HMS Networks ABHMNKF 96 Operating Margin % is 24.41% as of Mar. 2026, which is 25% above its 10-year median of 19.50. GuruFocus rates HMNKF with a GF Score™ of 96/100 and a GF Value™ of $53.16 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,472 Hardware companies, HMS Networks AB ranks better than 93.85% on this metric.
HMS Networks AB (OTCPK:HMNKF) 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.
HMS Networks AB Operating Margin % Related Terms
HMS Networks AB Operating Margin % Historical Data
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The historical data trend for HMS Networks 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.
HMNKF vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, HMS Networks 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.
HMS Networks AB Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, HMS Networks AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where HMS Networks 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.
HMS Networks 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.
HMS Networks AB (HMNKF) has a Operating Margin % of 24.41% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on HMS Networks AB and its competitors. This is 25% above median its historical median of 19.50. Over the past decade, HMS Networks AB's Operating Margin % has ranged from 15.68 to 25.84. According to the industry distribution chart, HMS Networks AB ranks #152 out of 2472 companies in the Hardware industry, placing it in the top 6.1%.
Is HMS Networks AB's Operating Margin % too high?
HMS Networks AB's current Operating Margin % of 24.41% is 25% above median its 10-year median of 19.50. Over the past 10 years, this metric has ranged from a low of 15.68 to a high of 25.84. The Hardware industry median Operating Margin % is 3.80. HMS Networks AB's value of 24.41% is 542.4% above this industry median. Based on the distribution chart, HMS Networks AB ranks #152 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, HMS Networks AB has a GF Score™ of 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does HMS Networks AB's Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, HMS Networks AB ranks #152 out of 2472 companies for Operating Margin %. This places HMS Networks AB in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. HMS Networks AB's value of 24.41% is 542.4% above this benchmark. Historically, HMS Networks AB's own Operating Margin % has ranged from 15.68 to 25.84 over the past decade. While the company's 10-year median is 19.50 vs. the industry median of 3.80, HMS Networks 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 a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 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. HMS Networks AB's current Operating Margin % of 24.41% is 542.4% 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 HMS Networks AB and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HMS Networks AB's current Operating Margin % is 24.41%, which is 25% above median its own 10-year median of 19.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HMS Networks AB stock overvalued right now?
Based on GuruFocus' analysis, HMS Networks AB (HMNKF) is currently considered Modestly Overvalued. The stock's GF Value™ is $53.16, compared to a current price of $59.75 — trading 12.4% above its estimated fair value. The current Operating Margin % is 24.41%, which is 25% above median its 10-year median of 19.50 and 542.4% above the Hardware industry median of 3.80. HMS Networks AB's overall GF Score™ is 96/100 with 2 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 HMS Networks AB (HMNKF), the current Operating Margin % is 24.41% 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 HMS Networks AB (HMNKF) Overvalued in 2026?
Based on GuruFocus' analysis, HMS Networks AB stock appears to be overvalued.
The current stock price of $59.75 is trading 12.4% above its estimated GF Value™ of $53.16.
GuruFocus considers HMS Networks AB to be Modestly Overvalued.
Key valuation signals for HMNKF:
Operating Margin %: 24.41% (25% above median its 10-year median of 19.50)
GF Value™: $53.16 vs. price of $59.75 (12.4% above fair value)
Industry Position: 542.4% above the Hardware median (#152 of 2472)
No single metric tells the full story. See the HMNKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HMS Networks AB supplies proprietary, patented technology for intelligent industrial communication. It develops and manufactures solutions for connecting industrial products to networks and gateways, thus enabling interconnection between various networks. The group sells products in various countries, including Germany. Its operating segments include Industrial Data Solutions, Industrial Network Technology, and New Industries. The brands of the company are Anybus, Red Lion, N-Tron, Ewon, Intesis, Ixxat, Owasys, and PEAK-System.
96GF Score
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