Saab ABFRA:SDV1 -3.06%91 Operating Margin % is 9.96% as of Mar. 2026, which is 30% above its 10-year median of 7.67. GuruFocus rates FRA:SDV1 with a GF Score™ of 91/100 and a GF Value™ of €34.96 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 347 Aerospace & Defense companies, Saab AB ranks better than 61.96% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Saab AB's Operating Income for the
three
months ended in Mar. 2026 was €177 Mil. Saab AB's Revenue for the
three
months ended in Mar. 2026 was €1,779 Mil. Therefore, Saab AB's Operating Margin % for the quarter that ended in Mar. 2026 was 9.96%.
Good Sign:
Saab AB operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Saab AB's Operating Margin % or its related term are showing as below:
FRA:SDV1'
s Operating Margin % Range Over the Past 10 Years
Min: 1.95 Med: 7.67 Max: 10.18
Current: 10.18
FRA:SDV1's Operating Margin % is ranked better than 61.96% of 347
companies
in the Aerospace & Defense industry
Industry Median: 7.75
vs FRA:SDV1: 10.18
Saab AB's 5-Year Average Operating Margin % Growth Rate was 27.70% per year.
Saab AB's Operating Income for the
three
months ended in Mar. 2026 was €177 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €770 Mil.
Saab AB (FRA:SDV1) 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.
Saab AB Operating Margin % Related Terms
Saab AB Operating Margin % Historical Data
* Premium members only.
The historical data trend for Saab 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:SDV1 vs GE, RTX, BA: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Saab 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.
Saab AB Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Saab AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Saab 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.
Saab AB'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.
Saab AB (FRA:SDV1) has a Operating Margin % of 9.96% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Saab AB and its competitors. This is 30% above median its historical median of 7.67. Over the past decade, Saab AB's Operating Margin % has ranged from 1.95 to 10.18. According to the industry distribution chart, Saab AB ranks #132 out of 347 companies in the Aerospace & Defense industry, placing it in the top 38%.
Is Saab AB's Operating Margin % too high?
Saab AB's current Operating Margin % of 9.96% is 30% above median its 10-year median of 7.67. Over the past 10 years, this metric has ranged from a low of 1.95 to a high of 10.18. The Aerospace & Defense industry median Operating Margin % is 7.75. Saab AB's value of 9.96% is 28.5% above this industry median. Based on the distribution chart, Saab AB ranks #132 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Saab AB has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Saab AB's Operating Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Saab AB ranks #132 out of 347 companies for Operating Margin %. This puts Saab AB in the upper half of its industry. The industry median Operating Margin % is 7.75. Saab AB's value of 9.96% is 28.5% above this benchmark. Historically, Saab AB's own Operating Margin % has ranged from 1.95 to 10.18 over the past decade. While the company's 10-year median is 7.67 vs. the industry median of 7.75, Saab AB 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 an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 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. Saab AB's current Operating Margin % of 9.96% is 28.5% 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 Saab AB and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Saab AB's current Operating Margin % is 9.96%, which is 30% above median its own 10-year median of 7.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Saab AB stock overvalued right now?
Based on GuruFocus' analysis, Saab AB (FRA:SDV1) is currently considered Modestly Overvalued. The stock's GF Value™ is €34.96, compared to a current price of €44.33 — trading 26.8% above its estimated fair value. The current Operating Margin % is 9.96%, which is 30% above median its 10-year median of 7.67 and 28.5% above the Aerospace & Defense industry median of 7.75. Saab AB's overall GF Score™ is 91/100 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 Saab AB (FRA:SDV1), the current Operating Margin % is 9.96% 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 Saab AB (FRA:SDV1) Overvalued in 2026?
Based on GuruFocus' analysis, Saab AB stock appears to be overvalued.
The current stock price of €44.33 is trading 26.8% above its estimated GF Value™ of €34.96.
GuruFocus considers Saab AB to be Modestly Overvalued.
Key valuation signals for FRA:SDV1:
Operating Margin %: 9.96% (30% above median its 10-year median of 7.67)
GF Value™: €34.96 vs. price of €44.33 (26.8% above fair value)
Industry Position: 28.5% above the Aerospace & Defense median (#132 of 347)
No single metric tells the full story. See the FRA:SDV1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Saab supplies products and services for military, defense, and civil security. The company operates in four segments: aeronautics, dynamics, surveillance, and Kockums. Aeronautics involves the manufacturing and support of defense and commercial aerial systems. Dynamics produces combat weapons and defense training and management systems. Surveillance supplies security services, and creates traffic management technology and aviation parts. Kockums offers solutions for naval missions. Over three fourths of Saab's sales are from the defense sector. The company sells to multiple geographic regions, but over half of its sales come from Europe.
91GF Score
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