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.
CCC Intelligent Solutions Holdings Operating Margin % Related Terms
CCC Intelligent Solutions Holdings Operating Margin % Historical Data
* 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.
FRA:0B1 vs FSLY, WK, DBD: Operating Margin % Comparison
For the Software - Application subindustry, CCC Intelligent Solutions Holdings'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.
CCC Intelligent Solutions Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, CCC Intelligent Solutions Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CCC Intelligent Solutions Holdings'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.
* 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.
CCC Intelligent Solutions Holdings (FRA:0B1) has a Operating Margin % of 17.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on CCC Intelligent Solutions Holdings and its competitors. This is 158% above median its historical median of 6.74. According to the industry distribution chart, CCC Intelligent Solutions Holdings ranks #583 out of 2817 companies in the Software industry, placing it in the top 20.7%.
Is CCC Intelligent Solutions Holdings' Operating Margin % too high?
CCC Intelligent Solutions Holdings' current Operating Margin % of 17.36% is 158% above median its 10-year median of 6.74. The Software industry median Operating Margin % is 3.79. CCC Intelligent Solutions Holdings' value of 17.36% is 358% above this industry median. Based on the distribution chart, CCC Intelligent Solutions Holdings ranks #583 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, CCC Intelligent Solutions Holdings has a GF Score™ of 35/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does CCC Intelligent Solutions Holdings' Operating Margin % compare to FSLY and WK?
According to the Software industry distribution chart, CCC Intelligent Solutions Holdings ranks #583 out of 2817 companies for Operating Margin %. This places CCC Intelligent Solutions Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.79. CCC Intelligent Solutions Holdings' value of 17.36% is 358% above this benchmark. While the company's 10-year median is 6.74 vs. the industry median of 3.79, CCC Intelligent Solutions Holdings 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 3.79, based on 2,817 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. CCC Intelligent Solutions Holdings's current Operating Margin % of 17.36% is 358% 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 CCC Intelligent Solutions Holdings and its competitors. For the Software industry, the median Operating Margin % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CCC Intelligent Solutions Holdings's current Operating Margin % is 17.36%, which is 158% above median its own 10-year median of 6.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CCC Intelligent Solutions Holdings stock overvalued right now?
Based on GuruFocus' analysis, CCC Intelligent Solutions Holdings (FRA:0B1) is currently considered Possible Value Trap. The stock's GF Value™ is €11.21, compared to a current price of €4.34 — trading 61.3% below its estimated fair value. The current Operating Margin % is 17.36%, which is 158% above median its 10-year median of 6.74 and 358% above the Software industry median of 3.79. CCC Intelligent Solutions Holdings' overall GF Score™ is 35/100 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 CCC Intelligent Solutions Holdings (FRA:0B1), the current Operating Margin % is 17.36% 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 CCC Intelligent Solutions Holdings (FRA:0B1) Overvalued in 2026?
Based on GuruFocus' analysis, CCC Intelligent Solutions Holdings stock appears to be undervalued.
The current stock price of €4.34 is trading 61.3% below its estimated GF Value™ of €11.21.
GuruFocus considers CCC Intelligent Solutions Holdings to be Possible Value Trap.
Key valuation signals for FRA:0B1:
Operating Margin %: 17.36% (158% above median its 10-year median of 6.74)
GF Value™: €11.21 vs. price of €4.34 (61.3% below fair value)
Industry Position: 358% above the Software median (#583 of 2817)
No single metric tells the full story. See the FRA:0B1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CCC Intelligent Solutions Holdings Business Description
CCC Intelligent Solutions Holdings Inc is a provider of cloud, mobile, AI, telematics, hyperscale technologies, and applications for the property and casualty insurance economy. The company's SaaS platform connects trading partners, facilitates commerce, and supports mission-critical, AI-enabled digital workflows. It operates in a single segment being Domestic segment, which provides SAAS platform for the P&C insurance economy and derives revenues from providing customers with software subscriptions to the platform in addition to providing professional services and non-software services. The company has its presence in the United States and China. The majority of the revenue is generated from the United States.
35GF Score
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