RC365 HoldingLSE:RCGH +5.13% Operating Margin % is -35.21% as of Sep. 2025. The stock has 8 warning signs investors should review. Among 2,818 Software companies, RC365 Holding ranks worse than 78.14% on this metric.
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.
RC365 Holding Operating Margin % Related Terms
RC365 Holding Operating Margin % Historical Data
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The historical data trend for RC365 Holding'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:RCGH vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, RC365 Holding'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.
RC365 Holding Operating Margin % vs Software Industry
For the Software industry and Technology sector, RC365 Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where RC365 Holding'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.
RC365 Holding's Operating Margin % for the fiscal year that ended in Mar. 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.
RC365 Holding (LSE:RCGH) has a Operating Margin % of -35.21% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on RC365 Holding and its competitors. According to the industry distribution chart, RC365 Holding ranks #2202 out of 2818 companies in the Software industry, placing it in the top 78.1%.
Is RC365 Holding's Operating Margin % too high?
RC365 Holding's current Operating Margin % is -35.21%. Based on the distribution chart, RC365 Holding ranks #2202 out of 2818 companies in the Software industry, which is in the bottom quartile relative to peers.
How does RC365 Holding's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, RC365 Holding ranks #2202 out of 2818 companies for Operating Margin %. This places RC365 Holding in the lower half of its industry. The industry median Operating Margin % is 3.87. 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. 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 RC365 Holding 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. RC365 Holding's current Operating Margin % is -35.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is RC365 Holding stock overvalued right now?
Based on GuruFocus' analysis, RC365 Holding (LSE:RCGH) is currently considered Possible Value Trap. The stock's GF Value™ is £0.04, compared to a current price of £0.02 — trading 48.8% below its estimated fair value. The current Operating Margin % is -35.21%. 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 RC365 Holding (LSE:RCGH), the current Operating Margin % is -35.21% as of Sep. 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.
RC365 Holding PLC focuses on providing IT Support and Security Services, Payment Gateway Solutions (both online and offline), Prepaid Card Issuance and Support Services, as well as Computer Graphic Design and Animation services to clients located in the ASEAN region, the UK, and Europe.
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