Evertz TechnologiesEVTZF -10.25%82 Operating Margin % is 20.19% as of Jan. 2026, which is 4% below its 10-year median of 20.93. GuruFocus rates EVTZF with a GF Score™ of 82/100 and a GF Value™ of $9.54 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 2,472 Hardware companies, Evertz Technologies ranks better than 89.56% on this metric.
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.
Evertz Technologies Operating Margin % Related Terms
Evertz Technologies Operating Margin % Historical Data
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The historical data trend for Evertz Technologies'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.
EVTZF vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Evertz Technologies'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.
Evertz Technologies Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Evertz Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Evertz Technologies'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.
Evertz Technologies'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.
Evertz Technologies (EVTZF) has a Operating Margin % of 20.19% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Evertz Technologies and its competitors. This is near median its historical median of 20.93. Over the past decade, Evertz Technologies' Operating Margin % has ranged from 16.21 to 24.58. According to the industry distribution chart, Evertz Technologies ranks #258 out of 2472 companies in the Hardware industry, placing it in the top 10.4%.
Is Evertz Technologies' Operating Margin % too high?
Evertz Technologies' current Operating Margin % of 20.19% is near median its 10-year median of 20.93. Over the past 10 years, this metric has ranged from a low of 16.21 to a high of 24.58. The Hardware industry median Operating Margin % is 3.80. Evertz Technologies' value of 20.19% is 431.3% above this industry median. Based on the distribution chart, Evertz Technologies ranks #258 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Evertz Technologies has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Evertz Technologies' Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Evertz Technologies ranks #258 out of 2472 companies for Operating Margin %. This places Evertz Technologies in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Evertz Technologies' value of 20.19% is 431.3% above this benchmark. Historically, Evertz Technologies' own Operating Margin % has ranged from 16.21 to 24.58 over the past decade. While the company's 10-year median is 20.93 vs. the industry median of 3.80, Evertz Technologies 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 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. Evertz Technologies's current Operating Margin % of 20.19% is 431.3% 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 Evertz Technologies and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Evertz Technologies's current Operating Margin % is 20.19%, which is near median its own 10-year median of 20.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Evertz Technologies stock overvalued right now?
Based on GuruFocus' analysis, Evertz Technologies (EVTZF) is currently considered Modestly Overvalued. The stock's GF Value™ is $9.54, compared to a current price of $11.64 — trading 22% above its estimated fair value. The current Operating Margin % is 20.19%, which is near median its 10-year median of 20.93 and 431.3% above the Hardware industry median of 3.80. Evertz Technologies' overall GF Score™ is 82/100 with 8 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 Evertz Technologies (EVTZF), the current Operating Margin % is 20.19% 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 Evertz Technologies (EVTZF) Overvalued in 2026?
Based on GuruFocus' analysis, Evertz Technologies stock appears to be overvalued.
The current stock price of $11.64 is trading 22% above its estimated GF Value™ of $9.54.
GuruFocus considers Evertz Technologies to be Modestly Overvalued.
Key valuation signals for EVTZF:
Operating Margin %: 20.19% (near median its 10-year median of 20.93)
GF Value™: $9.54 vs. price of $11.64 (22% above fair value)
Industry Position: 431.3% above the Hardware median (#258 of 2472)
No single metric tells the full story. See the EVTZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Evertz Technologies Ltd is a Canadian provider of telecommunications equipment and technology solutions to the television broadcast and new-media industries. Evertz equipment is used in the production, post-production, broadcast, and transmission of television content. Its solutions are sold to content creators, broadcasters, and service providers looking to support multi-channel digital and high definition television, and next generation Internet Protocol environments. More than half of the firm's revenue is generated in the United States.
82GF Score
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