Montage Technology CoSHSE:688008 -6.21%84 Operating Margin % is 46.26% as of Mar. 2026, which is 53% above its 10-year median of 30.25. GuruFocus rates SHSE:688008 with a GF Score™ of 84/100 and a GF Value™ of ¥131.83 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,021 Semiconductors companies, Montage Technology Co ranks better than 96.96% on this metric.
Montage Technology Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.1%.
The historical rank and industry rank for Montage Technology Co's Operating Margin % or its related term are showing as below:
SHSE:688008'
s Operating Margin % Range Over the Past 10 Years
Min: 15.34 Med: 30.25 Max: 51.03
Current: 37.83
SHSE:688008's Operating Margin % is ranked better than 96.96% of 1021
companies
in the Semiconductors industry
Industry Median: 5.24
vs SHSE:688008: 37.83
Montage Technology Co's 5-Year Average Operating Margin % Growth Rate was -3.10% per year.
Montage Technology Co (SHSE:688008) 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.
Montage Technology Co Operating Margin % Related Terms
Montage Technology Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Montage Technology Co'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.
SHSE:688008 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Montage Technology Co'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.
Montage Technology Co Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Montage Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Montage Technology Co's Operating Margin % falls into.
Montage Technology Co Operating Margin % Calculation
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.
Montage Technology Co'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.
Montage Technology Co (SHSE:688008) has a Operating Margin % of 46.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Montage Technology Co and its competitors. This is 53% above median its historical median of 30.25. Over the past decade, Montage Technology Co's Operating Margin % has ranged from 15.34 to 51.03. According to the industry distribution chart, Montage Technology Co ranks #31 out of 1021 companies in the Semiconductors industry, placing it in the top 3%.
Is Montage Technology Co's Operating Margin % too high?
Montage Technology Co's current Operating Margin % of 46.26% is 53% above median its 10-year median of 30.25. Over the past 10 years, this metric has ranged from a low of 15.34 to a high of 51.03. The Semiconductors industry median Operating Margin % is 5.24. Montage Technology Co's value of 46.26% is 782.8% above this industry median. Based on the distribution chart, Montage Technology Co ranks #31 out of 1021 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Montage Technology Co has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Montage Technology Co's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Montage Technology Co ranks #31 out of 1021 companies for Operating Margin %. This places Montage Technology Co in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Montage Technology Co's value of 46.26% is 782.8% above this benchmark. Historically, Montage Technology Co's own Operating Margin % has ranged from 15.34 to 51.03 over the past decade. While the company's 10-year median is 30.25 vs. the industry median of 5.24, Montage Technology Co 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 1,021 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. Montage Technology Co's current Operating Margin % of 46.26% is 782.8% 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 Montage Technology Co 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. Montage Technology Co's current Operating Margin % is 46.26%, which is 53% above median its own 10-year median of 30.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Montage Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Montage Technology Co (SHSE:688008) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥131.83, compared to a current price of ¥261.82 — trading 98.6% above its estimated fair value. The current Operating Margin % is 46.26%, which is 53% above median its 10-year median of 30.25 and 782.8% above the Semiconductors industry median of 5.24. Montage Technology Co's overall GF Score™ is 84/100 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 Montage Technology Co (SHSE:688008), the current Operating Margin % is 46.26% 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 Montage Technology Co (SHSE:688008) Overvalued in 2026?
Based on GuruFocus' analysis, Montage Technology Co stock appears to be overvalued.
The current stock price of ¥261.82 is trading 98.6% above its estimated GF Value™ of ¥131.83.
GuruFocus considers Montage Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:688008:
Operating Margin %: 46.26% (53% above median its 10-year median of 30.25)
GF Value™: ¥131.83 vs. price of ¥261.82 (98.6% above fair value)
Industry Position: 782.8% above the Semiconductors median (#31 of 1021)
No single metric tells the full story. See the SHSE:688008 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Montage Technology Co Ltd provides chip-based solutions for cloud computing and artificial intelligence. The company operates two main product lines: interconnection chips and the Jindai Server Platform. Its interconnection chip portfolio covers memory interface chips, memory module support chips, PCIe retimers, and related products. The Jindai Server Platform includes the Jindai CPU and Hybrid Secure Memory Module. Geographically, company operates in Mainland China and Hong Kong and others segment.
84GF Score
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