Lontium SemiconductorSHSE:688486 +3.39%95 Operating Margin % is 26.27% as of Mar. 2026, which is 6% below its 10-year median of 27.80. GuruFocus rates SHSE:688486 with a GF Score™ of 95/100 and a GF Value™ of ¥69.53 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,023 Semiconductors companies, Lontium Semiconductor ranks better than 92.77% on this metric.
Lontium Semiconductor Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Lontium Semiconductor's Operating Margin % or its related term are showing as below:
SHSE:688486'
s Operating Margin % Range Over the Past 10 Years
Min: 18.48 Med: 27.8 Max: 36.12
Current: 28.9
SHSE:688486's Operating Margin % is ranked better than 92.77% of 1023
companies
in the Semiconductors industry
Industry Median: 5.24
vs SHSE:688486: 28.90
Lontium Semiconductor's 5-Year Average Operating Margin % Growth Rate was 0.80% per year.
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.
Lontium Semiconductor Operating Margin % Related Terms
Lontium Semiconductor Operating Margin % Historical Data
* Premium members only.
The historical data trend for Lontium Semiconductor'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:688486 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Lontium Semiconductor'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.
Lontium Semiconductor Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Lontium Semiconductor's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lontium Semiconductor'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.
Lontium Semiconductor'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.
Lontium Semiconductor (SHSE:688486) has a Operating Margin % of 26.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lontium Semiconductor and its competitors. This is near median its historical median of 27.80. Over the past decade, Lontium Semiconductor's Operating Margin % has ranged from 18.48 to 36.12. According to the industry distribution chart, Lontium Semiconductor ranks #74 out of 1023 companies in the Semiconductors industry, placing it in the top 7.2%.
Is Lontium Semiconductor's Operating Margin % too high?
Lontium Semiconductor's current Operating Margin % of 26.27% is near median its 10-year median of 27.80. Over the past 10 years, this metric has ranged from a low of 18.48 to a high of 36.12. The Semiconductors industry median Operating Margin % is 5.24. Lontium Semiconductor's value of 26.27% is 401.3% above this industry median. Based on the distribution chart, Lontium Semiconductor ranks #74 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Lontium Semiconductor has a GF Score™ of 95/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lontium Semiconductor's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Lontium Semiconductor ranks #74 out of 1023 companies for Operating Margin %. This places Lontium Semiconductor in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Lontium Semiconductor's value of 26.27% is 401.3% above this benchmark. Historically, Lontium Semiconductor's own Operating Margin % has ranged from 18.48 to 36.12 over the past decade. While the company's 10-year median is 27.80 vs. the industry median of 5.24, Lontium Semiconductor 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. Lontium Semiconductor's current Operating Margin % of 26.27% is 401.3% 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 Lontium Semiconductor 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. Lontium Semiconductor's current Operating Margin % is 26.27%, which is near median its own 10-year median of 27.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lontium Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Lontium Semiconductor (SHSE:688486) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥69.53, compared to a current price of ¥58.30 — trading 16.2% below its estimated fair value. The current Operating Margin % is 26.27%, which is near median its 10-year median of 27.80 and 401.3% above the Semiconductors industry median of 5.24. Lontium Semiconductor's overall GF Score™ is 95/100 with 4 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 Lontium Semiconductor (SHSE:688486), the current Operating Margin % is 26.27% 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 Lontium Semiconductor (SHSE:688486) Overvalued in 2026?
Based on GuruFocus' analysis, Lontium Semiconductor stock appears to be undervalued.
The current stock price of ¥58.30 is trading 16.2% below its estimated GF Value™ of ¥69.53.
GuruFocus considers Lontium Semiconductor to be Modestly Undervalued.
Key valuation signals for SHSE:688486:
Operating Margin %: 26.27% (near median its 10-year median of 27.80)
GF Value™: ¥69.53 vs. price of ¥58.30 (16.2% below fair value)
Industry Position: 401.3% above the Semiconductors median (#74 of 1023)
No single metric tells the full story. See the SHSE:688486 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AddressNo. 3963, Susong Road, Building B3, Intelligent Equipment Science and Technology Park, Economic and Technological Development Zone, Anhui Province, Hefei, CHN, 230601
Lontium Semiconductor Corp is engaged in the developing and marketing high-speed interface chips, embedded GPUs and ultra high-definition display drivers targeted for wide range high-definition multi-media applications. Its products include HDMI V1.3/V1.4/2.0/2.1 chipset, Displayport 1.2/1.4 chipset, USB 2.0, USB3.1 Type C chipset, MIPI chipset, LVDS chipset, VGA and LCD/TV controller and driver serving applications from PCs, notebooks, smartphones, TVs, monitors, automobiles to VR and accessories. The company's high-speed interface IPs and a wide range mixed-signal IPs on leading edge manufacturing technology serve various SoC vendors worldwide.
95GF Score
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