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.
ACE Software Exports Operating Margin % Related Terms
ACE Software Exports Operating Margin % Historical Data
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The historical data trend for ACE Software Exports'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:890230 vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, ACE Software Exports'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.
ACE Software Exports Operating Margin % vs Software Industry
For the Software industry and Technology sector, ACE Software Exports's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ACE Software Exports'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.
ACE Software Exports'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.
ACE Software Exports (BOM:890230) has a Operating Margin % of 1.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ACE Software Exports and its competitors. According to the industry distribution chart, ACE Software Exports ranks #1037 out of 2820 companies in the Software industry, placing it in the top 36.8%.
Is ACE Software Exports' Operating Margin % too high?
ACE Software Exports' current Operating Margin % is 1.89%. The Software industry median Operating Margin % is 3.87. ACE Software Exports' value of 1.89% is 51.1% below this industry median. Based on the distribution chart, ACE Software Exports ranks #1037 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, ACE Software Exports has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ACE Software Exports' Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, ACE Software Exports ranks #1037 out of 2820 companies for Operating Margin %. This puts ACE Software Exports in the upper half of its industry. The industry median Operating Margin % is 3.87. ACE Software Exports' value of 1.89% is 51.1% below this benchmark. 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 3.87, based on 2,820 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. ACE Software Exports's current Operating Margin % of 1.89% is 51.1% below 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 ACE Software Exports and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ACE Software Exports's current Operating Margin % is 1.89%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ACE Software Exports stock overvalued right now?
Based on GuruFocus' analysis, ACE Software Exports (BOM:890230) is currently considered Possible Value Trap. The stock's GF Value™ is ₹151.61, compared to a current price of ₹35.94 — trading 76.3% below its estimated fair value. The current Operating Margin % is 1.89% and 51.1% below the Software industry median of 3.87. ACE Software Exports' overall GF Score™ is 51/100 with 5 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 ACE Software Exports (BOM:890230), the current Operating Margin % is 1.89% 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 ACE Software Exports (BOM:890230) Overvalued in 2026?
Based on GuruFocus' analysis, ACE Software Exports stock appears to be undervalued.
The current stock price of ₹35.94 is trading 76.3% below its estimated GF Value™ of ₹151.61.
GuruFocus considers ACE Software Exports to be Possible Value Trap.
Key valuation signals for BOM:890230:
Operating Margin %: 1.89%
GF Value™: ₹151.61 vs. price of ₹35.94 (76.3% below fair value)
Industry Position: 51.1% below the Software median (#1037 of 2820)
No single metric tells the full story. See the BOM:890230 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ACE Software Exports Ltd operates in the business of software database creation. It provides document management, digital publishing, and data conversion solutions using process engineering and cost-effective and flexible conversion systems. The firm operates under a single segment namely Computer Software and Services Exports. The company is engaged in the exports of computer software and service. The company's business relates to database creation pertaining to Information technology-enabled services, which include creating large volume full text, and image-based databases. The company derives the majority of its revenue from the sale of software.
51GF Score
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