NXP Semiconductors NVNXPI +2.32%91 Operating Margin % is 27.79% as of Mar. 2026, which is 80% above its 10-year median of 15.45. GuruFocus rates NXPI with a GF Score™ of 91/100 and a GF Value™ of $231.15 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 1,023 Semiconductors companies, NXP Semiconductors NV ranks better than 90.13% 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.
NXP Semiconductors NV Operating Margin % Related Terms
NXP Semiconductors NV Operating Margin % Historical Data
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The historical data trend for NXP Semiconductors NV'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.
NXPI vs MPWR, ALAB, CBRS: Operating Margin % Comparison
For the Semiconductors subindustry, NXP Semiconductors NV'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.
NXP Semiconductors NV Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, NXP Semiconductors NV's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NXP Semiconductors NV'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.
NXP Semiconductors NV'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.
NXP Semiconductors NV (NXPI) has a Operating Margin % of 27.79% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on NXP Semiconductors NV and its competitors. This is 80% above median its historical median of 15.45. According to the industry distribution chart, NXP Semiconductors NV ranks #101 out of 1023 companies in the Semiconductors industry, placing it in the top 9.9%.
Is NXP Semiconductors NV's Operating Margin % too high?
NXP Semiconductors NV's current Operating Margin % of 27.79% is 80% above median its 10-year median of 15.45. The Semiconductors industry median Operating Margin % is 5.24. NXP Semiconductors NV's value of 27.79% is 430.3% above this industry median. Based on the distribution chart, NXP Semiconductors NV ranks #101 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, NXP Semiconductors NV has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does NXP Semiconductors NV's Operating Margin % compare to MPWR and ALAB?
According to the Semiconductors industry distribution chart, NXP Semiconductors NV ranks #101 out of 1023 companies for Operating Margin %. This places NXP Semiconductors NV in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. NXP Semiconductors NV's value of 27.79% is 430.3% above this benchmark. While the company's 10-year median is 15.45 vs. the industry median of 5.24, NXP Semiconductors NV 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. NXP Semiconductors NV's current Operating Margin % of 27.79% is 430.3% 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 NXP Semiconductors NV 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. NXP Semiconductors NV's current Operating Margin % is 27.79%, which is 80% above median its own 10-year median of 15.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NXP Semiconductors NV stock overvalued right now?
Based on GuruFocus' analysis, NXP Semiconductors NV (NXPI) is currently considered Modestly Overvalued. The stock's GF Value™ is $231.15, compared to a current price of $300.89 — trading 30.2% above its estimated fair value. The current Operating Margin % is 27.79%, which is 80% above median its 10-year median of 15.45 and 430.3% above the Semiconductors industry median of 5.24. NXP Semiconductors NV's overall GF Score™ is 91/100 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 NXP Semiconductors NV (NXPI), the current Operating Margin % is 27.79% 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 NXP Semiconductors NV (NXPI) Overvalued in 2026?
Based on GuruFocus' analysis, NXP Semiconductors NV stock appears to be overvalued.
The current stock price of $300.89 is trading 30.2% above its estimated GF Value™ of $231.15.
GuruFocus considers NXP Semiconductors NV to be Modestly Overvalued.
Key valuation signals for NXPI:
Operating Margin %: 27.79% (80% above median its 10-year median of 15.45)
GF Value™: $231.15 vs. price of $300.89 (30.2% above fair value)
Industry Position: 430.3% above the Semiconductors median (#101 of 1023)
No single metric tells the full story. See the NXPI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
NXP Semiconductors is a leading supplier of high-performance mixed-signal products. The firm acquired Freescale Semiconductor in 2015 and now has significant market share in the automotive market, where it supplies microcontrollers and analog chips into automotive clusters, powertrains, infotainment systems, and radars. NXP Semiconductors also serves industrial and Internet of Things, mobile, and communications infrastructure.
91GF Score
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