (33% above fair value)
Industry Position: 479% above the Semiconductors median (#87 of 1023)
No single metric tells the full story. See the BSP:M2PR34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Monolithic Power Systems is an analog and mixed-signal chipmaker specializing in power management solutions. Its mission is to reduce total energy consumption in end systems. It serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.
69GF Score
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