Intershop Communications AG (HAM:ISHA) 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.
Intershop Communications AG Operating Margin % Related Terms
Intershop Communications AG 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.
Intershop Communications AG Operating Margin % Chart
HAM:ISHA vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Intershop Communications AG'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.
Intershop Communications AG Operating Margin % vs Software Industry
For the Software industry and Technology sector, Intershop Communications AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Intershop Communications AG's Operating Margin % falls into.
Intershop Communications AG Operating Margin % Calculation
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.
Intershop Communications AG'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.
Intershop Communications AG (HAM:ISHA) has a Operating Margin % of 1.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Intershop Communications AG and its competitors. According to the industry distribution chart, Intershop Communications AG ranks #1994 out of 2818 companies in the Software industry, placing it in the top 70.8%.
Is Intershop Communications AG's Operating Margin % too high?
Intershop Communications AG's current Operating Margin % is 1.27%. The Software industry median Operating Margin % is 3.87. Intershop Communications AG's value of 1.27% is 67.1% below this industry median. Based on the distribution chart, Intershop Communications AG ranks #1994 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Intershop Communications AG has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Intershop Communications AG's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Intershop Communications AG ranks #1994 out of 2818 companies for Operating Margin %. This places Intershop Communications AG in the lower half of its industry. The industry median Operating Margin % is 3.87. Intershop Communications AG's value of 1.27% is 67.1% 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 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. Intershop Communications AG's current Operating Margin % of 1.27% is 67.1% 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 Intershop Communications AG 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. Intershop Communications AG's current Operating Margin % is 1.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Intershop Communications AG stock overvalued right now?
Based on GuruFocus' analysis, Intershop Communications AG (HAM:ISHA) is currently considered Significantly Overvalued. The stock's GF Value™ is €1.04, compared to a current price of €1.43 — trading 37% above its estimated fair value. The current Operating Margin % is 1.27% and 67.1% below the Software industry median of 3.87. Intershop Communications AG's overall GF Score™ is 52/100 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 Intershop Communications AG (HAM:ISHA), the current Operating Margin % is 1.27% 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 Intershop Communications AG (HAM:ISHA) Overvalued in 2026?
Based on GuruFocus' analysis, Intershop Communications AG stock appears to be overvalued.
The current stock price of €1.43 is trading 37% above its estimated GF Value™ of €1.04.
GuruFocus considers Intershop Communications AG to be Significantly Overvalued.
Key valuation signals for HAM:ISHA:
Operating Margin %: 1.27%
GF Value™: €1.04 vs. price of €1.43 (37% above fair value)
Industry Position: 67.1% below the Software median (#1994 of 2818)
No single metric tells the full story. See the HAM:ISHA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Intershop Communications AG is an independent supplier of high-performance cloud e-commerce software. The company's Agentic B2B Commerce platform caters to manufacturing, wholesale, and network organization sectors. Intershop's solutions help its clients with digitizing and automating their sales and service processes, optimizing their online presence, creating a consistently positive customer experience, sustainably increasing online revenues, and reducing the costs of the e-commerce unit through AI-supported automation. The company's business activities are divided into two main business segments: Software and Cloud, which generate maximum revenue, and Service. Its geographical operating segments are: Europe, which derives maximum revenue, the USA, and the Asia-Pacific.
52GF Score
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