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Observit ABOSTO:OBSE +4.76%33 Net Margin % is 2.37% as of Mar. 2026, which is 44% above its 10-year median of 1.65. GuruFocus rates OSTO:OBSE with a GF Score™ of 33/100 and a GF Value™ of kr0.40 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,833 Software companies, Observit AB ranks worse than 55.1% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Observit AB's Net Income for the
three
months ended in Mar. 2026 was kr0.33 Mil. Observit AB's Revenue for the
three
months ended in Mar. 2026 was kr14.08 Mil. Therefore, Observit AB's net margin for the quarter that ended in Mar. 2026 was 2.37%.
The historical rank and industry rank for Observit AB's Net Margin % or its related term are showing as below:
OSTO:OBSE'
s Net Margin % Range Over the Past 10 Years
Min: -2.14 Med: 1.65 Max: 16.6
Current: 1.22
OSTO:OBSE's Net Margin % is ranked worse than 55.1% of 2833
companies
in the Software industry
Industry Median: 2.72
vs OSTO:OBSE: 1.22
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Observit AB Net Margin % Related Terms
Observit AB Net Margin % Historical Data
* Premium members only.
The historical data trend for Observit AB's Net 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.
OSTO:OBSE vs IBM, ACN, FISV: Net Margin % Comparison
For the Information Technology Services subindustry, Observit AB's Net Margin %, along with its competitors' market caps and Net 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.
Observit AB Net Margin % vs Software Industry
For the Software industry and Technology sector, Observit AB's Net Margin % distribution charts can be found below:
* The bar in red indicates where Observit AB's Net 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.
Observit AB (OSTO:OBSE) has a Net Margin % of 2.37% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Observit AB and its competitors. This is 44% above median its historical median of 1.65. According to the industry distribution chart, Observit AB ranks #1561 out of 2833 companies in the Software industry, placing it in the top 55.1%.
Is Observit AB's Net Margin % too high?
Observit AB's current Net Margin % of 2.37% is 44% above median its 10-year median of 1.65. The Software industry median Net Margin % is 2.72. Observit AB's value of 2.37% is 12.9% below this industry median. Based on the distribution chart, Observit AB ranks #1561 out of 2833 companies in the Software industry, which is below the industry midpoint. Overall, Observit AB has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Observit AB's Net Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Observit AB ranks #1561 out of 2833 companies for Net Margin %. This places Observit AB in the lower half of its industry. The industry median Net Margin % is 2.72. Observit AB's value of 2.37% is 12.9% below this benchmark. While the company's 10-year median is 1.65 vs. the industry median of 2.72, Observit AB has consistently been below 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.72, based on 2,833 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Observit AB's current Net Margin % of 2.37% is 12.9% below 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Observit AB and its competitors. For the Software industry, the median Net Margin % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Observit AB's current Net Margin % is 2.37%, which is 44% above median its own 10-year median of 1.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Observit AB stock overvalued right now?
Based on GuruFocus' analysis, Observit AB (OSTO:OBSE) is currently considered Significantly Overvalued. The stock's GF Value™ is kr0.40, compared to a current price of kr0.66 — trading 65% above its estimated fair value. The current Net Margin % is 2.37%, which is 44% above median its 10-year median of 1.65 and 12.9% below the Software industry median of 2.72. Observit AB's overall GF Score™ is 33/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Observit AB (OSTO:OBSE), the current Net Margin % is 2.37% 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 Observit AB (OSTO:OBSE) Overvalued in 2026?
Based on GuruFocus' analysis, Observit AB stock appears to be overvalued.
The current stock price of kr0.66 is trading 65% above its estimated GF Value™ of kr0.40.
GuruFocus considers Observit AB to be Significantly Overvalued.
Key valuation signals for OSTO:OBSE:
Net Margin %: 2.37% (44% above median its 10-year median of 1.65)
GF Value™: kr0.40 vs. price of kr0.66 (65% above fair value)
Industry Position: 12.9% below the Software median (#1561 of 2833)
No single metric tells the full story. See the OSTO:OBSE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Observit AB is the market leader in the Nordics when it comes to mobile video surveillance in public transport. The company provides software as a cloud service, and a Software as a Service (SaaS) solution, and currently has approximately 38,000 licenses (one license per security camera) connected globally. The customer base includes bus operators such as Nobina, Keolis, and Arriva and other transport-heavy customers such as Elis. Observit wants to become the brand for mobile video solutions in the transport sector.
33GF Score
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