Substrate Artificial InteligenceFRA:U8S -6.17% Operating Margin % is 8.03% as of Dec. 2025. The stock has 7 warning signs investors should review. Among 2,818 Software companies, Substrate Artificial Inteligence ranks better than 70.51% on this metric.
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.
Substrate Artificial Inteligence Operating Margin % Related Terms
Substrate Artificial Inteligence Operating Margin % Historical Data
* 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:U8S vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Substrate Artificial Inteligence'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.
Substrate Artificial Inteligence Operating Margin % vs Software Industry
For the Software industry and Technology sector, Substrate Artificial Inteligence's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Substrate Artificial Inteligence'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.
* 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.
Substrate Artificial Inteligence (FRA:U8S) has a Operating Margin % of 8.03% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Substrate Artificial Inteligence and its competitors. According to the industry distribution chart, Substrate Artificial Inteligence ranks #831 out of 2818 companies in the Software industry, placing it in the top 29.5%.
Is Substrate Artificial Inteligence's Operating Margin % too high?
Substrate Artificial Inteligence's current Operating Margin % is 8.03%. The Software industry median Operating Margin % is 3.87. Substrate Artificial Inteligence's value of 8.03% is 107.8% above this industry median. Based on the distribution chart, Substrate Artificial Inteligence ranks #831 out of 2818 companies in the Software industry, which is above the industry midpoint.
How does Substrate Artificial Inteligence's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Substrate Artificial Inteligence ranks #831 out of 2818 companies for Operating Margin %. This puts Substrate Artificial Inteligence in the upper half of its industry. The industry median Operating Margin % is 3.87. Substrate Artificial Inteligence's value of 8.03% is 107.8% above 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 a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 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. Substrate Artificial Inteligence's current Operating Margin % of 8.03% is 107.8% 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 Substrate Artificial Inteligence 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. Substrate Artificial Inteligence's current Operating Margin % is 8.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Substrate Artificial Inteligence stock overvalued right now?
Based on GuruFocus' analysis, Substrate Artificial Inteligence (FRA:U8S) is currently considered Possible Value Trap. The stock's GF Value™ is €0.25, compared to a current price of €0.02 — trading 90.9% below its estimated fair value. The current Operating Margin % is 8.03% and 107.8% above the Software industry median of 3.87. 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 Substrate Artificial Inteligence (FRA:U8S), the current Operating Margin % is 8.03% as of Dec. 2025. 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.
Substrate Artificial Inteligence Business Description
Substrate Artificial Inteligence SA is an Artificial Intelligence company in Spain. Its software is applied in agritech, energy, industry, fintech, human resources, or health sectors. Its technology is easy to implement and allows it to address all the problems faced by companies in the digitization and streamlining of their processes, optimizing decision-making and generating great cost savings.
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