Coda Octopus GroupCODA -0.74%89 Operating Margin % is 26.40% as of Apr. 2026, which is 42% above its 10-year median of 18.64. GuruFocus rates CODA with a GF Score™ of 89/100 and a GF Value™ of $10.11 (Fairly Valued). The stock has 1 warning sign investors should review. Among 347 Aerospace & Defense companies, Coda Octopus Group ranks better than 89.63% on this metric.
Coda Octopus Group (NAS:CODA) 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.
Coda Octopus Group Operating Margin % Related Terms
Coda Octopus Group Operating Margin % Historical Data
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The historical data trend for Coda Octopus 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.
CODA vs BYRN, SPAI, SIF: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Coda Octopus 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.
Coda Octopus Group Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Coda Octopus Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Coda Octopus Group'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.
Coda Octopus Group's Operating Margin % for the fiscal year that ended in Oct. 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.
Coda Octopus Group (CODA) has a Operating Margin % of 26.40% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Coda Octopus Group and its competitors. This is 42% above median its historical median of 18.64. Over the past decade, Coda Octopus Group's Operating Margin % has ranged from 13.99 to 26.23. According to the industry distribution chart, Coda Octopus Group ranks #36 out of 347 companies in the Aerospace & Defense industry, placing it in the top 10.4%.
Is Coda Octopus Group's Operating Margin % too high?
Coda Octopus Group's current Operating Margin % of 26.40% is 42% above median its 10-year median of 18.64. Over the past 10 years, this metric has ranged from a low of 13.99 to a high of 26.23. The Aerospace & Defense industry median Operating Margin % is 7.75. Coda Octopus Group's value of 26.40% is 240.6% above this industry median. Based on the distribution chart, Coda Octopus Group ranks #36 out of 347 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Coda Octopus Group has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Coda Octopus Group's Operating Margin % compare to BYRN and SPAI?
According to the Aerospace & Defense industry distribution chart, Coda Octopus Group ranks #36 out of 347 companies for Operating Margin %. This places Coda Octopus Group in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.75. Coda Octopus Group's value of 26.40% is 240.6% above this benchmark. Historically, Coda Octopus Group's own Operating Margin % has ranged from 13.99 to 26.23 over the past decade. While the company's 10-year median is 18.64 vs. the industry median of 7.75, Coda Octopus 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 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. Coda Octopus Group's current Operating Margin % of 26.40% is 240.6% 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 Coda Octopus Group 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. Coda Octopus Group's current Operating Margin % is 26.40%, which is 42% above median its own 10-year median of 18.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coda Octopus Group stock overvalued right now?
Based on GuruFocus' analysis, Coda Octopus Group (CODA) is currently considered Fairly Valued. The stock's GF Value™ is $10.11, compared to a current price of $9.40 — trading 7% below its estimated fair value. The current Operating Margin % is 26.40%, which is 42% above median its 10-year median of 18.64 and 240.6% above the Aerospace & Defense industry median of 7.75. Coda Octopus Group's overall GF Score™ is 89/100 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 Coda Octopus Group (CODA), the current Operating Margin % is 26.40% as of Apr. 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 Coda Octopus Group (CODA) Overvalued in 2026?
Based on GuruFocus' analysis, Coda Octopus Group stock appears to be undervalued.
The current stock price of $9.40 is trading 7% below its estimated GF Value™ of $10.11.
GuruFocus considers Coda Octopus Group to be Fairly Valued.
Key valuation signals for CODA:
Operating Margin %: 26.40% (42% above median its 10-year median of 18.64)
GF Value™: $10.11 vs. price of $9.40 (7% below fair value)
Industry Position: 240.6% above the Aerospace & Defense median (#36 of 347)
No single metric tells the full story. See the CODA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coda Octopus Group Inc develops underwater technologies and equipment for imaging, mapping defense, and survey applications. The company operates in three distinct business segments: the Marine Technology business, Acoustic Sensors and Material Business and the Defense Engineering Services Business. Its geographical segments are the Americas, Europe, Australia/Asia, and the Middle East/Africa. The majority of revenue is derived from the Products segment.
89GF Score
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