Vertex (FRA:56X) Operating Margin %: -8.31% (As of Mar. 2026)


FRA:56X Vertex Inc FRA:56X
61 GF Score
Price €9.07
GF Value €29.30
! 3 Warning Signs
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What is Vertex Operating Margin %?

Vertex FRA:56X -5.12% 61 Operating Margin % is -8.31% as of Mar. 2026. GuruFocus rates FRA:56X with a GF Score™ of 61/100 and a GF Value™ of €29.30. The stock has 3 warning signs investors should review. Among 2,820 Software companies, Vertex ranks worse than 65.07% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Vertex's Operating Income for the three months ended in Mar. 2026 was €-14.1 Mil. Vertex's Revenue for the three months ended in Mar. 2026 was €170.1 Mil. Therefore, Vertex's Operating Margin % for the quarter that ended in Mar. 2026 was -8.31%.

The historical rank and industry rank for Vertex's Operating Margin % or its related term are showing as below:

FRA:56X' s Operating Margin % Range Over the Past 10 Years
Min: -27.96   Med: -1.17   Max: 10.96
Current: -2.71


FRA:56X's Operating Margin % is ranked worse than
65.07% of 2820 companies
in the Software industry
Industry Median: 3.865 vs FRA:56X: -2.71

Vertex's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Vertex's Operating Income for the three months ended in Mar. 2026 was €-14.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €-18.0 Mil.


Vertex  (FRA:56X) 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 Nokia’s 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.


Vertex Operating Margin % Related Terms


Vertex Operating Margin % Historical Data

* Premium members only.

The historical data trend for Vertex'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.

Vertex Operating Margin % Chart

Vertex Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial -0.69 -1.64 -3.06 2.29 -1.96

Vertex Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -5.77 -0.85 0.17 -1.65 -8.31

FRA:56X vs PLUS, GRND, ALRM: Operating Margin % Comparison

For the Software - Application subindustry, Vertex'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.


Vertex Operating Margin % vs Software Industry

For the Software industry and Technology sector, Vertex's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Vertex's Operating Margin % falls into.


FRA:56X
61GF Score
Vertex Inc FRA:56X
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Vertex Operating Margin % Calculation

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.

Vertex's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-12.527 / 639.171
=-1.96 %

Vertex's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=-14.138 / 170.099
=-8.31 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -8.31% mean?
Vertex (FRA:56X) has a Operating Margin % of -8.31% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vertex and its competitors. According to the industry distribution chart, Vertex ranks #1835 out of 2820 companies in the Software industry, placing it in the top 65.1%.
Is Vertex's Operating Margin % too high?
Vertex's current Operating Margin % is -8.31%. Based on the distribution chart, Vertex ranks #1835 out of 2820 companies in the Software industry, which is below the industry midpoint. Overall, Vertex has a GF Score™ of 61/100, reflecting its overall financial health beyond just this single metric.
How does Vertex's Operating Margin % compare to PLUS and GRND?
According to the Software industry distribution chart, Vertex ranks #1835 out of 2820 companies for Operating Margin %. This places Vertex in the lower half of its industry. The industry median Operating Margin % is 3.87. 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 2,820 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. 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 Vertex 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. Vertex's current Operating Margin % is -8.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vertex stock overvalued right now?
Vertex (FRA:56X) has a current Operating Margin % of -8.31%. The stock's GF Value™ is €29.30, compared to a current price of €9.07 — trading 69% below its estimated fair value. The current Operating Margin % is -8.31%. Vertex's overall GF Score™ is 61/100 with 3 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 Vertex (FRA:56X), the current Operating Margin % is -8.31% 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 Vertex (FRA:56X) Overvalued in 2026?

Based on GuruFocus' analysis, Vertex stock appears to be undervalued. The current stock price of €9.07 is trading 69% below its estimated GF Value™ of €29.30.

Key valuation signals for FRA:56X:

  • Operating Margin %: -8.31%
  • GF Value™: €29.30 vs. price of €9.07 (69% below fair value)
  • GF Score™: 61/100 with 3 warning signs

No single metric tells the full story. See the FRA:56X stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Vertex Business Description

Address 2301 Renaissance Boulevard, King of Prussia, PA, USA, 19406
Vertex Inc is a provider of tax technology and services. Its software, content, and services help customers stay in compliance with indirect taxes that occur in taxing jurisdictions all over the world. It provides cloud-based and on-premise solutions to specific industries for every line of tax, including income, sales, consumer use, value-added, and payroll. The company offers solutions such as tax determination, Tax Data Management, document management, and compliance and reporting, among others. The company derives revenue from software subscriptions.
61GF Score

Get the complete analysis for FRA:56X

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€9.07
Price
€29.30
GF Value