Eagle Eye Solutions Group (LSE:EYE) 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.
Eagle Eye Solutions Group Operating Margin % Related Terms
Eagle Eye Solutions Group Operating Margin % Historical Data
* 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.
Eagle Eye Solutions Group Operating Margin % Chart
LSE:EYE vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Eagle Eye Solutions 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.
Eagle Eye Solutions Group Operating Margin % vs Software Industry
For the Software industry and Technology sector, Eagle Eye Solutions Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eagle Eye Solutions Group's Operating Margin % falls into.
Eagle Eye Solutions Group Operating Margin % Calculation
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.
Eagle Eye Solutions Group's Operating Margin % for the fiscal year that ended in Jun. 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.
Eagle Eye Solutions Group (LSE:EYE) has a Operating Margin % of 18.64% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Eagle Eye Solutions Group and its competitors. According to the industry distribution chart, Eagle Eye Solutions Group ranks #1490 out of 2820 companies in the Software industry, placing it in the top 52.8%.
Is Eagle Eye Solutions Group's Operating Margin % too high?
Eagle Eye Solutions Group's current Operating Margin % is 18.64%. The Software industry median Operating Margin % is 3.87. Eagle Eye Solutions Group's value of 18.64% is 382.3% above this industry median. Based on the distribution chart, Eagle Eye Solutions Group ranks #1490 out of 2820 companies in the Software industry, which is below the industry midpoint. Overall, Eagle Eye Solutions Group has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Eagle Eye Solutions Group's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Eagle Eye Solutions Group ranks #1490 out of 2820 companies for Operating Margin %. This places Eagle Eye Solutions Group in the lower half of its industry. The industry median Operating Margin % is 3.87. Eagle Eye Solutions Group's value of 18.64% is 382.3% 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. Eagle Eye Solutions Group's current Operating Margin % of 18.64% is 382.3% 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 Eagle Eye Solutions 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. Eagle Eye Solutions Group's current Operating Margin % is 18.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eagle Eye Solutions Group stock overvalued right now?
Based on GuruFocus' analysis, Eagle Eye Solutions Group (LSE:EYE) is currently considered Fairly Valued. The stock's GF Value™ is £4.34, compared to a current price of £4.50 — trading 3.7% above its estimated fair value. The current Operating Margin % is 18.64% and 382.3% above the Software industry median of 3.87. Eagle Eye Solutions Group's overall GF Score™ is 79/100 with 8 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 Eagle Eye Solutions Group (LSE:EYE), the current Operating Margin % is 18.64% 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 Eagle Eye Solutions Group (LSE:EYE) Overvalued in 2026?
Based on GuruFocus' analysis, Eagle Eye Solutions Group stock appears to be overvalued.
The current stock price of £4.50 is trading 3.7% above its estimated GF Value™ of £4.34.
GuruFocus considers Eagle Eye Solutions Group to be Fairly Valued.
Key valuation signals for LSE:EYE:
Operating Margin %: 18.64%
GF Value™: £4.34 vs. price of £4.50 (3.7% above fair value)
Industry Position: 382.3% above the Software median (#1490 of 2820)
No single metric tells the full story. See the LSE:EYE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eagle Eye Solutions Group PLC is a software-as-a-service and artificial intelligence technology company. It provides digital platforms enabling retailers in the grocery, retail, travel, and hospitality sectors to engage customers through real-time marketing through the provision of its marketing technology software as a service solution. It has two operating divisions, namely, the Organic Eagle Eye business and the EagleAI business, with maximum revenue generated from the Organic division. It has operational footprints across the United Kingdom, France, the United States, Canada, Australia, North America, the Rest of Europe, and the Rest of Asia Pacific. The company generates the majority of its revenue from Subscription and transaction fees.
79GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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