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SiTimeSITM +5.40%74 Operating Margin % is 10.62% as of Jun. 2026. GuruFocus rates SITM with a GF Score™ of 74/100 and a GF Value™ of $453.98 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,022 Semiconductors companies, SiTime ranks worse than 64.29% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SiTime's Operating Income for the
three
months ended in Jun. 2026 was $16.7 Mil. SiTime's Revenue for the
three
months ended in Jun. 2026 was $157.4 Mil. Therefore, SiTime's Operating Margin % for the quarter that ended in Jun. 2026 was 10.62%.
The historical rank and industry rank for SiTime's Operating Margin % or its related term are showing as below:
SITM'
s Operating Margin % Range Over the Past 10 Years
Min: -69.08 Med: -7.42 Max: 15.01
Current: 0.19
SITM's Operating Margin % is ranked worse than 64.29% of 1022
companies
in the Semiconductors industry
Industry Median: 5.59
vs SITM: 0.19
SiTime's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
SiTime's Operating Income for the
three
months ended in Jun. 2026 was $16.7 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was $0.9 Mil.
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.
SiTime Operating Margin % Related Terms
SiTime Operating Margin % Historical Data
* Premium members only.
The historical data trend for SiTime'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.
SITM vs LSCC, MTSI, SMTC: Operating Margin % Comparison
For the Semiconductors subindustry, SiTime'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.
SiTime Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, SiTime's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SiTime'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.
SiTime'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.
SiTime (SITM) has a Operating Margin % of 10.62% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SiTime and its competitors. According to the industry distribution chart, SiTime ranks #657 out of 1022 companies in the Semiconductors industry, placing it in the top 64.3%.
Is SiTime's Operating Margin % too high?
SiTime's current Operating Margin % is 10.62%. The Semiconductors industry median Operating Margin % is 5.59. SiTime's value of 10.62% is 90% above this industry median. Based on the distribution chart, SiTime ranks #657 out of 1022 companies in the Semiconductors industry, which is below the industry midpoint. Overall, SiTime has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SiTime's Operating Margin % compare to LSCC and MTSI?
According to the Semiconductors industry distribution chart, SiTime ranks #657 out of 1022 companies for Operating Margin %. This places SiTime in the lower half of its industry. The industry median Operating Margin % is 5.59. SiTime's value of 10.62% is 90% above this benchmark. 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 5.59, based on 1,022 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. SiTime's current Operating Margin % of 10.62% is 90% 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 SiTime and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SiTime's current Operating Margin % is 10.62%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SiTime stock overvalued right now?
Based on GuruFocus' analysis, SiTime (SITM) is currently considered Significantly Overvalued. The stock's GF Value™ is $453.98, compared to a current price of $725.28 — trading 59.8% above its estimated fair value. The current Operating Margin % is 10.62% and 90% above the Semiconductors industry median of 5.59. SiTime's overall GF Score™ is 74/100 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 SiTime (SITM), the current Operating Margin % is 10.62% as of Jun. 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 SiTime (SITM) Overvalued in 2026?
Based on GuruFocus' analysis, SiTime stock appears to be overvalued.
The current stock price of $725.28 is trading 59.8% above its estimated GF Value™ of $453.98.
GuruFocus considers SiTime to be Significantly Overvalued.
Key valuation signals for SITM:
Operating Margin %: 10.62%
GF Value™: $453.98 vs. price of $725.28 (59.8% above fair value)
Industry Position: 90% above the Semiconductors median (#657 of 1022)
No single metric tells the full story. See the SITM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SiTime Corp is a provider of Precision Timing solutions to the international electronics industry, providing the timing functionality needed for electronics to operate reliably and correctly. The Company's products are designed to address a wide range of applications across a broad array of end markets. The Company operates a fabless business model and leverages its international network of distributors to address the end markets it serves. The Company operates in one reportable segment related to the design, development, and sale of silicon timing systems solutions. It operates in Hong Kong, Taiwan, the United States, Singapore, and other regions, with the majority of revenue coming from Hong Kong.
74GF Score
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