The Practical Solution PCLBKK:TPS -0.63%89 Operating Margin % is 8.03% as of Mar. 2026, which is 14% below its 10-year median of 9.29. GuruFocus rates BKK:TPS with a GF Score™ of 89/100 and a GF Value™ of ฿3.15 (Fairly Valued). The stock has 7 warning signs investors should review. Among 2,810 Software companies, The Practical Solution PCL ranks better than 72.46% on this metric.
The Practical Solution PCL (BKK:TPS) 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.
The Practical Solution PCL Operating Margin % Related Terms
The Practical Solution PCL 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.
The Practical Solution PCL Operating Margin % Chart
BKK:TPS vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, The Practical Solution PCL'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.
The Practical Solution PCL Operating Margin % vs Software Industry
For the Software industry and Technology sector, The Practical Solution PCL's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Practical Solution PCL's Operating Margin % falls into.
The Practical Solution PCL 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.
The Practical Solution PCL'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.
The Practical Solution PCL (BKK:TPS) has a Operating Margin % of 8.03% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Practical Solution PCL and its competitors. This is 14% below median its historical median of 9.29. Over the past decade, The Practical Solution PCL's Operating Margin % has ranged from 6.74 to 11.17. According to the industry distribution chart, The Practical Solution PCL ranks #774 out of 2810 companies in the Software industry, placing it in the top 27.5%.
Is The Practical Solution PCL's Operating Margin % too high?
The Practical Solution PCL's current Operating Margin % of 8.03% is 14% below median its 10-year median of 9.29. Over the past 10 years, this metric has ranged from a low of 6.74 to a high of 11.17. The Software industry median Operating Margin % is 3.89. The Practical Solution PCL's value of 8.03% is 106.7% above this industry median. Based on the distribution chart, The Practical Solution PCL ranks #774 out of 2810 companies in the Software industry, which is above the industry midpoint. Overall, The Practical Solution PCL has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does The Practical Solution PCL's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, The Practical Solution PCL ranks #774 out of 2810 companies for Operating Margin %. This puts The Practical Solution PCL in the upper half of its industry. The industry median Operating Margin % is 3.89. The Practical Solution PCL's value of 8.03% is 106.7% above this benchmark. Historically, The Practical Solution PCL's own Operating Margin % has ranged from 6.74 to 11.17 over the past decade. While the company's 10-year median is 9.29 vs. the industry median of 3.89, The Practical Solution PCL 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 3.89, based on 2,810 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. The Practical Solution PCL's current Operating Margin % of 8.03% is 106.7% 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 The Practical Solution PCL and its competitors. For the Software industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Practical Solution PCL's current Operating Margin % is 8.03%, which is 14% below median its own 10-year median of 9.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Practical Solution PCL stock overvalued right now?
Based on GuruFocus' analysis, The Practical Solution PCL (BKK:TPS) is currently considered Fairly Valued. The stock's GF Value™ is ฿3.15, compared to a current price of ฿3.16 — trading 0.3% above its estimated fair value. The current Operating Margin % is 8.03%, which is 14% below median its 10-year median of 9.29 and 106.7% above the Software industry median of 3.89. The Practical Solution PCL's overall GF Score™ is 89/100 with 7 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 The Practical Solution PCL (BKK:TPS), the current Operating Margin % is 8.03% 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 The Practical Solution PCL (BKK:TPS) Overvalued in 2026?
Based on GuruFocus' analysis, The Practical Solution PCL stock appears to be overvalued.
The current stock price of ฿3.16 is trading 0.3% above its estimated GF Value™ of ฿3.15.
GuruFocus considers The Practical Solution PCL to be Fairly Valued.
Key valuation signals for BKK:TPS:
Operating Margin %: 8.03% (14% below median its 10-year median of 9.29)
GF Value™: ฿3.15 vs. price of ฿3.16 (0.3% above fair value)
Industry Position: 106.7% above the Software median (#774 of 2810)
No single metric tells the full story. See the BKK:TPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Practical Solution PCL is engaged in the distribution and installation of computer network systems, fully integrated communication systems, wireless communication systems, network security systems, data center solutions and management systems, and network system management, including providing maintenance services related to such systems. The firm operates in the segments of Sales including installment, Maintenance services, Construction, and Others. The majority of revenue is from sales including installment segment. Geographically, it operates in Thailand only.
89GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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