VLN (Valens Semiconductor) Operating Margin %: -54.69% (As of Mar. 2026)


VLN Valens Semiconductor Ltd VLN
71 GF Score
Price $2.02
GF Value $2.08
Valuation Fairly Valued
! 6 Warning Signs
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What is Valens Semiconductor Operating Margin %?

Valens Semiconductor VLN -7.34% 71 Operating Margin % is -54.69% as of Mar. 2026. GuruFocus rates VLN with a GF Score™ of 71/100 and a GF Value™ of $2.08 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,023 Semiconductors companies, Valens Semiconductor ranks worse than 91.1% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Valens Semiconductor's Operating Income for the three months ended in Mar. 2026 was $-9.22 Mil. Valens Semiconductor's Revenue for the three months ended in Mar. 2026 was $16.86 Mil. Therefore, Valens Semiconductor's Operating Margin % for the quarter that ended in Mar. 2026 was -54.69%.

Warning Sign:

Valens Semiconductor Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.4%.

The historical rank and industry rank for Valens Semiconductor's Operating Margin % or its related term are showing as below:

VLN' s Operating Margin % Range Over the Past 10 Years
Min: -70.8   Med: -40.04   Max: -31.27
Current: -48.35


VLN's Operating Margin % is ranked worse than
91.1% of 1023 companies
in the Semiconductors industry
Industry Median: 5.18 vs VLN: -48.35

Valens Semiconductor's 5-Year Average Operating Margin % Growth Rate was -8.40% per year.

Valens Semiconductor's Operating Income for the three months ended in Mar. 2026 was $-9.22 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $-34.16 Mil.


Valens Semiconductor  (NYSE:VLN) 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 Nokia’s 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.


Valens Semiconductor Operating Margin % Related Terms


Valens Semiconductor Operating Margin % Historical Data

* Premium members only.

The historical data trend for Valens 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.

Valens Semiconductor Operating Margin % Chart

Valens Semiconductor Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial -38.29 -31.27 -31.98 -70.80 -48.46

Valens Semiconductor Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -55.16 -48.22 -42.07 -48.56 -54.69

VLN vs QUIK, GSIT, ALMU: Operating Margin % Comparison

For the Semiconductors subindustry, Valens 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.


Valens Semiconductor Operating Margin % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Valens Semiconductor's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Valens Semiconductor's Operating Margin % falls into.


VLN
71GF Score
Valens Semiconductor Ltd VLN
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Valens Semiconductor 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.

Valens Semiconductor's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-34.224 / 70.625
=-48.46 %

Valens Semiconductor's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-9.22 / 16.859
=-54.69 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -54.69% mean?
Valens Semiconductor (VLN) has a Operating Margin % of -54.69% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Valens Semiconductor and its competitors. According to the industry distribution chart, Valens Semiconductor ranks #932 out of 1023 companies in the Semiconductors industry, placing it in the top 91.1%.
Is Valens Semiconductor's Operating Margin % too high?
Valens Semiconductor's current Operating Margin % is -54.69%. Based on the distribution chart, Valens Semiconductor ranks #932 out of 1023 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Valens Semiconductor has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Valens Semiconductor's Operating Margin % compare to QUIK and GSIT?
According to the Semiconductors industry distribution chart, Valens Semiconductor ranks #932 out of 1023 companies for Operating Margin %. This places Valens Semiconductor in the lower half of its industry. The industry median Operating Margin % is 5.18. 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 5.18, 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. 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 Valens Semiconductor and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Valens Semiconductor's current Operating Margin % is -54.69%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Valens Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Valens Semiconductor (VLN) is currently considered Fairly Valued. The stock's GF Value™ is $2.08, compared to a current price of $2.02 — trading 2.9% below its estimated fair value. The current Operating Margin % is -54.69%. Valens Semiconductor's overall GF Score™ is 71/100 with 6 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 Valens Semiconductor (VLN), the current Operating Margin % is -54.69% 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 Valens Semiconductor (VLN) Overvalued in 2026?

Based on GuruFocus' analysis, Valens Semiconductor stock appears to be undervalued. The current stock price of $2.02 is trading 2.9% below its estimated GF Value™ of $2.08. GuruFocus considers Valens Semiconductor to be Fairly Valued.

Key valuation signals for VLN:

  • Operating Margin %: -54.69%
  • GF Value™: $2.08 vs. price of $2.02 (2.9% below fair value)
  • GF Score™: 71/100 with 6 warning signs

No single metric tells the full story. See the VLN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Valens Semiconductor Business Description

Address 8 Hanagar Street, PO Box 7152, Hod Hasharon, ISR, 4501309
Valens Semiconductor Ltd is a provider of semiconductor products, pushing the boundaries of connectivity by enabling long-reach, high-speed video, and data transmission for the audio-video and automotive industries. It operates in two segments: Cross Industry Business, which includes solutions for the non-automotive verticals, including audio-video, industrial, machine vision and medical markets, that deliver superior, plug-and-play convergence and distribution of different interfaces, through a single long-distance category cable; and Automotive segment products enable safe and resilient high-speed in-vehicle connectivity for car architectures, realizing the vision of connected and autonomous cars. The company's geographical revenue is derived from Hungary.
71GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$2.02
Price
$2.08
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