Kentima Holding ABFRA:3K8 +13.19%58 Operating Margin % is 1.75% as of Mar. 2026, which is 67% above its 10-year median of 1.05. GuruFocus rates FRA:3K8 with a GF Score™ of 58/100 and a GF Value™ of €0.24. The stock has 1 warning sign investors should review. Among 2,822 Software companies, Kentima Holding AB ranks better than 65.24% on this metric.
Kentima Holding AB (FRA:3K8) 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.
Kentima Holding AB Operating Margin % Related Terms
Kentima Holding AB Operating Margin % Historical Data
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The historical data trend for Kentima Holding 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:3K8 vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, Kentima Holding 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.
Kentima Holding AB Operating Margin % vs Software Industry
For the Software industry and Technology sector, Kentima Holding AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kentima Holding 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.
Kentima Holding AB's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Kentima Holding AB (FRA:3K8) has a Operating Margin % of 1.75% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kentima Holding AB and its competitors. This is 67% above median its historical median of 1.05. According to the industry distribution chart, Kentima Holding AB ranks #981 out of 2822 companies in the Software industry, placing it in the top 34.8%.
Is Kentima Holding AB's Operating Margin % too high?
Kentima Holding AB's current Operating Margin % of 1.75% is 67% above median its 10-year median of 1.05. The Software industry median Operating Margin % is 3.89. Kentima Holding AB's value of 1.75% is 55% below this industry median. Based on the distribution chart, Kentima Holding AB ranks #981 out of 2822 companies in the Software industry, which is above the industry midpoint. Overall, Kentima Holding AB has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Kentima Holding AB's Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Kentima Holding AB ranks #981 out of 2822 companies for Operating Margin %. This puts Kentima Holding AB in the upper half of its industry. The industry median Operating Margin % is 3.89. Kentima Holding AB's value of 1.75% is 55% below this benchmark. While the company's 10-year median is 1.05 vs. the industry median of 3.89, Kentima Holding AB has consistently been below 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 3.89, based on 2,822 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. Kentima Holding AB's current Operating Margin % of 1.75% is 55% below 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 Kentima Holding AB and its competitors. For the Software industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kentima Holding AB's current Operating Margin % is 1.75%, which is 67% above median its own 10-year median of 1.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kentima Holding AB stock overvalued right now?
Kentima Holding AB (FRA:3K8) has a current Operating Margin % of 1.75%. The stock's GF Value™ is €0.24, compared to a current price of €0.21 — trading 14.2% below its estimated fair value. The current Operating Margin % is 1.75%, which is 67% above median its 10-year median of 1.05 and 55% below the Software industry median of 3.89. Kentima Holding AB's overall GF Score™ is 58/100 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 Kentima Holding AB (FRA:3K8), the current Operating Margin % is 1.75% 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 Kentima Holding AB (FRA:3K8) Overvalued in 2026?
Based on GuruFocus' analysis, Kentima Holding AB stock appears to be undervalued.
The current stock price of €0.21 is trading 14.2% below its estimated GF Value™ of €0.24.
Key valuation signals for FRA:3K8:
Operating Margin %: 1.75% (67% above median its 10-year median of 1.05)
GF Value™: €0.24 vs. price of €0.21 (14.2% below fair value)
Industry Position: 55% below the Software median (#981 of 2822)
No single metric tells the full story. See the FRA:3K8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kentima Holding AB develops, manufactures and sells products for the automation and security sector. Within the business area of Automation, it develops products that monitor machines and whole process plants. The products have a wide range of applications, are easy to integrate with other products and provide the operator with a modern, easy-to-use interface. Its automation products include HMI/SCADA software, industrial computers, and operator panels/boxes. Within the business area Security , it develops products for increased safety in the community. It offers VMS systems and security management platforms that meet market demands for flexibility, stability, and easy integration with other systems.
58GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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