AAC Technologies HoldingsAACAY +0.53%92 Operating Margin % is 10.34% as of Dec. 2025, which is 11% above its 10-year median of 9.32. GuruFocus rates AACAY with a GF Score™ of 92/100 and a GF Value™ of $5.86 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,472 Hardware companies, AAC Technologies Holdings ranks better than 71.6% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
AAC Technologies Holdings Operating Margin % Related Terms
AAC Technologies Holdings Operating Margin % Historical Data
* 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.
AACAY vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, AAC Technologies Holdings's Operating Margin %, along with its competitors' market caps and Operating 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.
AAC Technologies Holdings Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, AAC Technologies Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where AAC Technologies Holdings's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
AAC Technologies Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
AAC Technologies Holdings (AACAY) has a Operating Margin % of 10.34% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on AAC Technologies Holdings and its competitors. This is 11% above median its historical median of 9.32. Over the past decade, AAC Technologies Holdings' Operating Margin % has ranged from 3.85 to 29.11. According to the industry distribution chart, AAC Technologies Holdings ranks #702 out of 2472 companies in the Hardware industry, placing it in the top 28.4%.
Is AAC Technologies Holdings' Operating Margin % too high?
AAC Technologies Holdings' current Operating Margin % of 10.34% is 11% above median its 10-year median of 9.32. Over the past 10 years, this metric has ranged from a low of 3.85 to a high of 29.11. The Hardware industry median Operating Margin % is 3.80. AAC Technologies Holdings' value of 10.34% is 172.1% above this industry median. Based on the distribution chart, AAC Technologies Holdings ranks #702 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, AAC Technologies Holdings has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does AAC Technologies Holdings' Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, AAC Technologies Holdings ranks #702 out of 2472 companies for Operating Margin %. This puts AAC Technologies Holdings in the upper half of its industry. The industry median Operating Margin % is 3.80. AAC Technologies Holdings' value of 10.34% is 172.1% above this benchmark. Historically, AAC Technologies Holdings' own Operating Margin % has ranged from 3.85 to 29.11 over the past decade. While the company's 10-year median is 9.32 vs. the industry median of 3.80, AAC Technologies Holdings 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 Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. AAC Technologies Holdings's current Operating Margin % of 10.34% is 172.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on AAC Technologies Holdings and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AAC Technologies Holdings's current Operating Margin % is 10.34%, which is 11% above median its own 10-year median of 9.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AAC Technologies Holdings stock overvalued right now?
Based on GuruFocus' analysis, AAC Technologies Holdings (AACAY) is currently considered Fairly Valued. The stock's GF Value™ is $5.86, compared to a current price of $5.85 — trading 0.2% below its estimated fair value. The current Operating Margin % is 10.34%, which is 11% above median its 10-year median of 9.32 and 172.1% above the Hardware industry median of 3.80. AAC Technologies Holdings' overall GF Score™ is 92/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For AAC Technologies Holdings (AACAY), the current Operating Margin % is 10.34% as of Dec. 2025. 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 AAC Technologies Holdings (AACAY) Overvalued in 2026?
Based on GuruFocus' analysis, AAC Technologies Holdings stock appears to be undervalued.
The current stock price of $5.85 is trading 0.2% below its estimated GF Value™ of $5.86.
GuruFocus considers AAC Technologies Holdings to be Fairly Valued.
Key valuation signals for AACAY:
Operating Margin %: 10.34% (11% above median its 10-year median of 9.32)
GF Value™: $5.86 vs. price of $5.85 (0.2% below fair value)
Industry Position: 172.1% above the Hardware median (#702 of 2472)
No single metric tells the full story. See the AACAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AAC Technologies is one of the world's largest manufacturers of miniature acoustic components, such as speakers and receivers, primarily for smartphones. Founded in 1993, the company has since expanded into the production of other handset components, such as electromagnetic drives (haptics), precision mechanical, lenses and camera modules, sensors, and MEMS microphones. AAC is headquartered in Shenzhen, China, and runs factories in China, Vietnam, Czechia, and Malaysia. It employed 44,181 people as at June 30, 2025.
92GF Score
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