SemtechMEX:SMTC 55 Operating Margin % is 9.28% as of Apr. 2026, which is 20% below its 10-year median of 11.55. GuruFocus rates MEX:SMTC with a GF Score™ of 55/100 and a GF Value™ of MXN724.19 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,023 Semiconductors companies, Semtech ranks better than 63.34% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Semtech's Operating Income for the
three
months ended in Apr. 2026 was MXN473 Mil. Semtech's Revenue for the
three
months ended in Apr. 2026 was MXN5,097 Mil. Therefore, Semtech's Operating Margin % for the quarter that ended in Apr. 2026 was 9.28%.
The historical rank and industry rank for Semtech's Operating Margin % or its related term are showing as below:
MEX:SMTC'
s Operating Margin % Range Over the Past 10 Years
Min: -14.43 Med: 11.55 Max: 19.57
Current: 10.39
MEX:SMTC's Operating Margin % is ranked better than 63.34% of 1023
companies
in the Semiconductors industry
Industry Median: 5.24
vs MEX:SMTC: 10.39
Semtech's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Semtech's Operating Income for the
three
months ended in Apr. 2026 was MXN473 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was MXN2,046 Mil.
Semtech (MEX:SMTC) 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.
Semtech Operating Margin % Related Terms
Semtech Operating Margin % Historical Data
* Premium members only.
The historical data trend for Semtech'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.
MEX:SMTC vs RMBS, SWKS, SITM: Operating Margin % Comparison
For the Semiconductors subindustry, Semtech'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.
Semtech Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Semtech's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Semtech'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.
Semtech's Operating Margin % for the fiscal year that ended in Jan. 2026 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.
Semtech (MEX:SMTC) has a Operating Margin % of 9.28% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Semtech and its competitors. This is 20% below median its historical median of 11.55. According to the industry distribution chart, Semtech ranks #375 out of 1023 companies in the Semiconductors industry, placing it in the top 36.7%.
Is Semtech's Operating Margin % too high?
Semtech's current Operating Margin % of 9.28% is 20% below median its 10-year median of 11.55. The Semiconductors industry median Operating Margin % is 5.24. Semtech's value of 9.28% is 77.1% above this industry median. Based on the distribution chart, Semtech ranks #375 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Semtech has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semtech's Operating Margin % compare to RMBS and SWKS?
According to the Semiconductors industry distribution chart, Semtech ranks #375 out of 1023 companies for Operating Margin %. This puts Semtech in the upper half of its industry. The industry median Operating Margin % is 5.24. Semtech's value of 9.28% is 77.1% above this benchmark. While the company's 10-year median is 11.55 vs. the industry median of 5.24, Semtech 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 5.24, 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. Semtech's current Operating Margin % of 9.28% is 77.1% 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 Semtech 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. Semtech's current Operating Margin % is 9.28%, which is 20% below median its own 10-year median of 11.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semtech stock overvalued right now?
Based on GuruFocus' analysis, Semtech (MEX:SMTC) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN724.19, compared to a current price of MXN2,863.00 — trading 295.3% above its estimated fair value. The current Operating Margin % is 9.28%, which is 20% below median its 10-year median of 11.55 and 77.1% above the Semiconductors industry median of 5.24. Semtech's overall GF Score™ is 55/100 with 8 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 Semtech (MEX:SMTC), the current Operating Margin % is 9.28% as of Apr. 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 Semtech (MEX:SMTC) Overvalued in 2026?
Based on GuruFocus' analysis, Semtech stock appears to be overvalued.
The current stock price of MXN2,863.00 is trading 295.3% above its estimated GF Value™ of MXN724.19.
GuruFocus considers Semtech to be Significantly Overvalued.
Key valuation signals for MEX:SMTC:
Operating Margin %: 9.28% (20% below median its 10-year median of 11.55)
GF Value™: MXN724.19 vs. price of MXN2,863.00 (295.3% above fair value)
Industry Position: 77.1% above the Semiconductors median (#375 of 1023)
No single metric tells the full story. See the MEX:SMTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semtech Corp is a provider of high-performance semiconductors powering data center networking, Internet of Things ("IoT") connectivity, and cellular infrastructure solutions. The company designs, develops, manufactures, and markets a diverse portfolio of products for commercial applications, addressing the infrastructure, high-end consumer, and industrial end markets. The company operates in four reportable segments: Signal Integrity, Analog Mixed Signal and Wireless, IoT Systems, and Connected Services. The majority of the company's revenue is earned through the Analog Mixed Signal and Wireless segment. Geographically, the majority of the company's revenue is earned from the Asia Pacific region; the company also operates in North America and Europe.
55GF Score
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