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Simulations PlusFRA:SD3 -0.64%82 Operating Margin % is 20.56% as of May. 2026, which is 26% below its 10-year median of 27.78. GuruFocus rates FRA:SD3 with a GF Score™ of 82/100 and a GF Value™ of €29.72. The stock has 7 warning signs investors should review. Among 664 Healthcare Providers & Services companies, Simulations Plus ranks better than 79.37% on this metric.
Simulations Plus Inc operating margin has been in a 5-year decline. The average rate of decline per year is -24.3%.
The historical rank and industry rank for Simulations Plus's Operating Margin % or its related term are showing as below:
FRA:SD3'
s Operating Margin % Range Over the Past 10 Years
Min: 8.2 Med: 27.78 Max: 36.21
Current: 14.02
FRA:SD3's Operating Margin % is ranked better than 79.37% of 664
companies
in the Healthcare Providers & Services industry
Industry Median: 5.03
vs FRA:SD3: 14.02
Simulations Plus's 5-Year Average Operating Margin % Growth Rate was -24.30% per year.
Simulations Plus (FRA:SD3) 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.
Simulations Plus Operating Margin % Related Terms
Simulations Plus Operating Margin % Historical Data
* Premium members only.
The historical data trend for Simulations Plus'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:SD3 vs CTEV, TBRG, CARL: Operating Margin % Comparison
For the Health Information Services subindustry, Simulations Plus'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.
Simulations Plus Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Simulations Plus's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Simulations Plus'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.
Simulations Plus's Operating Margin % for the fiscal year that ended in Aug. 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.
Simulations Plus (FRA:SD3) has a Operating Margin % of 20.56% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Simulations Plus and its competitors. This is 26% below median its historical median of 27.78. Over the past decade, Simulations Plus' Operating Margin % has ranged from 8.20 to 36.21. According to the industry distribution chart, Simulations Plus ranks #137 out of 664 companies in the Healthcare Providers & Services industry, placing it in the top 20.6%.
Is Simulations Plus' Operating Margin % too high?
Simulations Plus' current Operating Margin % of 20.56% is 26% below median its 10-year median of 27.78. Over the past 10 years, this metric has ranged from a low of 8.20 to a high of 36.21. The Healthcare Providers & Services industry median Operating Margin % is 5.03. Simulations Plus' value of 20.56% is 308.7% above this industry median. Based on the distribution chart, Simulations Plus ranks #137 out of 664 companies in the Healthcare Providers & Services industry, which is in the top quartile — a strong position relative to peers. Overall, Simulations Plus has a GF Score™ of 82/100, reflecting its overall financial health beyond just this single metric.
How does Simulations Plus' Operating Margin % compare to CTEV and TBRG?
According to the Healthcare Providers & Services industry distribution chart, Simulations Plus ranks #137 out of 664 companies for Operating Margin %. This places Simulations Plus in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.03. Simulations Plus' value of 20.56% is 308.7% above this benchmark. Historically, Simulations Plus' own Operating Margin % has ranged from 8.20 to 36.21 over the past decade. While the company's 10-year median is 27.78 vs. the industry median of 5.03, Simulations Plus 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 Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 5.03, based on 664 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. Simulations Plus's current Operating Margin % of 20.56% is 308.7% 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 Simulations Plus and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 5.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simulations Plus's current Operating Margin % is 20.56%, which is 26% below median its own 10-year median of 27.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simulations Plus stock overvalued right now?
Simulations Plus (FRA:SD3) has a current Operating Margin % of 20.56%. The stock's GF Value™ is €29.72, compared to a current price of €15.50 — trading 47.8% below its estimated fair value. The current Operating Margin % is 20.56%, which is 26% below median its 10-year median of 27.78 and 308.7% above the Healthcare Providers & Services industry median of 5.03. Simulations Plus' overall GF Score™ is 82/100 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 Simulations Plus (FRA:SD3), the current Operating Margin % is 20.56% as of May. 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 Simulations Plus (FRA:SD3) Overvalued in 2026?
Based on GuruFocus' analysis, Simulations Plus stock appears to be undervalued.
The current stock price of €15.50 is trading 47.8% below its estimated GF Value™ of €29.72.
Key valuation signals for FRA:SD3:
Operating Margin %: 20.56% (26% below median its 10-year median of 27.78)
GF Value™: €29.72 vs. price of €15.50 (47.8% below fair value)
Industry Position: 308.7% above the Healthcare Providers & Services median (#137 of 664)
No single metric tells the full story. See the FRA:SD3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simulations Plus Inc is engaged in the software industry. It develops and produces software for use in pharmaceutical research and education, and provides consulting and contract research services to the pharmaceutical industry. The company's operating segments include Software and services. The company offers software products for pharmaceutical research such as ADMET (Absorption, Distribution, Metabolism, Excretion, and Toxicity). It generates maximum revenue from the software segment. Maximum revenue is earned from USA following EMEA and Asia Pacific.
82GF 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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