Sleep Cycle ABFRA:1CW +0.24%84 Operating Margin % is 12.80% as of Mar. 2026, which is 56% below its 10-year median of 29.26. GuruFocus rates FRA:1CW with a GF Score™ of 84/100 and a GF Value™ of €2.59. The stock has 7 warning signs investors should review. Among 2,811 Software companies, Sleep Cycle AB ranks better than 91.18% on this metric.
Sleep Cycle AB (FRA:1CW) 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.
Sleep Cycle AB Operating Margin % Related Terms
Sleep Cycle AB Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sleep Cycle AB'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.
FRA:1CW vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, Sleep Cycle AB'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.
Sleep Cycle AB Operating Margin % vs Software Industry
For the Software industry and Technology sector, Sleep Cycle AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sleep Cycle AB'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.
Sleep Cycle AB'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.
Sleep Cycle AB (FRA:1CW) has a Operating Margin % of 12.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sleep Cycle AB and its competitors. This is 56% below median its historical median of 29.26. Over the past decade, Sleep Cycle AB's Operating Margin % has ranged from 5.43 to 40.74. According to the industry distribution chart, Sleep Cycle AB ranks #248 out of 2811 companies in the Software industry, placing it in the top 8.8%.
Is Sleep Cycle AB's Operating Margin % too high?
Sleep Cycle AB's current Operating Margin % of 12.80% is 56% below median its 10-year median of 29.26. Over the past 10 years, this metric has ranged from a low of 5.43 to a high of 40.74. The Software industry median Operating Margin % is 3.87. Sleep Cycle AB's value of 12.80% is 230.7% above this industry median. Based on the distribution chart, Sleep Cycle AB ranks #248 out of 2811 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Sleep Cycle AB has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Sleep Cycle AB's Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Sleep Cycle AB ranks #248 out of 2811 companies for Operating Margin %. This places Sleep Cycle AB in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Sleep Cycle AB's value of 12.80% is 230.7% above this benchmark. Historically, Sleep Cycle AB's own Operating Margin % has ranged from 5.43 to 40.74 over the past decade. While the company's 10-year median is 29.26 vs. the industry median of 3.87, Sleep Cycle AB 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 2,811 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. Sleep Cycle AB's current Operating Margin % of 12.80% is 230.7% 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 Sleep Cycle AB 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. Sleep Cycle AB's current Operating Margin % is 12.80%, which is 56% below median its own 10-year median of 29.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sleep Cycle AB stock overvalued right now?
Sleep Cycle AB (FRA:1CW) has a current Operating Margin % of 12.80%. The stock's GF Value™ is €2.59, compared to a current price of €2.11 — trading 18.5% below its estimated fair value. The current Operating Margin % is 12.80%, which is 56% below median its 10-year median of 29.26 and 230.7% above the Software industry median of 3.87. Sleep Cycle AB's overall GF Score™ is 84/100 with 7 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 Sleep Cycle AB (FRA:1CW), the current Operating Margin % is 12.80% 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 Sleep Cycle AB (FRA:1CW) Overvalued in 2026?
Based on GuruFocus' analysis, Sleep Cycle AB stock appears to be undervalued.
The current stock price of €2.11 is trading 18.5% below its estimated GF Value™ of €2.59.
Key valuation signals for FRA:1CW:
Operating Margin %: 12.80% (56% below median its 10-year median of 29.26)
GF Value™: €2.59 vs. price of €2.11 (18.5% below fair value)
Industry Position: 230.7% above the Software median (#248 of 2811)
No single metric tells the full story. See the FRA:1CW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sleep Cycle AB is a sleep tracker application. It helps people understand their sleep habits and improve their sleep. The mobile application helps users fall asleep more easily, tracks sleep patterns through the night and wakes up users in the light-sleep phase, providing valuable insights designed to improve sleep quality. Geographically group operates in Sweden and other countries in which all of revenue is generated from Sweden.
84GF Score
Get the complete analysis for FRA:1CW
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
FRA:1CW has been successfully added to your 
