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.
Oracle Financial Services Software Operating Margin % Related Terms
Oracle Financial Services Software 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.
BOM:532466 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Oracle Financial Services Software'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.
Oracle Financial Services Software Operating Margin % vs Software Industry
For the Software industry and Technology sector, Oracle Financial Services Software's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Oracle Financial Services Software'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.
* 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.
Oracle Financial Services Software (BOM:532466) has a Operating Margin % of 50.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Oracle Financial Services Software and its competitors. This is 15% above median its historical median of 43.73. Over the past decade, Oracle Financial Services Software's Operating Margin % has ranged from 38.09 to 47.16. According to the industry distribution chart, Oracle Financial Services Software ranks #43 out of 2816 companies in the Software industry, placing it in the top 1.5%.
Is Oracle Financial Services Software's Operating Margin % too high?
Oracle Financial Services Software's current Operating Margin % of 50.40% is 15% above median its 10-year median of 43.73. Over the past 10 years, this metric has ranged from a low of 38.09 to a high of 47.16. The Software industry median Operating Margin % is 3.80. Oracle Financial Services Software's value of 50.40% is 1228.1% above this industry median. Based on the distribution chart, Oracle Financial Services Software ranks #43 out of 2816 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Oracle Financial Services Software has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Oracle Financial Services Software's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Oracle Financial Services Software ranks #43 out of 2816 companies for Operating Margin %. This places Oracle Financial Services Software in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Oracle Financial Services Software's value of 50.40% is 1228.1% above this benchmark. Historically, Oracle Financial Services Software's own Operating Margin % has ranged from 38.09 to 47.16 over the past decade. While the company's 10-year median is 43.73 vs. the industry median of 3.80, Oracle Financial Services Software 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 3.80, based on 2,816 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. Oracle Financial Services Software's current Operating Margin % of 50.40% is 1228.1% 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 Oracle Financial Services Software and its competitors. For the Software industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oracle Financial Services Software's current Operating Margin % is 50.40%, which is 15% above median its own 10-year median of 43.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oracle Financial Services Software stock overvalued right now?
Based on GuruFocus' analysis, Oracle Financial Services Software (BOM:532466) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹9,750.84, compared to a current price of ₹10,855.80 — trading 11.3% above its estimated fair value. The current Operating Margin % is 50.40%, which is 15% above median its 10-year median of 43.73 and 1228.1% above the Software industry median of 3.80. Oracle Financial Services Software's overall GF Score™ is 88/100 with 6 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 Oracle Financial Services Software (BOM:532466), the current Operating Margin % is 50.40% 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 Oracle Financial Services Software (BOM:532466) Overvalued in 2026?
Based on GuruFocus' analysis, Oracle Financial Services Software stock appears to be overvalued.
The current stock price of ₹10,855.80 is trading 11.3% above its estimated GF Value™ of ₹9,750.84.
GuruFocus considers Oracle Financial Services Software to be Modestly Overvalued.
Key valuation signals for BOM:532466:
Operating Margin %: 50.40% (15% above median its 10-year median of 43.73)
GF Value™: ₹9,750.84 vs. price of ₹10,855.80 (11.3% above fair value)
Industry Position: 1228.1% above the Software median (#43 of 2816)
No single metric tells the full story. See the BOM:532466 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oracle Financial Services Software Business Description
Oracle Financial Services Software Ltd is an India-based provider of software systems, computer systems, and consulting services. Its flagship Flexcube offerings include universal banking, investor servicing, private banking, lending and leasing, Islamic banking, Internet and mobile banking, remit, and collateral management capabilities. Its other offerings include analytical infrastructure applications, financial crime analysis, and compliance management applications. The firm also offers support and business process outsourcing services. The company has two reportable segments Product licenses and related activities ('Products') and IT solutions and consulting services ('Services'). Geographically the company generates the majority of its revenue from the Product segment.
88GF Score
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