SemtechMEX:SMTC 55 Pretax Margin % is 8.63% as of Apr. 2026, which is 15% below its 10-year median of 10.10. GuruFocus rates MEX:SMTC with a GF Score™ of 55/100 and a GF Value™ of MXN724.19 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,021 Semiconductors companies, Semtech ranks worse than 66.01% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Semtech's Pre-Tax Income for the
three
months ended in Apr. 2026 was MXN440 Mil. Semtech's Revenue for the
three
months ended in Apr. 2026 was MXN5,097 Mil. Therefore, Semtech's pretax margin for the quarter that ended in Apr. 2026 was 8.63%.
The historical rank and industry rank for Semtech's Pretax Margin % or its related term are showing as below:
MEX:SMTC'
s Pretax Margin % Range Over the Past 10 Years
Min: -119.89 Med: 10.1 Max: 18.77
Current: -2.12
MEX:SMTC's Pretax Margin % is ranked worse than 66.01% of 1021
companies
in the Semiconductors industry
Industry Median: 5.07
vs MEX:SMTC: -2.12
Semtech (MEX:SMTC) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Semtech Pretax Margin % Related Terms
Semtech Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Semtech's Pretax 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.
MEX:SMTC vs RMBS, SWKS, SITM: Pretax Margin % Comparison
For the Semiconductors subindustry, Semtech's Pretax Margin %, along with its competitors' market caps and Pretax 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.
Semtech Pretax Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Semtech's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Semtech's Pretax Margin % falls into.
* 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.
Semtech (MEX:SMTC) has a Pretax Margin % of 8.63% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Semtech and its competitors. This is 15% below median its historical median of 10.10. According to the industry distribution chart, Semtech ranks #674 out of 1021 companies in the Semiconductors industry, placing it in the top 66%.
Is Semtech's Pretax Margin % too high?
Semtech's current Pretax Margin % of 8.63% is 15% below median its 10-year median of 10.10. The Semiconductors industry median Pretax Margin % is 5.07. Semtech's value of 8.63% is 70.2% above this industry median. Based on the distribution chart, Semtech ranks #674 out of 1021 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Semtech has a GF Score™ of 55/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Semtech's Pretax Margin % compare to RMBS and SWKS?
According to the Semiconductors industry distribution chart, Semtech ranks #674 out of 1021 companies for Pretax Margin %. This places Semtech in the lower half of its industry. The industry median Pretax Margin % is 5.07. Semtech's value of 8.63% is 70.2% above this benchmark. While the company's 10-year median is 10.10 vs. the industry median of 5.07, Semtech 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 Pretax Margin % for a Semiconductors company?
The median Pretax Margin % among Semiconductors companies is 5.07, based on 1,021 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Semtech's current Pretax Margin % of 8.63% is 70.2% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Semtech and its competitors. For the Semiconductors industry, the median Pretax Margin % is 5.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Semtech's current Pretax Margin % is 8.63%, which is 15% below median its own 10-year median of 10.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Semtech stock overvalued right now?
Based on GuruFocus' analysis, Semtech (MEX:SMTC) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN724.19, compared to a current price of MXN2,863.00 — trading 295.3% above its estimated fair value. The current Pretax Margin % is 8.63%, which is 15% below median its 10-year median of 10.10 and 70.2% above the Semiconductors industry median of 5.07. Semtech's overall GF Score™ is 55/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Semtech (MEX:SMTC), the current Pretax Margin % is 8.63% as of Apr. 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 Semtech (MEX:SMTC) Overvalued in 2026?
Based on GuruFocus' analysis, Semtech stock appears to be overvalued.
The current stock price of MXN2,863.00 is trading 295.3% above its estimated GF Value™ of MXN724.19.
GuruFocus considers Semtech to be Significantly Overvalued.
Key valuation signals for MEX:SMTC:
Pretax Margin %: 8.63% (15% below median its 10-year median of 10.10)
GF Value™: MXN724.19 vs. price of MXN2,863.00 (295.3% above fair value)
Industry Position: 70.2% above the Semiconductors median (#674 of 1021)
No single metric tells the full story. See the MEX:SMTC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Semtech Corp is a provider of high-performance semiconductors powering data center networking, Internet of Things ("IoT") connectivity, and cellular infrastructure solutions. The company designs, develops, manufactures, and markets a diverse portfolio of products for commercial applications, addressing the infrastructure, high-end consumer, and industrial end markets. The company operates in four reportable segments: Signal Integrity, Analog Mixed Signal and Wireless, IoT Systems, and Connected Services. The majority of the company's revenue is earned through the Analog Mixed Signal and Wireless segment. Geographically, the majority of the company's revenue is earned from the Asia Pacific region; the company also operates in North America and Europe.
55GF Score
Get the complete analysis for MEX:SMTC
Pretax Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:SMTC has been successfully added to your 
