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Qnity ElectronicsSTU:Z5O 25 Operating Margin % is 22.25% as of Jun. 2026, which is 9% above its 10-year median of 20.44. GuruFocus rates STU:Z5O with a GF Score™ of 25/100. The stock has 2 warning signs investors should review. Among 1,026 Semiconductors companies, Qnity Electronics ranks better than 82.85% 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.
Qnity Electronics Operating Margin % Related Terms
Qnity Electronics Operating Margin % Historical Data
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The historical data trend for Qnity Electronics'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.
STU:Z5O vs ENTG, AMKR, NVMI: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Qnity Electronics'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.
Qnity Electronics Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Qnity Electronics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Qnity Electronics'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.
Qnity Electronics'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.
Qnity Electronics (STU:Z5O) has a Operating Margin % of 22.25% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Qnity Electronics and its competitors. This is near median its historical median of 20.44. Over the past decade, Qnity Electronics' Operating Margin % has ranged from 16.28 to 21.75. According to the industry distribution chart, Qnity Electronics ranks #176 out of 1026 companies in the Semiconductors industry, placing it in the top 17.2%.
Is Qnity Electronics' Operating Margin % too high?
Qnity Electronics' current Operating Margin % of 22.25% is near median its 10-year median of 20.44. Over the past 10 years, this metric has ranged from a low of 16.28 to a high of 21.75. The Semiconductors industry median Operating Margin % is 6.19. Qnity Electronics' value of 22.25% is 259.5% above this industry median. Based on the distribution chart, Qnity Electronics ranks #176 out of 1026 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Qnity Electronics has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does Qnity Electronics' Operating Margin % compare to ENTG and AMKR?
According to the Semiconductors industry distribution chart, Qnity Electronics ranks #176 out of 1026 companies for Operating Margin %. This places Qnity Electronics in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.19. Qnity Electronics' value of 22.25% is 259.5% above this benchmark. Historically, Qnity Electronics' own Operating Margin % has ranged from 16.28 to 21.75 over the past decade. While the company's 10-year median is 20.44 vs. the industry median of 6.19, Qnity Electronics 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 6.19, based on 1,026 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. Qnity Electronics's current Operating Margin % of 22.25% is 259.5% 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 Qnity Electronics and its competitors. For the Semiconductors industry, the median Operating Margin % is 6.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Qnity Electronics's current Operating Margin % is 22.25%, which is near median its own 10-year median of 20.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Qnity Electronics stock overvalued right now?
Qnity Electronics (STU:Z5O) has a current Operating Margin % of 22.25%. The current Operating Margin % is 22.25%, which is near median its 10-year median of 20.44 and 259.5% above the Semiconductors industry median of 6.19. Qnity Electronics' overall GF Score™ is 25/100 with 2 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 Qnity Electronics (STU:Z5O), the current Operating Margin % is 22.25% 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.
Qnity is a specialty chemicals company created in 2025 after being spun off from DuPont. It sells chemicals and materials to the semiconductor industry, which generates the majority of sales, and also the electronics industry. Qnity specializes in materials science, including supplying key materials required to manufacture semiconductors and interconnected devices.
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