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Locaweb Servicos de InternetBSP:LWSA3 +0.74%82 Operating Margin % is 14.43% as of Mar. 2026, which is 61% above its 10-year median of 8.94. GuruFocus rates BSP:LWSA3 with a GF Score™ of 82/100 and a GF Value™ of R$5.03 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 2,822 Software companies, Locaweb Servicos de Internet ranks worse than 76.97% on this metric.
Locaweb Servicos de Internet (BSP:LWSA3) 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.
Locaweb Servicos de Internet Operating Margin % Related Terms
Locaweb Servicos de Internet 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.
Locaweb Servicos de Internet Operating Margin % Chart
BSP:LWSA3 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Locaweb Servicos de Internet'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.
Locaweb Servicos de Internet Operating Margin % vs Software Industry
For the Software industry and Technology sector, Locaweb Servicos de Internet's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Locaweb Servicos de Internet's Operating Margin % falls into.
Locaweb Servicos de Internet 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.
* 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.
Locaweb Servicos de Internet (BSP:LWSA3) has a Operating Margin % of 14.43% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Locaweb Servicos de Internet and its competitors. This is 61% above median its historical median of 8.94. According to the industry distribution chart, Locaweb Servicos de Internet ranks #2172 out of 2822 companies in the Software industry, placing it in the top 77%.
Is Locaweb Servicos de Internet's Operating Margin % too high?
Locaweb Servicos de Internet's current Operating Margin % of 14.43% is 61% above median its 10-year median of 8.94. The Software industry median Operating Margin % is 3.89. Locaweb Servicos de Internet's value of 14.43% is 271.4% above this industry median. Based on the distribution chart, Locaweb Servicos de Internet ranks #2172 out of 2822 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Locaweb Servicos de Internet has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Locaweb Servicos de Internet's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Locaweb Servicos de Internet ranks #2172 out of 2822 companies for Operating Margin %. This places Locaweb Servicos de Internet in the lower half of its industry. The industry median Operating Margin % is 3.89. Locaweb Servicos de Internet's value of 14.43% is 271.4% above this benchmark. While the company's 10-year median is 8.94 vs. the industry median of 3.89, Locaweb Servicos de Internet 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 2,822 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. Locaweb Servicos de Internet's current Operating Margin % of 14.43% is 271.4% 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 Locaweb Servicos de Internet 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. Locaweb Servicos de Internet's current Operating Margin % is 14.43%, which is 61% above median its own 10-year median of 8.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Locaweb Servicos de Internet stock overvalued right now?
Based on GuruFocus' analysis, Locaweb Servicos de Internet (BSP:LWSA3) is currently considered Modestly Undervalued. The stock's GF Value™ is R$5.03, compared to a current price of R$4.07 — trading 19.1% below its estimated fair value. The current Operating Margin % is 14.43%, which is 61% above median its 10-year median of 8.94 and 271.4% above the Software industry median of 3.89. Locaweb Servicos de Internet's overall GF Score™ is 82/100 with 1 warning sign 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 Locaweb Servicos de Internet (BSP:LWSA3), the current Operating Margin % is 14.43% 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 Locaweb Servicos de Internet (BSP:LWSA3) Overvalued in 2026?
Based on GuruFocus' analysis, Locaweb Servicos de Internet stock appears to be undervalued.
The current stock price of R$4.07 is trading 19.1% below its estimated GF Value™ of R$5.03.
GuruFocus considers Locaweb Servicos de Internet to be Modestly Undervalued.
Key valuation signals for BSP:LWSA3:
Operating Margin %: 14.43% (61% above median its 10-year median of 8.94)
GF Value™: R$5.03 vs. price of R$4.07 (19.1% below fair value)
Industry Position: 271.4% above the Software median (#2172 of 2822)
No single metric tells the full story. See the BSP:LWSA3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Locaweb Servicos de Internet SA is a Brazil-based software company. It offers digital marketing, cloud, and accommodation services such as website hosting, WordPress hosting, domain registration, and email services. The operations of the Company and its subsidiaries are divided into two operating segments: Be Online and SaaS, and Commerce. The Be Online and SaaS segment includes hosting and cloud services, as well as those called SaaS (email, marketing intelligence software, and site builder). The Commerce segment includes e-commerce solutions, platforms, marketplace integration, and sub-acquiring business services. It generates the majority of its revenue from the Commerce segment.
82GF Score
Get the complete analysis for BSP:LWSA3
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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