Butler NationalBUKS +1.24%69 Operating Margin % is 34.33% as of Jan. 2026, which is 187% above its 10-year median of 11.95. GuruFocus rates BUKS with a GF Score™ of 69/100 and a GF Value™ of $1.60 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 347 Aerospace & Defense companies, Butler National ranks better than 94.52% on this metric.
Butler National (OTCPK:BUKS) 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.
Butler National Operating Margin % Related Terms
Butler National Operating Margin % Historical Data
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The historical data trend for Butler National'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.
BUKS vs POWW, FJET, SIDU: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Butler National'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.
Butler National Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Butler National's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Butler National'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.
Butler National's Operating Margin % for the fiscal year that ended in Apr. 2025 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.
Butler National (BUKS) has a Operating Margin % of 34.33% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Butler National and its competitors. This is 187% above median its historical median of 11.95. Over the past decade, Butler National's Operating Margin % has ranged from 1.39 to 27.63. According to the industry distribution chart, Butler National ranks #19 out of 347 companies in the Aerospace & Defense industry, placing it in the top 5.5%.
Is Butler National's Operating Margin % too high?
Butler National's current Operating Margin % of 34.33% is 187% above median its 10-year median of 11.95. Over the past 10 years, this metric has ranged from a low of 1.39 to a high of 27.63. The Aerospace & Defense industry median Operating Margin % is 7.75. Butler National's value of 34.33% is 343% above this industry median. Based on the distribution chart, Butler National ranks #19 out of 347 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Butler National has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Butler National's Operating Margin % compare to POWW and FJET?
According to the Aerospace & Defense industry distribution chart, Butler National ranks #19 out of 347 companies for Operating Margin %. This places Butler National in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.75. Butler National's value of 34.33% is 343% above this benchmark. Historically, Butler National's own Operating Margin % has ranged from 1.39 to 27.63 over the past decade. While the company's 10-year median is 11.95 vs. the industry median of 7.75, Butler National 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 an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 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. Butler National's current Operating Margin % of 34.33% is 343% 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 Butler National and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Butler National's current Operating Margin % is 34.33%, which is 187% above median its own 10-year median of 11.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Butler National stock overvalued right now?
Based on GuruFocus' analysis, Butler National (BUKS) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.60, compared to a current price of $4.21 — trading 163.1% above its estimated fair value. The current Operating Margin % is 34.33%, which is 187% above median its 10-year median of 11.95 and 343% above the Aerospace & Defense industry median of 7.75. Butler National's overall GF Score™ is 69/100 with 4 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 Butler National (BUKS), the current Operating Margin % is 34.33% as of Jan. 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 Butler National (BUKS) Overvalued in 2026?
Based on GuruFocus' analysis, Butler National stock appears to be overvalued.
The current stock price of $4.21 is trading 163.1% above its estimated GF Value™ of $1.60.
GuruFocus considers Butler National to be Significantly Overvalued.
Key valuation signals for BUKS:
Operating Margin %: 34.33% (187% above median its 10-year median of 11.95)
GF Value™: $1.60 vs. price of $4.21 (163.1% above fair value)
Industry Position: 343% above the Aerospace & Defense median (#19 of 347)
No single metric tells the full story. See the BUKS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Butler National Corp is involved in the design, engineering, manufacturing, selling, integrating, installing, repairing, modifying, overhauling, servicing, and distributing portfolio of aerostructures, aircraft components, avionics, accessories, subassemblies, and systems (Aerospace Products). The group serves the aviation industry, including owners of aircraft and contractors involved with private, commercial, business, and government aircraft operations. It also serves commercial weapon manufacturers and suppliers to governments and their agencies. The company has two operating segments: Professional Services and Aerospace Products. Its main source of revenue comes from the Aerospace Products segment. It operates in North America, Europe, Asia, Australia, and other geographical regions.
69GF Score
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