Space42ADX:SPACE42 88 Operating Margin % is 2.84% as of Mar. 2026, which is 87% below its 10-year median of 22.05. GuruFocus rates ADX:SPACE42 with a GF Score™ of 88/100 and a GF Value™ of د.إ2.17 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 2,818 Software companies, Space42 ranks worse than 77.93% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Space42's Operating Income for the
three
months ended in Mar. 2026 was د.إ12 Mil. Space42's Revenue for the
three
months ended in Mar. 2026 was د.إ424 Mil. Therefore, Space42's Operating Margin % for the quarter that ended in Mar. 2026 was 2.84%.
The historical rank and industry rank for Space42's Operating Margin % or its related term are showing as below:
ADX:SPACE42'
s Operating Margin % Range Over the Past 10 Years
Min: -18.58 Med: 22.05 Max: 30.24
Current: -18.58
ADX:SPACE42's Operating Margin % is ranked worse than 77.93% of 2818
companies
in the Software industry
Industry Median: 3.865
vs ADX:SPACE42: -18.58
Space42's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Space42's Operating Income for the
three
months ended in Mar. 2026 was د.إ12 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was د.إ-394 Mil.
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.
Space42 Operating Margin % Related Terms
Space42 Operating Margin % Historical Data
* Premium members only.
The historical data trend for Space42's Operating 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.
ADX:SPACE42 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Space42'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.
Space42 Operating Margin % vs Software Industry
For the Software industry and Technology sector, Space42's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Space42'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.
Space42'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.
Space42 (ADX:SPACE42) has a Operating Margin % of 2.84% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Space42 and its competitors. This is 87% below median its historical median of 22.05. According to the industry distribution chart, Space42 ranks #2196 out of 2818 companies in the Software industry, placing it in the top 77.9%.
Is Space42's Operating Margin % too high?
Space42's current Operating Margin % of 2.84% is 87% below median its 10-year median of 22.05. The Software industry median Operating Margin % is 3.87. Space42's value of 2.84% is 26.5% below this industry median. Based on the distribution chart, Space42 ranks #2196 out of 2818 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Space42 has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Space42's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Space42 ranks #2196 out of 2818 companies for Operating Margin %. This places Space42 in the lower half of its industry. The industry median Operating Margin % is 3.87. Space42's value of 2.84% is 26.5% below this benchmark. While the company's 10-year median is 22.05 vs. the industry median of 3.87, Space42 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 Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 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. Space42's current Operating Margin % of 2.84% is 26.5% 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 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 Space42 and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Space42's current Operating Margin % is 2.84%, which is 87% below median its own 10-year median of 22.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Space42 stock overvalued right now?
Based on GuruFocus' analysis, Space42 (ADX:SPACE42) is currently considered Modestly Undervalued. The stock's GF Value™ is د.إ2.17, compared to a current price of د.إ1.75 — trading 19.4% below its estimated fair value. The current Operating Margin % is 2.84%, which is 87% below median its 10-year median of 22.05 and 26.5% below the Software industry median of 3.87. Space42's overall GF Score™ is 88/100 with 6 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 Space42 (ADX:SPACE42), the current Operating Margin % is 2.84% 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 Space42 (ADX:SPACE42) Overvalued in 2026?
Based on GuruFocus' analysis, Space42 stock appears to be undervalued.
The current stock price of د.إ1.75 is trading 19.4% below its estimated GF Value™ of د.إ2.17.
GuruFocus considers Space42 to be Modestly Undervalued.
Key valuation signals for ADX:SPACE42:
Operating Margin %: 2.84% (87% below median its 10-year median of 22.05)
GF Value™: د.إ2.17 vs. price of د.إ1.75 (19.4% below fair value)
Industry Position: 26.5% below the Software median (#2196 of 2818)
No single metric tells the full story. See the ADX:SPACE42 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Space42 PLC is a UAE-based AI-powered space tech group that integrates satellite communications, geospatial insights, and artificial intelligence capabilities for customers globally. Its operating segments are: Space Services and Smart Solutions. The majority of the group's revenue is generated by the Space Services segment, which provides secure satellite communication solutions for government and mission-critical applications, reliable mobility and communication solutions, and high-speed data connectivity. The Smart Solutions business provides earth observation, geospatial, and industry-specific solutions using an AI-driven multi-intelligence platform, GIQ. Geographically, the group derives maximum revenue from the UAE, followed by Asia, Africa, Europe, North America, and other regions.
88GF Score
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