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.
Asure Software Operating Margin % Related Terms
Asure Software Operating Margin % Historical Data
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The historical data trend for Asure Software'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.
ASUR vs CMRC, LAW, DSP: Operating Margin % Comparison
For the Software - Application subindustry, Asure Software'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.
Asure Software Operating Margin % vs Software Industry
For the Software industry and Technology sector, Asure Software's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Asure Software'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.
Asure Software'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.
Asure Software (ASUR) has a Operating Margin % of 5.45% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Asure Software and its competitors. According to the industry distribution chart, Asure Software ranks #1836 out of 2818 companies in the Software industry, placing it in the top 65.2%.
Is Asure Software's Operating Margin % too high?
Asure Software's current Operating Margin % is 5.45%. The Software industry median Operating Margin % is 3.87. Asure Software's value of 5.45% is 41% above this industry median. Based on the distribution chart, Asure Software ranks #1836 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Asure Software has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Asure Software's Operating Margin % compare to CMRC and LAW?
According to the Software industry distribution chart, Asure Software ranks #1836 out of 2818 companies for Operating Margin %. This places Asure Software in the lower half of its industry. The industry median Operating Margin % is 3.87. Asure Software's value of 5.45% is 41% above this benchmark. 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. Asure Software's current Operating Margin % of 5.45% is 41% 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 Asure Software 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. Asure Software's current Operating Margin % is 5.45%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Asure Software stock overvalued right now?
Based on GuruFocus' analysis, Asure Software (ASUR) is currently considered Modestly Undervalued. The stock's GF Value™ is $9.86, compared to a current price of $7.93 — trading 19.5% below its estimated fair value. The current Operating Margin % is 5.45% and 41% above the Software industry median of 3.87. Asure Software's overall GF Score™ is 72/100 with 2 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 Asure Software (ASUR), the current Operating Margin % is 5.45% 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 Asure Software (ASUR) Overvalued in 2026?
Based on GuruFocus' analysis, Asure Software stock appears to be undervalued.
The current stock price of $7.93 is trading 19.5% below its estimated GF Value™ of $9.86.
GuruFocus considers Asure Software to be Modestly Undervalued.
Key valuation signals for ASUR:
Operating Margin %: 5.45%
GF Value™: $9.86 vs. price of $7.93 (19.5% below fair value)
Industry Position: 41% above the Software median (#1836 of 2818)
No single metric tells the full story. See the ASUR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Asure Software Inc is a provider of cloud-based Human Capital Management (HCM) software solutions delivered as Software-as-a-Service (SaaS) to businesses of all sizes. It facilitates small and mid-sized businesses (SMBs) to develop their Human Capital to get to the next level, stay compliant, and allocate their time, money, and technology toward growth. The company's HCM suite, named AsureHCM, includes cloud-based Payroll and Tax, HR, a Time and Attendance software. Its HR services range from HR projects to outsourcing payroll to HR consulting services. The firm sells its products majorly in the United States.
72GF Score
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