Netcompany Group ASCHIX:NETCC 91 Operating Margin % is 9.99% as of Mar. 2026, which is 48% below its 10-year median of 19.39. GuruFocus rates CHIX:NETCC with a GF Score™ of 91/100 and a GF Value™ of kr401.55 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,818 Software companies, Netcompany Group AS ranks better than 71.65% on this metric.
Netcompany Group AS (CHIX:NETCc) 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.
Netcompany Group AS Operating Margin % Related Terms
Netcompany Group AS Operating Margin % Historical Data
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The historical data trend for Netcompany Group AS'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.
CHIX:NETCC vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Netcompany Group AS'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.
Netcompany Group AS Operating Margin % vs Software Industry
For the Software industry and Technology sector, Netcompany Group AS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Netcompany Group AS's Operating Margin % falls into.
Netcompany Group AS 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.
Netcompany Group AS's Operating Margin % for the fiscal year that ended in Dec. 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.
Netcompany Group AS (CHIX:NETCC) has a Operating Margin % of 9.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Netcompany Group AS and its competitors. This is 48% below median its historical median of 19.39. Over the past decade, Netcompany Group AS's Operating Margin % has ranged from 9.51 to 22.72. According to the industry distribution chart, Netcompany Group AS ranks #799 out of 2818 companies in the Software industry, placing it in the top 28.4%.
Is Netcompany Group AS's Operating Margin % too high?
Netcompany Group AS's current Operating Margin % of 9.99% is 48% below median its 10-year median of 19.39. Over the past 10 years, this metric has ranged from a low of 9.51 to a high of 22.72. The Software industry median Operating Margin % is 3.87. Netcompany Group AS's value of 9.99% is 158.5% above this industry median. Based on the distribution chart, Netcompany Group AS ranks #799 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Netcompany Group AS has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Netcompany Group AS's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Netcompany Group AS ranks #799 out of 2818 companies for Operating Margin %. This puts Netcompany Group AS in the upper half of its industry. The industry median Operating Margin % is 3.87. Netcompany Group AS's value of 9.99% is 158.5% above this benchmark. Historically, Netcompany Group AS's own Operating Margin % has ranged from 9.51 to 22.72 over the past decade. While the company's 10-year median is 19.39 vs. the industry median of 3.87, Netcompany Group AS 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 3.87, 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. Netcompany Group AS's current Operating Margin % of 9.99% is 158.5% 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 Netcompany Group AS 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. Netcompany Group AS's current Operating Margin % is 9.99%, which is 48% below median its own 10-year median of 19.39. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Netcompany Group AS stock overvalued right now?
Based on GuruFocus' analysis, Netcompany Group AS (CHIX:NETCC) is currently considered Modestly Undervalued. The stock's GF Value™ is kr401.55, compared to a current price of kr301.80 — trading 24.8% below its estimated fair value. The current Operating Margin % is 9.99%, which is 48% below median its 10-year median of 19.39 and 158.5% above the Software industry median of 3.87. Netcompany Group AS's overall GF Score™ is 91/100 with 3 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 Netcompany Group AS (CHIX:NETCC), the current Operating Margin % is 9.99% 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 Netcompany Group AS (CHIX:NETCC) Overvalued in 2026?
Based on GuruFocus' analysis, Netcompany Group AS stock appears to be undervalued.
The current stock price of kr301.80 is trading 24.8% below its estimated GF Value™ of kr401.55.
GuruFocus considers Netcompany Group AS to be Modestly Undervalued.
Key valuation signals for CHIX:NETCC:
Operating Margin %: 9.99% (48% below median its 10-year median of 19.39)
GF Value™: kr401.55 vs. price of kr301.80 (24.8% below fair value)
Industry Position: 158.5% above the Software median (#799 of 2818)
No single metric tells the full story. See the CHIX:NETCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Netcompany Group AS is an information technology services company. The company is engaged in delivering business-critical IT solutions to large Public and Private sector customers and supporting them in their digital transformation journeys. Its offerings include software solutions and digital platforms such as Pulse, Easley AI and Solon Tax among others. The company's business segments are Denmark, SEE & EUI, the United Kingdom, Norway, the Netherlands and Banking Services. It generates the majority of revenue from the Denmark segment.
91GF Score
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