Super Micro ComputerFRA:MS50 +0.58%84 Operating Margin % is 6.11% as of Mar. 2026, which is 41% above its 10-year median of 4.33. GuruFocus rates FRA:MS50 with a GF Score™ of 84/100 and a GF Value™ of €17.47 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 2,471 Hardware companies, Super Micro Computer ranks better than 53.74% on this metric.
Super Micro Computer (FRA:MS50) 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.
Super Micro Computer Operating Margin % Related Terms
Super Micro Computer Operating Margin % Historical Data
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The historical data trend for Super Micro Computer'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:MS50 vs IONQ, P, HPQ: Operating Margin % Comparison
For the Computer Hardware subindustry, Super Micro Computer'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.
Super Micro Computer Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Super Micro Computer's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Super Micro Computer's Operating Margin % falls into.
Super Micro Computer 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.
Super Micro Computer's Operating Margin % for the fiscal year that ended in Jun. 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.
Super Micro Computer (FRA:MS50) has a Operating Margin % of 6.11% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Super Micro Computer and its competitors. This is 41% above median its historical median of 4.33. Over the past decade, Super Micro Computer's Operating Margin % has ranged from 2.57 to 10.68. According to the industry distribution chart, Super Micro Computer ranks #1143 out of 2471 companies in the Hardware industry, placing it in the top 46.3%.
Is Super Micro Computer's Operating Margin % too high?
Super Micro Computer's current Operating Margin % of 6.11% is 41% above median its 10-year median of 4.33. Over the past 10 years, this metric has ranged from a low of 2.57 to a high of 10.68. The Hardware industry median Operating Margin % is 3.80. Super Micro Computer's value of 6.11% is 60.8% above this industry median. Based on the distribution chart, Super Micro Computer ranks #1143 out of 2471 companies in the Hardware industry, which is above the industry midpoint. Overall, Super Micro Computer has a GF Score™ of 84/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Super Micro Computer's Operating Margin % compare to IONQ and P?
According to the Hardware industry distribution chart, Super Micro Computer ranks #1143 out of 2471 companies for Operating Margin %. This puts Super Micro Computer in the upper half of its industry. The industry median Operating Margin % is 3.80. Super Micro Computer's value of 6.11% is 60.8% above this benchmark. Historically, Super Micro Computer's own Operating Margin % has ranged from 2.57 to 10.68 over the past decade. While the company's 10-year median is 4.33 vs. the industry median of 3.80, Super Micro Computer 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 2,471 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. Super Micro Computer's current Operating Margin % of 6.11% is 60.8% 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 Super Micro Computer 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. Super Micro Computer's current Operating Margin % is 6.11%, which is 41% above median its own 10-year median of 4.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Super Micro Computer stock overvalued right now?
Based on GuruFocus' analysis, Super Micro Computer (FRA:MS50) is currently considered Possible Value Trap. The stock's GF Value™ is €17.47, compared to a current price of €6.56 — trading 62.4% below its estimated fair value. The current Operating Margin % is 6.11%, which is 41% above median its 10-year median of 4.33 and 60.8% above the Hardware industry median of 3.80. Super Micro Computer's overall GF Score™ is 84/100 with 5 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 Super Micro Computer (FRA:MS50), the current Operating Margin % is 6.11% 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 Super Micro Computer (FRA:MS50) Overvalued in 2026?
Based on GuruFocus' analysis, Super Micro Computer stock appears to be undervalued.
The current stock price of €6.56 is trading 62.4% below its estimated GF Value™ of €17.47.
GuruFocus considers Super Micro Computer to be Possible Value Trap.
Key valuation signals for FRA:MS50:
Operating Margin %: 6.11% (41% above median its 10-year median of 4.33)
GF Value™: €17.47 vs. price of €6.56 (62.4% below fair value)
Industry Position: 60.8% above the Hardware median (#1143 of 2471)
No single metric tells the full story. See the FRA:MS50 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Super Micro Computer Inc provides high-performance server technology services to cloud computing, data centers, high-performance computing, and the Internet of Things embedded markets. Its solutions include servers, storage systems, modular blade servers, workstations, full-rack scale solutions, networking devices, server sub-systems, and server management. These turn-key solutions are designed, developed, validated, and installed for AI datacenters. The company has one operating segment that develops and provides high-performance server solutions based upon a, modular and open-standard architecture. More than half of the firm's revenue is generated in the United States, with the rest coming from Europe, Asia, and other regions.
84GF Score
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