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Nexion TechnologiesHKSE:08420 Operating Margin % is 2.66% as of Jun. 2026. The stock has 2 warning signs investors should review. Among 2,814 Software companies, Nexion Technologies ranks worse than 70.36% 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.
Nexion Technologies Operating Margin % Related Terms
Nexion Technologies Operating Margin % Historical Data
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The historical data trend for Nexion 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.
HKSE:08420 vs MSFT, PLTR, ORCL: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Nexion 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.
Nexion Technologies Operating Margin % vs Software Industry
For the Software industry and Technology sector, Nexion Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nexion 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.
Nexion 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.
Nexion Technologies (HKSE:08420) has a Operating Margin % of 2.66% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nexion Technologies and its competitors. According to the industry distribution chart, Nexion Technologies ranks #1980 out of 2814 companies in the Software industry, placing it in the top 70.4%.
Is Nexion Technologies' Operating Margin % too high?
Nexion Technologies' current Operating Margin % is 2.66%. The Software industry median Operating Margin % is 3.88. Nexion Technologies' value of 2.66% is 31.4% below this industry median. Based on the distribution chart, Nexion Technologies ranks #1980 out of 2814 companies in the Software industry, which is below the industry midpoint.
How does Nexion Technologies' Operating Margin % compare to MSFT and PLTR?
According to the Software industry distribution chart, Nexion Technologies ranks #1980 out of 2814 companies for Operating Margin %. This places Nexion Technologies in the lower half of its industry. The industry median Operating Margin % is 3.88. Nexion Technologies' value of 2.66% is 31.4% 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 3.88, based on 2,814 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. Nexion Technologies's current Operating Margin % of 2.66% is 31.4% 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 Nexion Technologies and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nexion Technologies's current Operating Margin % is 2.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nexion Technologies stock overvalued right now?
Based on GuruFocus' analysis, Nexion Technologies (HKSE:08420) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.05, compared to a current price of HK$0.03 — trading 42% below its estimated fair value. The current Operating Margin % is 2.66% and 31.4% below the Software industry median of 3.88. 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 Nexion Technologies (HKSE:08420), the current Operating Margin % is 2.66% as of Jun. 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.
Nexion Technologies Ltd is an investment holding company. It is engaged in the provision of cyber infrastructure solutions services, the provision of cyber security solutions services, and software-as-a-service. The group has one operating segment, Cyber security solutions and IT software development. The group has a business presence in Singapore, Malaysia, the PRC, and other countries, of which key revenue is generated from Malaysia.
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