ISA HoldingsJSE:ISA +4.48%88 Operating Margin % is 29.77% as of Feb. 2026, which is 29% above its 10-year median of 23.07. GuruFocus rates JSE:ISA with a GF Score™ of 88/100 and a GF Value™ of R2.23 (Fairly Valued). The stock has 3 warning signs investors should review. Among 2,817 Software companies, ISA Holdings ranks better than 91.41% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. ISA Holdings's Operating Income for the
six
months ended in Feb. 2026 was R17.6 Mil. ISA Holdings's Revenue for the
six
months ended in Feb. 2026 was R59.1 Mil. Therefore, ISA Holdings's Operating Margin % for the quarter that ended in Feb. 2026 was 29.77%.
The historical rank and industry rank for ISA Holdings's Operating Margin % or its related term are showing as below:
JSE:ISA'
s Operating Margin % Range Over the Past 10 Years
Min: 18.43 Med: 23.07 Max: 27.17
Current: 24.16
JSE:ISA's Operating Margin % is ranked better than 91.41% of 2817
companies
in the Software industry
Industry Median: 3.81
vs JSE:ISA: 24.16
ISA Holdings's 5-Year Average Operating Margin % Growth Rate was -0.60% per year.
ISA Holdings's Operating Income for the
six
months ended in Feb. 2026 was R17.6 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Feb. 2026 was R30.9 Mil.
ISA Holdings (JSE:ISA) 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.
ISA Holdings Operating Margin % Related Terms
ISA Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for ISA Holdings'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.
JSE:ISA vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, ISA Holdings'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.
ISA Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, ISA Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ISA Holdings'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.
ISA Holdings's Operating Margin % for the fiscal year that ended in Feb. 2026 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.
ISA Holdings (JSE:ISA) has a Operating Margin % of 29.77% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ISA Holdings and its competitors. This is 29% above median its historical median of 23.07. Over the past decade, ISA Holdings' Operating Margin % has ranged from 18.43 to 27.17. According to the industry distribution chart, ISA Holdings ranks #242 out of 2817 companies in the Software industry, placing it in the top 8.6%.
Is ISA Holdings' Operating Margin % too high?
ISA Holdings' current Operating Margin % of 29.77% is 29% above median its 10-year median of 23.07. Over the past 10 years, this metric has ranged from a low of 18.43 to a high of 27.17. The Software industry median Operating Margin % is 3.81. ISA Holdings' value of 29.77% is 681.4% above this industry median. Based on the distribution chart, ISA Holdings ranks #242 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, ISA Holdings has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does ISA Holdings' Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, ISA Holdings ranks #242 out of 2817 companies for Operating Margin %. This places ISA Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. ISA Holdings' value of 29.77% is 681.4% above this benchmark. Historically, ISA Holdings' own Operating Margin % has ranged from 18.43 to 27.17 over the past decade. While the company's 10-year median is 23.07 vs. the industry median of 3.81, ISA Holdings 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 Software company?
The median Operating Margin % among Software companies is 3.81, based on 2,817 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. ISA Holdings's current Operating Margin % of 29.77% is 681.4% 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 ISA Holdings and its competitors. For the Software industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ISA Holdings's current Operating Margin % is 29.77%, which is 29% above median its own 10-year median of 23.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ISA Holdings stock overvalued right now?
Based on GuruFocus' analysis, ISA Holdings (JSE:ISA) is currently considered Fairly Valued. The stock's GF Value™ is R2.23, compared to a current price of R2.10 — trading 5.8% below its estimated fair value. The current Operating Margin % is 29.77%, which is 29% above median its 10-year median of 23.07 and 681.4% above the Software industry median of 3.81. ISA Holdings' overall GF Score™ is 88/100 with 3 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 ISA Holdings (JSE:ISA), the current Operating Margin % is 29.77% as of Feb. 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 ISA Holdings (JSE:ISA) Overvalued in 2026?
Based on GuruFocus' analysis, ISA Holdings stock appears to be undervalued.
The current stock price of R2.10 is trading 5.8% below its estimated GF Value™ of R2.23.
GuruFocus considers ISA Holdings to be Fairly Valued.
Key valuation signals for JSE:ISA:
Operating Margin %: 29.77% (29% above median its 10-year median of 23.07)
GF Value™: R2.23 vs. price of R2.10 (5.8% below fair value)
Industry Position: 681.4% above the Software median (#242 of 2817)
No single metric tells the full story. See the JSE:ISA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ISA Holdings Ltd is an investment holding company. The company, through its subsidiary, provides network, Internet, and information security solutions to the sub-Saharan African market. Its business is to discover, design, deliver, deploy, and manage its bespoke Information and Communication Technology (ICT) security infrastructure. Its technology offerings include firewalls, anti-virus, authentication, remote access, content security, intrusion protection, virtual private networking, vulnerability assessment, messaging and data protection, and identity and access management. The company generates a majority of its revenue from its business in South Africa.
88GF Score
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