Bytes Technology GroupBYITY -7.06%66 Operating Margin % is 26.68% as of Feb. 2026, which is 3% below its 10-year median of 27.39. GuruFocus rates BYITY with a GF Score™ of 66/100 and a GF Value™ of $14.56 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,818 Software companies, Bytes Technology Group ranks better than 94.29% on this metric.
Bytes Technology Group (OTCPK:BYITY) 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.
Bytes Technology Group Operating Margin % Related Terms
Bytes Technology Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Bytes Technology Group'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.
BYITY vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Bytes Technology Group'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.
Bytes Technology Group Operating Margin % vs Software Industry
For the Software industry and Technology sector, Bytes Technology Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Bytes Technology Group's Operating Margin % falls into.
Bytes Technology Group 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.
Bytes Technology Group's Operating Margin % for the fiscal year that ended in Feb. 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.
Bytes Technology Group (BYITY) has a Operating Margin % of 26.68% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Bytes Technology Group and its competitors. This is near median its historical median of 27.39. Over the past decade, Bytes Technology Group's Operating Margin % has ranged from 3.18 to 30.59. According to the industry distribution chart, Bytes Technology Group ranks #161 out of 2818 companies in the Software industry, placing it in the top 5.7%.
Is Bytes Technology Group's Operating Margin % too high?
Bytes Technology Group's current Operating Margin % of 26.68% is near median its 10-year median of 27.39. Over the past 10 years, this metric has ranged from a low of 3.18 to a high of 30.59. The Software industry median Operating Margin % is 3.88. Bytes Technology Group's value of 26.68% is 588.5% above this industry median. Based on the distribution chart, Bytes Technology Group ranks #161 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Bytes Technology Group has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Bytes Technology Group's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Bytes Technology Group ranks #161 out of 2818 companies for Operating Margin %. This places Bytes Technology Group in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Bytes Technology Group's value of 26.68% is 588.5% above this benchmark. Historically, Bytes Technology Group's own Operating Margin % has ranged from 3.18 to 30.59 over the past decade. While the company's 10-year median is 27.39 vs. the industry median of 3.88, Bytes Technology Group 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 3.88, based on 2,818 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. Bytes Technology Group's current Operating Margin % of 26.68% is 588.5% 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 Bytes Technology Group and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bytes Technology Group's current Operating Margin % is 26.68%, which is near median its own 10-year median of 27.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bytes Technology Group stock overvalued right now?
Based on GuruFocus' analysis, Bytes Technology Group (BYITY) is currently considered Significantly Undervalued. The stock's GF Value™ is $14.56, compared to a current price of $9.88 — trading 32.1% below its estimated fair value. The current Operating Margin % is 26.68%, which is near median its 10-year median of 27.39 and 588.5% above the Software industry median of 3.88. Bytes Technology Group's overall GF Score™ is 66/100 with 2 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 Bytes Technology Group (BYITY), the current Operating Margin % is 26.68% as of Feb. 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 Bytes Technology Group (BYITY) Overvalued in 2026?
Based on GuruFocus' analysis, Bytes Technology Group stock appears to be undervalued.
The current stock price of $9.88 is trading 32.1% below its estimated GF Value™ of $14.56.
GuruFocus considers Bytes Technology Group to be Significantly Undervalued.
Key valuation signals for BYITY:
Operating Margin %: 26.68% (near median its 10-year median of 27.39)
GF Value™: $14.56 vs. price of $9.88 (32.1% below fair value)
Industry Position: 588.5% above the Software median (#161 of 2818)
No single metric tells the full story. See the BYITY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bytes Technology Group PLC is one of the UK's heading providers of IT software offerings and solutions, with a focus on cloud and security products. The Group enables effective and cost-efficient technology sourcing, adoption and management across software services, including in the areas of security and cloud. The company has only one reportable segment. The company's products are Software, Hardware, Services internal, and Services external. The company has presence in United Kingdom, Europe, Rest of world. The company generates majority of revenue from United Kingdom.
66GF Score
Get the complete analysis for BYITY
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BYITY has been successfully added to your 
