Allied Telesis Holdings KKATSKF 60 Operating Margin % is 9.15% as of Dec. 2025, which is 125% above its 10-year median of 4.07. GuruFocus rates ATSKF with a GF Score™ of 60/100 and a GF Value™ of $0.49. The stock has 2 warning signs investors should review. Among 2,472 Hardware companies, Allied Telesis Holdings KK ranks better than 71.84% on this metric.
Allied Telesis Holdings KK (OTCPK:ATSKF) 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.
Allied Telesis Holdings KK Operating Margin % Related Terms
Allied Telesis Holdings KK Operating Margin % Historical Data
* 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.
Allied Telesis Holdings KK Operating Margin % Chart
ATSKF vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Allied Telesis Holdings KK'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.
Allied Telesis Holdings KK Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Allied Telesis Holdings KK's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Allied Telesis Holdings KK's Operating Margin % falls into.
Allied Telesis Holdings KK 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.
Allied Telesis Holdings KK'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.
Allied Telesis Holdings KK (ATSKF) has a Operating Margin % of 9.15% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Allied Telesis Holdings KK and its competitors. This is 125% above median its historical median of 4.07. Over the past decade, Allied Telesis Holdings KK's Operating Margin % has ranged from 0.85 to 8.89. According to the industry distribution chart, Allied Telesis Holdings KK ranks #696 out of 2472 companies in the Hardware industry, placing it in the top 28.2%.
Is Allied Telesis Holdings KK's Operating Margin % too high?
Allied Telesis Holdings KK's current Operating Margin % of 9.15% is 125% above median its 10-year median of 4.07. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 8.89. The Hardware industry median Operating Margin % is 3.81. Allied Telesis Holdings KK's value of 9.15% is 140.2% above this industry median. Based on the distribution chart, Allied Telesis Holdings KK ranks #696 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, Allied Telesis Holdings KK has a GF Score™ of 60/100, reflecting its overall financial health beyond just this single metric.
How does Allied Telesis Holdings KK's Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Allied Telesis Holdings KK ranks #696 out of 2472 companies for Operating Margin %. This puts Allied Telesis Holdings KK in the upper half of its industry. The industry median Operating Margin % is 3.81. Allied Telesis Holdings KK's value of 9.15% is 140.2% above this benchmark. Historically, Allied Telesis Holdings KK's own Operating Margin % has ranged from 0.85 to 8.89 over the past decade. While the company's 10-year median is 4.07 vs. the industry median of 3.81, Allied Telesis Holdings KK 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. Allied Telesis Holdings KK's current Operating Margin % of 9.15% is 140.2% 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 Allied Telesis Holdings KK and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allied Telesis Holdings KK's current Operating Margin % is 9.15%, which is 125% 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 Allied Telesis Holdings KK stock overvalued right now?
Allied Telesis Holdings KK (ATSKF) has a current Operating Margin % of 9.15%. The stock's GF Value™ is $0.49, compared to a current price of $0.88 — trading 78.7% above its estimated fair value. The current Operating Margin % is 9.15%, which is 125% above median its 10-year median of 4.07 and 140.2% above the Hardware industry median of 3.81. Allied Telesis Holdings KK's overall GF Score™ is 60/100 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 Allied Telesis Holdings KK (ATSKF), the current Operating Margin % is 9.15% 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 Allied Telesis Holdings KK (ATSKF) Overvalued in 2026?
Based on GuruFocus' analysis, Allied Telesis Holdings KK stock appears to be overvalued.
The current stock price of $0.88 is trading 78.7% above its estimated GF Value™ of $0.49.
Key valuation signals for ATSKF:
Operating Margin %: 9.15% (125% above median its 10-year median of 4.07)
GF Value™: $0.49 vs. price of $0.88 (78.7% above fair value)
Industry Position: 140.2% above the Hardware median (#696 of 2472)
No single metric tells the full story. See the ATSKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allied Telesis Holdings KK is a Japan-based company engaged in the planning, development, manufacture, and sales of network devices and solutions. The company operates in three businesses namely network products, solutions, and support services. Its network products business manufactures software and hardware related products. The solutions business provides optimum ecosystem solutions. Its support services business is involved in planning and consulting, installation and structuring, operation and monitoring, and education and related support businesses.
60GF Score
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