Somero EnterprisesLSE:SOM -1.04%67 Operating Margin % is 18.81% as of Dec. 2025, which is 35% below its 10-year median of 28.77. GuruFocus rates LSE:SOM with a GF Score™ of 67/100 and a GF Value™ of £2.02 (Fairly Valued). The stock has 5 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Somero Enterprises ranks better than 91.87% on this metric.
Somero Enterprises Inc operating margin has been in a 5-year decline. The average rate of decline per year is -11.1%.
The historical rank and industry rank for Somero Enterprises's Operating Margin % or its related term are showing as below:
LSE:SOM'
s Operating Margin % Range Over the Past 10 Years
Min: 15.69 Med: 28.77 Max: 33.86
Current: 15.71
LSE:SOM's Operating Margin % is ranked better than 91.87% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs LSE:SOM: 15.71
Somero Enterprises's 5-Year Average Operating Margin % Growth Rate was -11.10% per year.
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.
Somero Enterprises Operating Margin % Related Terms
Somero Enterprises Operating Margin % Historical Data
* Premium members only.
The historical data trend for Somero Enterprises'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:SOM vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Somero Enterprises'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.
Somero Enterprises Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Somero Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Somero Enterprises'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.
Somero Enterprises'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.
Somero Enterprises (LSE:SOM) has a Operating Margin % of 18.81% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Somero Enterprises and its competitors. This is 35% below median its historical median of 28.77. Over the past decade, Somero Enterprises' Operating Margin % has ranged from 15.69 to 33.86. According to the industry distribution chart, Somero Enterprises ranks #17 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 8.1%.
Is Somero Enterprises' Operating Margin % too high?
Somero Enterprises' current Operating Margin % of 18.81% is 35% below median its 10-year median of 28.77. Over the past 10 years, this metric has ranged from a low of 15.69 to a high of 33.86. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Somero Enterprises' value of 18.81% is 177.4% above this industry median. Based on the distribution chart, Somero Enterprises ranks #17 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Somero Enterprises has a GF Score™ of 67/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Somero Enterprises' Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Somero Enterprises ranks #17 out of 209 companies for Operating Margin %. This places Somero Enterprises in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.78. Somero Enterprises' value of 18.81% is 177.4% above this benchmark. Historically, Somero Enterprises' own Operating Margin % has ranged from 15.69 to 33.86 over the past decade. While the company's 10-year median is 28.77 vs. the industry median of 6.78, Somero Enterprises 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 Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 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. Somero Enterprises's current Operating Margin % of 18.81% is 177.4% 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 Somero Enterprises and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Somero Enterprises's current Operating Margin % is 18.81%, which is 35% below median its own 10-year median of 28.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Somero Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Somero Enterprises (LSE:SOM) is currently considered Fairly Valued. The stock's GF Value™ is £2.02, compared to a current price of £1.90 — trading 5.9% below its estimated fair value. The current Operating Margin % is 18.81%, which is 35% below median its 10-year median of 28.77 and 177.4% above the Farm & Heavy Construction Machinery industry median of 6.78. Somero Enterprises' overall GF Score™ is 67/100 with 5 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 Somero Enterprises (LSE:SOM), the current Operating Margin % is 18.81% 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 Somero Enterprises (LSE:SOM) Overvalued in 2026?
Based on GuruFocus' analysis, Somero Enterprises stock appears to be undervalued.
The current stock price of £1.90 is trading 5.9% below its estimated GF Value™ of £2.02.
GuruFocus considers Somero Enterprises to be Fairly Valued.
Key valuation signals for LSE:SOM:
Operating Margin %: 18.81% (35% below median its 10-year median of 28.77)
GF Value™: £2.02 vs. price of £1.90 (5.9% below fair value)
Industry Position: 177.4% above the Farm & Heavy Construction Machinery median (#17 of 209)
No single metric tells the full story. See the LSE:SOM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Somero Enterprises Inc designs, assembles, remanufactures, sells, and distributes concrete leveling, contouring, and placing equipment, related parts and accessories, and training services world'wide. Its products include Ride-on Laser Screeds, Lightweight Screeds, Boom Laser Screeds, Compact Boom Screeds, Stationary Laser Screeds, Software Packages, Factory Certified Remanufactured Equipment, Materials Placement. The Company operates as a single reportable segment. The group has presence in North America, Europe, Australia, ROW (includes Latin America, India, China, Middle East, Korea, and Southeast Asia). The company generates majority of revenue from North America.
67GF Score
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