SMTCNEUTRAL

Gross Margin

52.0%

Higher than 32% of Technology sector peers

Updated 22h ago

Sector Performance

32th percentile

SMTC

52.0%

Sector Median

65.2%

Sector Avg

60.6%

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Deep Analysis

Gross margin, the percentage of revenue left after subtracting the direct costs of producing goods, stands at 52.0% for Semtech.

This is notably below the technology sector median of 65.2%, placing the company in the 32nd percentile among its peers, indicating it retains a smaller portion of sales as gross profit compared to most competitors. The trend over the last eight quarters has been stable, with a quarter-over-quarter increase of +0.2% and no year-over-year change available to assess. The combination of a below-median level with a stable, slightly rising trend suggests limited immediate risk from margin deterioration but also no clear catalyst for improvement relative to the sector. This metric supports the overall NEUTRAL verdict because it neither signals a critical weakness that would justify a negative view nor shows enough strength to warrant a positive stance.

Frequently Asked Questions

What does the Gross Margin tell investors about SMTC?

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 SMTC's Gross Margin compare to its sector?

SMTC's Gross Margin of 52.0% compares to a Technology sector median of 65.2%, placing it in the 32th percentile.

Who are SMTC'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.