Operating Margin % is calculated as Operating Income divided by its Revenue. Polar Power's Operating Income for the
three
months ended in Mar. 2026 was €0.02 Mil. Polar Power's Revenue for the
three
months ended in Mar. 2026 was €1.50 Mil. Therefore, Polar Power's Operating Margin % for the quarter that ended in Mar. 2026 was 1.40%.
Warning Sign:
Polar Power Inc operating margin has been in a 5-year decline. The average rate of decline per year is -3.2%.
The historical rank and industry rank for Polar Power's Operating Margin % or its related term are showing as below:
FRA:PPW0'
s Operating Margin % Range Over the Past 10 Years
Min: -143.55 Med: -24.83 Max: 32.47
Current: -108.45
FRA:PPW0's Operating Margin % is ranked worse than 96.38% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs FRA:PPW0: -108.45
Polar Power's 5-Year Average Operating Margin % Growth Rate was -3.20% per year.
Polar Power's Operating Income for the
three
months ended in Mar. 2026 was €0.02 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €-5.84 Mil.
Warning Sign:
Polar Power Inc had lost money in 75% of the time over the past 12quarters.
Polar Power (FRA:PPW0) 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.
Polar Power Operating Margin % Related Terms
Polar Power Operating Margin % Historical Data
* Premium members only.
The historical data trend for Polar Power'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:PPW0 vs XPON, PWDY, TOGI: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Polar Power'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.
Polar Power Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Polar Power's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Polar Power'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.
Polar Power'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.
Polar Power (FRA:PPW0) has a Operating Margin % of 1.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Polar Power and its competitors. According to the industry distribution chart, Polar Power ranks #2928 out of 3038 companies in the Industrial Products industry, placing it in the top 96.4%.
Is Polar Power's Operating Margin % too high?
Polar Power's current Operating Margin % is 1.40%. The Industrial Products industry median Operating Margin % is 6.53. Polar Power's value of 1.40% is 78.6% below this industry median. Based on the distribution chart, Polar Power ranks #2928 out of 3038 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, Polar Power has a GF Score™ of 45/100, reflecting its overall financial health beyond just this single metric.
How does Polar Power's Operating Margin % compare to XPON and PWDY?
According to the Industrial Products industry distribution chart, Polar Power ranks #2928 out of 3038 companies for Operating Margin %. This places Polar Power in the lower half of its industry. The industry median Operating Margin % is 6.53. Polar Power's value of 1.40% is 78.6% below this benchmark. 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Polar Power's current Operating Margin % of 1.40% is 78.6% 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 Polar Power and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Polar Power's current Operating Margin % is 1.40%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Polar Power stock overvalued right now?
Polar Power (FRA:PPW0) has a current Operating Margin % of 1.40%. The stock's GF Value™ is €1.82, compared to a current price of €2.88 — trading 58.5% above its estimated fair value. The current Operating Margin % is 1.40% and 78.6% below the Industrial Products industry median of 6.53. Polar Power's overall GF Score™ is 45/100 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 Polar Power (FRA:PPW0), the current Operating Margin % is 1.40% 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 Polar Power (FRA:PPW0) Overvalued in 2026?
Based on GuruFocus' analysis, Polar Power stock appears to be overvalued.
The current stock price of €2.88 is trading 58.5% above its estimated GF Value™ of €1.82.
Key valuation signals for FRA:PPW0:
Operating Margin %: 1.40%
GF Value™: €1.82 vs. price of €2.88 (58.5% above fair value)
Industry Position: 78.6% below the Industrial Products median (#2928 of 3038)
No single metric tells the full story. See the FRA:PPW0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Polar Power Inc is engaged in designing, manufacturing, and selling DC power generators, renewable energy, and cooling systems for applications in the telecommunications market and, to a lesser extent, in other markets, including military, electric vehicle, marine, and industrial. The company's products include DC generators, backup DC generators, hybrid power systems, Li-Ion battery systems, Marine DC generators, and others. The company's geographical presence is in the United States, Canada, Australia and South Pacific Islands, Other Asia Pacific, Europe and Middle East, United Kingdom, and South Africa.
45GF Score
Get the complete analysis for FRA:PPW0
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