IQELSE:IQE -5.64%42 Operating Margin % is -20.43% as of Dec. 2025. GuruFocus rates LSE:IQE with a GF Score™ of 42/100 and a GF Value™ of £0.10 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,023 Semiconductors companies, IQE ranks worse than 86.41% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. IQE's Operating Income for the
six
months ended in Dec. 2025 was £-10.63 Mil. IQE's Revenue for the
six
months ended in Dec. 2025 was £52.05 Mil. Therefore, IQE's Operating Margin % for the quarter that ended in Dec. 2025 was -20.43%.
Warning Sign:
IQE PLC operating margin has been in a 5-year decline. The average rate of decline per year is -89.2%.
The historical rank and industry rank for IQE's Operating Margin % or its related term are showing as below:
LSE:IQE'
s Operating Margin % Range Over the Past 10 Years
Min: -27.14 Med: -5.56 Max: 14.98
Current: -27.14
LSE:IQE's Operating Margin % is ranked worse than 86.41% of 1023
companies
in the Semiconductors industry
Industry Median: 5.24
vs LSE:IQE: -27.14
IQE's 5-Year Average Operating Margin % Growth Rate was -89.20% per year.
IQE's Operating Income for the
six
months ended in Dec. 2025 was £-10.63 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £-26.41 Mil.
Warning Sign:
IQE PLC has never been profitable in the past 3 years. It lost money every year.
IQE (LSE:IQE) 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.
IQE Operating Margin % Related Terms
IQE Operating Margin % Historical Data
* Premium members only.
The historical data trend for IQE'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.
LSE:IQE vs LRCX, AMAT, KLAC: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, IQE'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.
IQE Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, IQE's Operating Margin % distribution charts can be found below:
* The bar in red indicates where IQE'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.
IQE'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.
IQE (LSE:IQE) has a Operating Margin % of -20.43% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on IQE and its competitors. According to the industry distribution chart, IQE ranks #884 out of 1023 companies in the Semiconductors industry, placing it in the top 86.4%.
Is IQE's Operating Margin % too high?
IQE's current Operating Margin % is -20.43%. Based on the distribution chart, IQE ranks #884 out of 1023 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, IQE has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IQE's Operating Margin % compare to LRCX and AMAT?
According to the Semiconductors industry distribution chart, IQE ranks #884 out of 1023 companies for Operating Margin %. This places IQE in the lower half of its industry. The industry median Operating Margin % is 5.24. 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 5.24, 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. 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 IQE and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IQE's current Operating Margin % is -20.43%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IQE stock overvalued right now?
Based on GuruFocus' analysis, IQE (LSE:IQE) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.10, compared to a current price of £0.49 — trading 385% above its estimated fair value. The current Operating Margin % is -20.43%. IQE's overall GF Score™ is 42/100 with 10 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 IQE (LSE:IQE), the current Operating Margin % is -20.43% as of Dec. 2025. 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 IQE (LSE:IQE) Overvalued in 2026?
Based on GuruFocus' analysis, IQE stock appears to be overvalued.
The current stock price of £0.49 is trading 385% above its estimated GF Value™ of £0.10.
GuruFocus considers IQE to be Significantly Overvalued.
Key valuation signals for LSE:IQE:
Operating Margin %: -20.43%
GF Value™: £0.10 vs. price of £0.49 (385% above fair value)
No single metric tells the full story. See the LSE:IQE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IQE PLC is engaged in the research, design, development, manufacture, and sale of compound semiconductor materials. Its operating segments include Wireless, which manufactures and sells compound semiconductor materials for the wireless market, including radio frequency devices that enable wireless communications; Photonics, which manufactures and sells compound semiconductor materials for the photonics market, including applications that transmit or sense visible and infrared light; and CMOS++, which manufactures and sells semiconductor materials related to silicon and combines the properties of compound semiconductors with lower-cost silicon technologies. The Photonics segment generates the majority of revenue, and the Company generates the majority of its revenue from the USA.
42GF Score
Get the complete analysis for LSE:IQE
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:IQE has been successfully added to your 
