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.
IB Infotech Enterprises Operating Margin % Related Terms
IB Infotech Enterprises Operating Margin % Historical Data
* Premium members only.
The historical data trend for IB Infotech Enterprises'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.
BOM:519463 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, IB Infotech Enterprises'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.
IB Infotech Enterprises Operating Margin % vs Software Industry
For the Software industry and Technology sector, IB Infotech Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where IB Infotech Enterprises'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.
IB Infotech Enterprises's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
IB Infotech Enterprises (BOM:519463) has a Operating Margin % of -342.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on IB Infotech Enterprises and its competitors. Over the past decade, IB Infotech Enterprises' Operating Margin % has ranged from 16.27 to 26.57. According to the industry distribution chart, IB Infotech Enterprises ranks #409 out of 2818 companies in the Software industry, placing it in the top 14.5%.
Is IB Infotech Enterprises' Operating Margin % too high?
IB Infotech Enterprises' current Operating Margin % is -342.81%. Over the past 10 years, this metric has ranged from a low of 16.27 to a high of 26.57. Based on the distribution chart, IB Infotech Enterprises ranks #409 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, IB Infotech Enterprises has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IB Infotech Enterprises' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, IB Infotech Enterprises ranks #409 out of 2818 companies for Operating Margin %. This places IB Infotech Enterprises in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. Historically, IB Infotech Enterprises' own Operating Margin % has ranged from 16.27 to 26.57 over the past decade. 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 3.81, 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. 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 IB Infotech Enterprises and its competitors. For the Software 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. IB Infotech Enterprises's current Operating Margin % is -342.81%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IB Infotech Enterprises stock overvalued right now?
Based on GuruFocus' analysis, IB Infotech Enterprises (BOM:519463) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹20.94, compared to a current price of ₹41.26 — trading 97% above its estimated fair value. The current Operating Margin % is -342.81%. IB Infotech Enterprises' overall GF Score™ is 33/100 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 IB Infotech Enterprises (BOM:519463), the current Operating Margin % is -342.81% 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 IB Infotech Enterprises (BOM:519463) Overvalued in 2026?
Based on GuruFocus' analysis, IB Infotech Enterprises stock appears to be overvalued.
The current stock price of ₹41.26 is trading 97% above its estimated GF Value™ of ₹20.94.
GuruFocus considers IB Infotech Enterprises to be Significantly Overvalued.
Key valuation signals for BOM:519463:
Operating Margin %: -342.81%
GF Value™: ₹20.94 vs. price of ₹41.26 (97% above fair value)
No single metric tells the full story. See the BOM:519463 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IB Infotech Enterprises Ltd is involved in the manufacturing, promotion, development, implementation, trading, and dealings of various information technology-related services, electronics, wireless application products, telecommunications, media, software, web hosting, advertising, and other services. The company is also engaged in internet technology, IT-enabled services, and data encryption. Its operations are located in India.
33GF Score
Get the complete analysis for BOM:519463
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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