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.
Centerac Technologies Operating Margin % Related Terms
Centerac Technologies Operating Margin % Historical Data
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The historical data trend for Centerac Technologies'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:531621 vs ACN, IBM, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Centerac Technologies'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.
Centerac Technologies Operating Margin % vs Software Industry
For the Software industry and Technology sector, Centerac Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Centerac Technologies'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.
Centerac Technologies'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.
Centerac Technologies (BOM:531621) has a Operating Margin % of 50.21% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Centerac Technologies and its competitors. This is 1499% above median its historical median of 3.14.
Is Centerac Technologies' Operating Margin % too high?
Centerac Technologies' current Operating Margin % of 50.21% is 1499% above median its 10-year median of 3.14. The Software industry median Operating Margin % is 3.81. Centerac Technologies' value of 50.21% is 1217.8% above this industry median.
How does Centerac Technologies' Operating Margin % compare to ACN and IBM?
Centerac Technologies' Operating Margin % of 50.21% can be compared against companies in the Software industry. The industry median Operating Margin % is 3.81. Centerac Technologies' value of 50.21% is 1217.8% above this benchmark. While the company's 10-year median is 3.14 vs. the industry median of 3.81, Centerac Technologies 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 3.81, based on 2,817 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. Centerac Technologies's current Operating Margin % of 50.21% is 1217.8% 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 Centerac Technologies 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. Centerac Technologies's current Operating Margin % is 50.21%, which is 1499% above median its own 10-year median of 3.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Centerac Technologies stock overvalued right now?
Centerac Technologies (BOM:531621) has a current Operating Margin % of 50.21%. The stock's GF Value™ is ₹0.59, compared to a current price of ₹2.89 — trading 389.8% above its estimated fair value. The current Operating Margin % is 50.21%, which is 1499% above median its 10-year median of 3.14 and 1217.8% above the Software industry median of 3.81. 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 Centerac Technologies (BOM:531621), the current Operating Margin % is 50.21% 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.
Centerac Technologies Ltd is engaged in providing information technology and process solutions for various industries. The company is involved in offering solutions for E-auctions, E-commerce platforms, digital marketing, and B2B public and private marketplaces. In addition, the company is also involved in providing location-based services over Wi-Fi, mobile apps for POS billing, salesforce empowerment, inventory management, and in-store experiences. The company derives revenue mainly from providing IT support services.
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