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.
SunCorp Technologies Operating Margin % Related Terms
SunCorp Technologies Operating Margin % Historical Data
* Premium members only.
The historical data trend for SunCorp Technologies'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:XSH4 vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, SunCorp Technologies'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.
SunCorp Technologies Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, SunCorp Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SunCorp Technologies'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.
SunCorp Technologies'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.
SunCorp Technologies (FRA:XSH4) has a Operating Margin % of -110.05% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on SunCorp Technologies and its competitors. According to the industry distribution chart, SunCorp Technologies ranks #517 out of 545 companies in the Conglomerates industry, placing it in the top 94.9%.
Is SunCorp Technologies' Operating Margin % too high?
SunCorp Technologies' current Operating Margin % is -110.05%. Based on the distribution chart, SunCorp Technologies ranks #517 out of 545 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, SunCorp Technologies has a GF Score™ of 25/100, reflecting its overall financial health beyond just this single metric.
How does SunCorp Technologies' Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, SunCorp Technologies ranks #517 out of 545 companies for Operating Margin %. This places SunCorp Technologies in the lower half of its industry. The industry median Operating Margin % is 5.93. 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 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. 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 SunCorp Technologies and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SunCorp Technologies's current Operating Margin % is -110.05%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SunCorp Technologies stock overvalued right now?
SunCorp Technologies (FRA:XSH4) has a current Operating Margin % of -110.05%. The stock's GF Value™ is €0.01, compared to a current price of €0.01 — trading 40% below its estimated fair value. The current Operating Margin % is -110.05%. SunCorp Technologies' overall GF Score™ is 25/100 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 SunCorp Technologies (FRA:XSH4), the current Operating Margin % is -110.05% 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.
Is SunCorp Technologies (FRA:XSH4) Overvalued in 2026?
Based on GuruFocus' analysis, SunCorp Technologies stock appears to be undervalued.
The current stock price of €0.01 is trading 40% below its estimated GF Value™ of €0.01.
Key valuation signals for FRA:XSH4:
Operating Margin %: -110.05%
GF Value™: €0.01 vs. price of €0.01 (40% below fair value)
No single metric tells the full story. See the FRA:XSH4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SunCorp Technologies Ltd is engaged in sales and marketing of residential telephone and related products, computer-related components, securities brokerage, placing and underwriting, money lending, and B2B cross-border e-commerce. Its operating segments are: Processing and trading of used computer-related components, which generates maximum revenue; Money lending services; and Provision of securities brokerage, placing and underwriting services. Geographically it operates in PRC (including Hong Kong); Indonesia; Singapore; USA; United Arab Emirates (EAB); Sri Lanka; and Others, with the majority of the revenue deriving from the PRC (including Hong Kong).
25GF 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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