Technology OneASX:TNE +2.45%100 Operating Margin % is 27.13% as of Mar. 2026, which is 3% below its 10-year median of 27.93. GuruFocus rates ASX:TNE with a GF Score™ of 100/100 and a GF Value™ of A$30.00 (Fairly Valued). The stock has 1 warning sign investors should review. Among 2,818 Software companies, Technology One ranks better than 94.5% on this metric.
Technology One (ASX:TNE) 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 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.
Technology One Operating Margin % Related Terms
Technology One Operating Margin % Historical Data
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The historical data trend for Technology One'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.
ASX:TNE vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Technology One'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.
Technology One Operating Margin % vs Software Industry
For the Software industry and Technology sector, Technology One's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Technology One'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.
Technology One's Operating Margin % for the fiscal year that ended in Sep. 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.
Technology One (ASX:TNE) has a Operating Margin % of 27.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Technology One and its competitors. This is near median its historical median of 27.93. Over the past decade, Technology One's Operating Margin % has ranged from 20.44 to 31.68. According to the industry distribution chart, Technology One ranks #155 out of 2818 companies in the Software industry, placing it in the top 5.5%.
Is Technology One's Operating Margin % too high?
Technology One's current Operating Margin % of 27.13% is near median its 10-year median of 27.93. Over the past 10 years, this metric has ranged from a low of 20.44 to a high of 31.68. The Software industry median Operating Margin % is 3.88. Technology One's value of 27.13% is 600.1% above this industry median. Based on the distribution chart, Technology One ranks #155 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Technology One has a GF Score™ of 100/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Technology One's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Technology One ranks #155 out of 2818 companies for Operating Margin %. This places Technology One in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Technology One's value of 27.13% is 600.1% above this benchmark. Historically, Technology One's own Operating Margin % has ranged from 20.44 to 31.68 over the past decade. While the company's 10-year median is 27.93 vs. the industry median of 3.88, Technology One 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 Software company?
The median Operating Margin % among Software companies is 3.88, 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. Technology One's current Operating Margin % of 27.13% is 600.1% 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 Technology One and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Technology One's current Operating Margin % is 27.13%, which is near median its own 10-year median of 27.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Technology One stock overvalued right now?
Based on GuruFocus' analysis, Technology One (ASX:TNE) is currently considered Fairly Valued. The stock's GF Value™ is A$30.00, compared to a current price of A$28.41 — trading 5.3% below its estimated fair value. The current Operating Margin % is 27.13%, which is near median its 10-year median of 27.93 and 600.1% above the Software industry median of 3.88. Technology One's overall GF Score™ is 100/100 with 1 warning sign 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 Technology One (ASX:TNE), the current Operating Margin % is 27.13% 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 Technology One (ASX:TNE) Overvalued in 2026?
Based on GuruFocus' analysis, Technology One stock appears to be undervalued.
The current stock price of A$28.41 is trading 5.3% below its estimated GF Value™ of A$30.00.
GuruFocus considers Technology One to be Fairly Valued.
Key valuation signals for ASX:TNE:
Operating Margin %: 27.13% (near median its 10-year median of 27.93)
GF Value™: A$30.00 vs. price of A$28.41 (5.3% below fair value)
Industry Position: 600.1% above the Software median (#155 of 2818)
No single metric tells the full story. See the ASX:TNE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Technology One is a technology company providing enterprise resource planning software, primarily to governmental organizations, education institutions, and healthcare organizations in Australia, New Zealand, and the United Kingdom. Over the past three decades, Technology One has successfully carved out its niche, boasting dominant market shares in some of its key verticals, world-leading annual customer retention rates of over 99%, and a consistently growing number of products used per customer.
100GF Score
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