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Power IntegrationsFRA:PWI -0.94%86 Operating Margin % is 7.07% as of Mar. 2026, which is 45% below its 10-year median of 12.95. GuruFocus rates FRA:PWI with a GF Score™ of 86/100 and a GF Value™ of €57.40 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,022 Semiconductors companies, Power Integrations ranks worse than 59.1% on this metric.
Power Integrations (FRA:PWI) 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.
Power Integrations Operating Margin % Related Terms
Power Integrations Operating Margin % Historical Data
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The historical data trend for Power Integrations's Operating 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.
FRA:PWI vs PI, LASR, DIOD: Operating Margin % Comparison
For the Semiconductors subindustry, Power Integrations'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.
Power Integrations Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Power Integrations's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Power Integrations'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.
Power Integrations'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.
Power Integrations (FRA:PWI) has a Operating Margin % of 7.07% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Power Integrations and its competitors. This is 45% below median its historical median of 12.95. Over the past decade, Power Integrations' Operating Margin % has ranged from 2.30 to 27.71. According to the industry distribution chart, Power Integrations ranks #604 out of 1022 companies in the Semiconductors industry, placing it in the top 59.1%.
Is Power Integrations' Operating Margin % too high?
Power Integrations' current Operating Margin % of 7.07% is 45% below median its 10-year median of 12.95. Over the past 10 years, this metric has ranged from a low of 2.30 to a high of 27.71. The Semiconductors industry median Operating Margin % is 5.63. Power Integrations' value of 7.07% is 25.7% above this industry median. Based on the distribution chart, Power Integrations ranks #604 out of 1022 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Power Integrations has a GF Score™ of 86/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Power Integrations' Operating Margin % compare to PI and LASR?
According to the Semiconductors industry distribution chart, Power Integrations ranks #604 out of 1022 companies for Operating Margin %. This places Power Integrations in the lower half of its industry. The industry median Operating Margin % is 5.63. Power Integrations' value of 7.07% is 25.7% above this benchmark. Historically, Power Integrations' own Operating Margin % has ranged from 2.30 to 27.71 over the past decade. While the company's 10-year median is 12.95 vs. the industry median of 5.63, Power Integrations 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 5.63, based on 1,022 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. Power Integrations's current Operating Margin % of 7.07% is 25.7% 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 Power Integrations and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power Integrations's current Operating Margin % is 7.07%, which is 45% below median its own 10-year median of 12.95. 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 (FRA:PWI) is currently considered Fairly Valued. The stock's GF Value™ is €57.40, compared to a current price of €52.62 — trading 8.3% below its estimated fair value. The current Operating Margin % is 7.07%, which is 45% below median its 10-year median of 12.95 and 25.7% above the Semiconductors industry median of 5.63. Power Integrations' overall GF Score™ is 86/100 with 6 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 Power Integrations (FRA:PWI), the current Operating Margin % is 7.07% 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 (FRA:PWI) Overvalued in 2026?
Based on GuruFocus' analysis, Power Integrations stock appears to be undervalued.
The current stock price of €52.62 is trading 8.3% below its estimated GF Value™ of €57.40.
GuruFocus considers Power Integrations to be Fairly Valued.
Key valuation signals for FRA:PWI:
Operating Margin %: 7.07% (45% below median its 10-year median of 12.95)
GF Value™: €57.40 vs. price of €52.62 (8.3% below fair value)
Industry Position: 25.7% above the Semiconductors median (#604 of 1022)
No single metric tells the full story. See the FRA:PWI 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.
86GF Score
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