Electro Optic Systems Hldgs (ASX:EOS) Operating Margin %: -39.35% (As of Dec. 2025)


ASX:EOS Electro Optic Systems Hldgs Ltd ASX:EOS
63 GF Score
Price A$9.75
GF Value A$1.18
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Electro Optic Systems Hldgs Operating Margin %?

Electro Optic Systems Hldgs ASX:EOS 63 Operating Margin % is -39.35% as of Dec. 2025. GuruFocus rates ASX:EOS with a GF Score™ of 63/100 and a GF Value™ of A$1.18 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 347 Aerospace & Defense companies, Electro Optic Systems Hldgs ranks worse than 87.61% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Electro Optic Systems Hldgs's Operating Income for the six months ended in Dec. 2025 was A$-33.2 Mil. Electro Optic Systems Hldgs's Revenue for the six months ended in Dec. 2025 was A$84.4 Mil. Therefore, Electro Optic Systems Hldgs's Operating Margin % for the quarter that ended in Dec. 2025 was -39.35%.

Warning Sign:

Electro Optic Systems Hldgs Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -23.6%.

The historical rank and industry rank for Electro Optic Systems Hldgs's Operating Margin % or its related term are showing as below:

ASX:EOS' s Operating Margin % Range Over the Past 10 Years
Min: -45.33   Med: -13.68   Max: 12.78
Current: -45.33


ASX:EOS's Operating Margin % is ranked worse than
87.61% of 347 companies
in the Aerospace & Defense industry
Industry Median: 7.75 vs ASX:EOS: -45.33

Electro Optic Systems Hldgs's 5-Year Average Operating Margin % Growth Rate was -23.60% per year.

Electro Optic Systems Hldgs's Operating Income for the six months ended in Dec. 2025 was A$-33.2 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$-58.2 Mil.


Electro Optic Systems Hldgs  (ASX:EOS) Operating Margin % Explanation

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 Nokia’s 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.


Electro Optic Systems Hldgs Operating Margin % Related Terms


Electro Optic Systems Hldgs Operating Margin % Historical Data

* Premium members only.

The historical data trend for Electro Optic Systems Hldgs'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.

Electro Optic Systems Hldgs Operating Margin % Chart

Electro Optic Systems Hldgs Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -5.03 -40.49 -3.66 -15.59 -45.33

Electro Optic Systems Hldgs Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.80 1.87 -88.98 -56.76 -39.35

ASX:EOS vs GE, RTX, BA: Operating Margin % Comparison

For the Aerospace & Defense subindustry, Electro Optic Systems Hldgs'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.


Electro Optic Systems Hldgs Operating Margin % vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Electro Optic Systems Hldgs's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Electro Optic Systems Hldgs's Operating Margin % falls into.


ASX:EOS
63GF Score
Electro Optic Systems Hldgs Ltd ASX:EOS
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Electro Optic Systems Hldgs Operating Margin % Calculation

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.

Electro Optic Systems Hldgs's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-58.225 / 128.458
=-45.33 %

Electro Optic Systems Hldgs's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=-33.209 / 84.388
=-39.35 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -39.35% mean?
Electro Optic Systems Hldgs (ASX:EOS) has a Operating Margin % of -39.35% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Electro Optic Systems Hldgs and its competitors. According to the industry distribution chart, Electro Optic Systems Hldgs ranks #304 out of 347 companies in the Aerospace & Defense industry, placing it in the top 87.6%.
Is Electro Optic Systems Hldgs' Operating Margin % too high?
Electro Optic Systems Hldgs' current Operating Margin % is -39.35%. Based on the distribution chart, Electro Optic Systems Hldgs ranks #304 out of 347 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Electro Optic Systems Hldgs has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Electro Optic Systems Hldgs' Operating Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Electro Optic Systems Hldgs ranks #304 out of 347 companies for Operating Margin %. This places Electro Optic Systems Hldgs in the lower half of its industry. The industry median Operating Margin % is 7.75. 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 an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 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. 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 Electro Optic Systems Hldgs and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Electro Optic Systems Hldgs's current Operating Margin % is -39.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Electro Optic Systems Hldgs stock overvalued right now?
Based on GuruFocus' analysis, Electro Optic Systems Hldgs (ASX:EOS) is currently considered Significantly Overvalued. The stock's GF Value™ is A$1.18, compared to a current price of A$9.75 — trading 726.3% above its estimated fair value. The current Operating Margin % is -39.35%. Electro Optic Systems Hldgs' overall GF Score™ is 63/100 with 5 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 Electro Optic Systems Hldgs (ASX:EOS), the current Operating Margin % is -39.35% 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 Electro Optic Systems Hldgs (ASX:EOS) Overvalued in 2026?

Based on GuruFocus' analysis, Electro Optic Systems Hldgs stock appears to be overvalued. The current stock price of A$9.75 is trading 726.3% above its estimated GF Value™ of A$1.18. GuruFocus considers Electro Optic Systems Hldgs to be Significantly Overvalued.

Key valuation signals for ASX:EOS:

  • Operating Margin %: -39.35%
  • GF Value™: A$1.18 vs. price of A$9.75 (726.3% above fair value)
  • GF Score™: 63/100 with 5 warning signs

No single metric tells the full story. See the ASX:EOS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Electro Optic Systems Hldgs Business Description

Other Exchanges EOPSF:USAGP6:Germany
Address 1 Taubman Street, Level 2, Symonston, Canberra, ACT, AUS, 2609
Electro Optic Systems Hldgs Ltd is an Australian technology company. It develops and produces electro-optic technologies for the aerospace market. The group's reportable segments are Defence and Space Systems. It generates maximum revenue from the Defence segment. The Defence segment develops, manufactures, and markets fire control, surveillance, and weapon systems to approved military customers. The Space Systems segment includes a range of ground products available to support the Australian and international space markets. Geographically, it derives a majority of its revenue from Australia.
63GF Score

Get the complete analysis for ASX:EOS

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$9.75
Price
A$1.18
GF Value