AltiGen CommunicationsATGN 52 Operating Margin % is 6.37% as of Mar. 2026, which is 57% above its 10-year median of 4.07. GuruFocus rates ATGN with a GF Score™ of 52/100. The stock has 5 warning signs investors should review. Among 367 Telecommunication Services companies, AltiGen Communications ranks worse than 68.12% 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.
AltiGen Communications Operating Margin % Related Terms
AltiGen Communications Operating Margin % Historical Data
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The historical data trend for AltiGen Communications'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.
ATGN vs HMMR, SURG, IOTR: Operating Margin % Comparison
For the Telecom Services subindustry, AltiGen Communications'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.
AltiGen Communications Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, AltiGen Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where AltiGen Communications'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.
AltiGen Communications's Operating Margin % for the fiscal year that ended in Sep. 2023 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.
AltiGen Communications (ATGN) has a Operating Margin % of 6.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on AltiGen Communications and its competitors. This is 57% above median its historical median of 4.07. According to the industry distribution chart, AltiGen Communications ranks #250 out of 367 companies in the Telecommunication Services industry, placing it in the top 68.1%.
Is AltiGen Communications' Operating Margin % too high?
AltiGen Communications' current Operating Margin % of 6.37% is 57% above median its 10-year median of 4.07. The Telecommunication Services industry median Operating Margin % is 9.73. AltiGen Communications' value of 6.37% is 34.5% below this industry median. Based on the distribution chart, AltiGen Communications ranks #250 out of 367 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, AltiGen Communications has a GF Score™ of 52/100, reflecting its overall financial health beyond just this single metric.
How does AltiGen Communications' Operating Margin % compare to HMMR and SURG?
According to the Telecommunication Services industry distribution chart, AltiGen Communications ranks #250 out of 367 companies for Operating Margin %. This places AltiGen Communications in the lower half of its industry. The industry median Operating Margin % is 9.73. AltiGen Communications' value of 6.37% is 34.5% below this benchmark. While the company's 10-year median is 4.07 vs. the industry median of 9.73, AltiGen Communications 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 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. AltiGen Communications's current Operating Margin % of 6.37% is 34.5% 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 AltiGen Communications and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AltiGen Communications's current Operating Margin % is 6.37%, which is 57% above median its own 10-year median of 4.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AltiGen Communications stock overvalued right now?
AltiGen Communications (ATGN) has a current Operating Margin % of 6.37%. The current Operating Margin % is 6.37%, which is 57% above median its 10-year median of 4.07 and 34.5% below the Telecommunication Services industry median of 9.73. AltiGen Communications' overall GF Score™ is 52/100 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 AltiGen Communications (ATGN), the current Operating Margin % is 6.37% 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.
AltiGen Communications Inc is a provider of cloud-based Internet Protocol-private branch exchange (IP-PBX) and Contact Center solutions. The company designs, delivers, and supports Voice over Internet Protocol (VoIP) phone systems and call center solutions. Its Unified Communications solutions are designed with an open architecture, and its integrated Internet protocol (IP) applications suite provides customers with a business communications solution. It derives a majority of its revenue from the Hosted services.
52GF Score
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