MACOM Technology Solutions HoldingsFRA:1MA -6.43%69 Operating Margin % is 17.59% as of Mar. 2026, which is 129% above its 10-year median of 7.67. GuruFocus rates FRA:1MA with a GF Score™ of 69/100 and a GF Value™ of €146.70 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,023 Semiconductors companies, MACOM Technology Solutions Holdings ranks better than 74.88% on this metric.
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.
MACOM Technology Solutions Holdings Operating Margin % Related Terms
MACOM Technology Solutions Holdings 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.
FRA:1MA vs LSCC, SITM, RMBS: Operating Margin % Comparison
For the Semiconductors subindustry, MACOM Technology Solutions Holdings'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.
MACOM Technology Solutions Holdings Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, MACOM Technology Solutions Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MACOM Technology Solutions Holdings's Operating Margin % falls into.
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.
* 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.
MACOM Technology Solutions Holdings (FRA:1MA) has a Operating Margin % of 17.59% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on MACOM Technology Solutions Holdings and its competitors. This is 129% above median its historical median of 7.67. According to the industry distribution chart, MACOM Technology Solutions Holdings ranks #257 out of 1023 companies in the Semiconductors industry, placing it in the top 25.1%.
Is MACOM Technology Solutions Holdings' Operating Margin % too high?
MACOM Technology Solutions Holdings' current Operating Margin % of 17.59% is 129% above median its 10-year median of 7.67. The Semiconductors industry median Operating Margin % is 5.18. MACOM Technology Solutions Holdings' value of 17.59% is 239.6% above this industry median. Based on the distribution chart, MACOM Technology Solutions Holdings ranks #257 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, MACOM Technology Solutions Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MACOM Technology Solutions Holdings' Operating Margin % compare to LSCC and SITM?
According to the Semiconductors industry distribution chart, MACOM Technology Solutions Holdings ranks #257 out of 1023 companies for Operating Margin %. This puts MACOM Technology Solutions Holdings in the upper half of its industry. The industry median Operating Margin % is 5.18. MACOM Technology Solutions Holdings' value of 17.59% is 239.6% above this benchmark. While the company's 10-year median is 7.67 vs. the industry median of 5.18, MACOM Technology Solutions Holdings 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. MACOM Technology Solutions Holdings's current Operating Margin % of 17.59% is 239.6% 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 MACOM Technology Solutions Holdings 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. MACOM Technology Solutions Holdings's current Operating Margin % is 17.59%, which is 129% above median its own 10-year median of 7.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MACOM Technology Solutions Holdings stock overvalued right now?
Based on GuruFocus' analysis, MACOM Technology Solutions Holdings (FRA:1MA) is currently considered Significantly Overvalued. The stock's GF Value™ is €146.70, compared to a current price of €320.00 — trading 118.1% above its estimated fair value. The current Operating Margin % is 17.59%, which is 129% above median its 10-year median of 7.67 and 239.6% above the Semiconductors industry median of 5.18. MACOM Technology Solutions Holdings' overall GF Score™ is 69/100 with 7 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 MACOM Technology Solutions Holdings (FRA:1MA), the current Operating Margin % is 17.59% 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 MACOM Technology Solutions Holdings (FRA:1MA) Overvalued in 2026?
Based on GuruFocus' analysis, MACOM Technology Solutions Holdings stock appears to be overvalued.
The current stock price of €320.00 is trading 118.1% above its estimated GF Value™ of €146.70.
GuruFocus considers MACOM Technology Solutions Holdings to be Significantly Overvalued.
Key valuation signals for FRA:1MA:
Operating Margin %: 17.59% (129% above median its 10-year median of 7.67)
GF Value™: €146.70 vs. price of €320.00 (118.1% above fair value)
Industry Position: 239.6% above the Semiconductors median (#257 of 1023)
No single metric tells the full story. See the FRA:1MA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MACOM Technology Solutions Holdings Business Description
MACOM Technology Solutions Holdings Inc is a provider of analog, digital, and mixed-signal semiconductor solutions to original equipment manufacturers and distributors. These solutions are found in systems for industrial, medical, scientific, and test and measurement markets. The firm's portfolio of products includes integrated circuits, multichip modules, power pallets and transistors, diodes, amplifiers, switches and switch limiters, passive and active components, and complete subsystems.
69GF Score
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