SMTCCAUTIOUS

SMTC Gross Margin Analysis

52.0%

Higher than 30% of Technology sector peers

Updated 83h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue a company keeps after paying direct production costs, so SMTC’s 52.0% means it retains $0.52 of every sales dollar to cover other expenses and profit.

Sector Performance

30th percentile

SMTC

52.0%

Sector Median

66.3%

Sector Avg

62.2%

Prior Period

51.9%(Jun 2026)

→ Stable

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Deep Analysis

That level sits well below the sector median of 66.9%, placing SMTC in the 27th percentile among Technology peers, indicating thinner production profitability than most competitors. The trend is not measurable: both year-over-year and quarter-over-quarter changes are N/A, so there is no recent trajectory to confirm improvement or deterioration. A below-median margin with no trend data offers limited opportunity for a turnaround narrative, while the low percentile signals structural cost pressure that raises downside risk. This metric contradicts the overall CAUTIOUS verdict only in the sense that caution is warranted; the weak relative margin supports a risk-averse stance rather than challenging it.

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 66.3%, placing it in the 30th percentile.

Who are SMTC's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: MDB (72.2%), NVDA (74.9%), CRWD (75.3%), ESTC (75.4%), CRM (76.9%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

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.