Kainos GroupKNNNF 90 Operating Margin % is 12.23% as of Mar. 2026, which is 15% below its 10-year median of 14.36. GuruFocus rates KNNNF with a GF Score™ of 90/100 and a GF Value™ of $14.89. The stock has 2 warning signs investors should review. Among 2,818 Software companies, Kainos Group ranks better than 76.15% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Kainos Group's Operating Income for the
six
months ended in Mar. 2026 was $38.3 Mil. Kainos Group's Revenue for the
six
months ended in Mar. 2026 was $313.3 Mil. Therefore, Kainos Group's Operating Margin % for the quarter that ended in Mar. 2026 was 12.23%.
Warning Sign:
Kainos Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -7.9%.
The historical rank and industry rank for Kainos Group's Operating Margin % or its related term are showing as below:
KNNNF'
s Operating Margin % Range Over the Past 10 Years
Min: 12.67 Med: 14.36 Max: 21.33
Current: 12.67
KNNNF's Operating Margin % is ranked better than 76.15% of 2818
companies
in the Software industry
Industry Median: 3.865
vs KNNNF: 12.67
Kainos Group's 5-Year Average Operating Margin % Growth Rate was -7.90% per year.
Kainos Group's Operating Income for the
six
months ended in Mar. 2026 was $38.3 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $73.3 Mil.
Kainos Group (OTCPK:KNNNF) 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.
Kainos Group Operating Margin % Related Terms
Kainos Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Kainos Group'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.
KNNNF vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Kainos Group'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.
Kainos Group Operating Margin % vs Software Industry
For the Software industry and Technology sector, Kainos Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kainos Group'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.
Kainos Group's Operating Margin % for the fiscal year that ended in Mar. 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.
Kainos Group (KNNNF) has a Operating Margin % of 12.23% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kainos Group and its competitors. This is 15% below median its historical median of 14.36. Over the past decade, Kainos Group's Operating Margin % has ranged from 12.67 to 21.33. According to the industry distribution chart, Kainos Group ranks #672 out of 2818 companies in the Software industry, placing it in the top 23.8%.
Is Kainos Group's Operating Margin % too high?
Kainos Group's current Operating Margin % of 12.23% is 15% below median its 10-year median of 14.36. Over the past 10 years, this metric has ranged from a low of 12.67 to a high of 21.33. The Software industry median Operating Margin % is 3.87. Kainos Group's value of 12.23% is 216.4% above this industry median. Based on the distribution chart, Kainos Group ranks #672 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Kainos Group has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Kainos Group's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Kainos Group ranks #672 out of 2818 companies for Operating Margin %. This places Kainos Group in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Kainos Group's value of 12.23% is 216.4% above this benchmark. Historically, Kainos Group's own Operating Margin % has ranged from 12.67 to 21.33 over the past decade. While the company's 10-year median is 14.36 vs. the industry median of 3.87, Kainos Group 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 3.87, 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. Kainos Group's current Operating Margin % of 12.23% is 216.4% 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 Kainos Group 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. Kainos Group's current Operating Margin % is 12.23%, which is 15% below median its own 10-year median of 14.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kainos Group stock overvalued right now?
Kainos Group (KNNNF) has a current Operating Margin % of 12.23%. The stock's GF Value™ is $14.89, compared to a current price of $10.06 — trading 32.4% below its estimated fair value. The current Operating Margin % is 12.23%, which is 15% below median its 10-year median of 14.36 and 216.4% above the Software industry median of 3.87. Kainos Group's overall GF Score™ is 90/100 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 Kainos Group (KNNNF), the current Operating Margin % is 12.23% 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 Kainos Group (KNNNF) Overvalued in 2026?
Based on GuruFocus' analysis, Kainos Group stock appears to be undervalued.
The current stock price of $10.06 is trading 32.4% below its estimated GF Value™ of $14.89.
Key valuation signals for KNNNF:
Operating Margin %: 12.23% (15% below median its 10-year median of 14.36)
GF Value™: $14.89 vs. price of $10.06 (32.4% below fair value)
Industry Position: 216.4% above the Software median (#672 of 2818)
No single metric tells the full story. See the KNNNF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kainos Group PLC provides information technology services, consulting, and software solutions. It is structured into three divisions namely Digital Services, Workday Services, and Workday Products. Digital Services which derives key revenue, includes full life cycle development and support of digital solutions for government and commercial customers. The Workday Services division specializes in deploying and supporting Workday's Finance, HR, and Planning products. The Workday Products division develops products that complement Workday such as the smart product suite, including Smart Test, Smart Audit, and Smart Shield. Geographically, the company's maximum revenue is generated from the United Kingdom and Ireland and the rest from North America, Central Europe, and the Rest of the world.
90GF Score
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