Dillistone GroupLSE:DSG 40 Operating Margin % is 4.34% as of Dec. 2025. GuruFocus rates LSE:DSG with a GF Score™ of 40/100 and a GF Value™ of £0.08 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,820 Software companies, Dillistone Group ranks worse than 53.9% on this metric.
Dillistone Group (LSE:DSG) 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.
Dillistone Group Operating Margin % Related Terms
Dillistone Group Operating Margin % Historical Data
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The historical data trend for Dillistone 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.
LSE:DSG vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Dillistone 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.
Dillistone Group Operating Margin % vs Software Industry
For the Software industry and Technology sector, Dillistone Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dillistone 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.
Dillistone Group'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.
Dillistone Group (LSE:DSG) has a Operating Margin % of 4.34% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Dillistone Group and its competitors. According to the industry distribution chart, Dillistone Group ranks #1520 out of 2820 companies in the Software industry, placing it in the top 53.9%.
Is Dillistone Group's Operating Margin % too high?
Dillistone Group's current Operating Margin % is 4.34%. The Software industry median Operating Margin % is 3.87. Dillistone Group's value of 4.34% is 12.3% above this industry median. Based on the distribution chart, Dillistone Group ranks #1520 out of 2820 companies in the Software industry, which is below the industry midpoint. Overall, Dillistone Group has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dillistone Group's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Dillistone Group ranks #1520 out of 2820 companies for Operating Margin %. This places Dillistone Group in the lower half of its industry. The industry median Operating Margin % is 3.87. Dillistone Group's value of 4.34% is 12.3% above 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 2,820 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. Dillistone Group's current Operating Margin % of 4.34% is 12.3% 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 Dillistone 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. Dillistone Group's current Operating Margin % is 4.34%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dillistone Group stock overvalued right now?
Based on GuruFocus' analysis, Dillistone Group (LSE:DSG) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.08, compared to a current price of £0.11 — trading 31.3% above its estimated fair value. The current Operating Margin % is 4.34% and 12.3% above the Software industry median of 3.87. Dillistone Group's overall GF Score™ is 40/100 with 4 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 Dillistone Group (LSE:DSG), the current Operating Margin % is 4.34% as of Dec. 2025. 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 Dillistone Group (LSE:DSG) Overvalued in 2026?
Based on GuruFocus' analysis, Dillistone Group stock appears to be overvalued.
The current stock price of £0.11 is trading 31.3% above its estimated GF Value™ of £0.08.
GuruFocus considers Dillistone Group to be Significantly Overvalued.
Key valuation signals for LSE:DSG:
Operating Margin %: 4.34%
GF Value™: £0.08 vs. price of £0.11 (31.3% above fair value)
Industry Position: 12.3% above the Software median (#1520 of 2820)
No single metric tells the full story. See the LSE:DSG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dillistone Group PLC is engaged in the development and distribution of recruitment software solutions and associated consultancy and support. The Group provides software and services that enable recruitment firms and in-house recruiters to manage their selection process and address training needs. It includes Voyager Software, supplier of Infinity recruitment software and the Mid-Office Pay & Bill solution, Dillistone FileFinder, supplier of executive search software, ISV.online, which provides online pre-employment skills testing and training tools, and GatedTalent. Its brands include Talentis Global, Voyager, FileFinder, ISV.online and GatedTalent. The Group generates maximum revenue from the UK.
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