SITMNEUTRAL

Gross Margin

59.0%

Higher than 46% of Technology sector peers

Updated 22h ago

Sector Performance

46th percentile

SITM

59.0%

Sector Median

65.2%

Sector Avg

60.6%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after covering the cost of making its products; SiTime’s current 59.0% means it retains $0.59 of every dollar of sales before other expenses.

This sits below the Technology sector median of 65.2% and places the company at the 46th percentile among sector peers, indicating its profitability on sales is slightly weaker than the typical peer. No historical data, year-over-year change, or quarter-over-quarter change is available, so the trend is marked as N/A—there is no directional signal from recent performance. The combination of a below-median gross margin with an unknown trend introduces ambiguity: the current level suggests less pricing power or higher production costs than the median peer, while the lack of trend data prevents assessing whether this is improving or worsening. This metric neither strengthens nor weakens the overall NEUTRAL verdict, as the gross margin is a slight underperformance but remains within a typical range, and the absence of trend information leaves the picture incomplete.

Frequently Asked Questions

What does the Gross Margin tell investors about SITM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does SITM's Gross Margin compare to its sector?

SITM's Gross Margin of 59.0% compares to a Technology sector median of 65.2%, placing it in the 46th percentile.

Who are SITM's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: LYFT (47.6%), COHU (46.3%), UBER (45.0%), LSPD (44.4%), GRAB (43.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.