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The historical rank and industry rank for Luna Innovations's Operating Margin % or its related term are showing as below:
LUNA's Operating Margin % is not ranked *
in the Hardware industry.
Industry Median: 3.88 * Ranked among companies with meaningful Operating Margin % only.
Luna Innovations's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Luna Innovations (OTCPK:LUNA) 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.
Luna Innovations Operating Margin % Related Terms
Luna Innovations Operating Margin % Historical Data
* Premium members only.
The historical data trend for Luna Innovations'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.
LUNA vs ODYS, WRAP, SOTK: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Luna Innovations'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.
Luna Innovations Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Luna Innovations's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Luna Innovations'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.
Luna Innovations's Operating Margin % for the fiscal year that ended in Dec. 2022 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.
Luna Innovations (LUNA) has a Operating Margin % of 3.75% as of Sep. 2023. Operating margin is the ratio of total operating income to net sales. View historical data on Luna Innovations and its competitors.
Is Luna Innovations' Operating Margin % too high?
Luna Innovations' current Operating Margin % is 3.75%. The Hardware industry median Operating Margin % is 3.88. Luna Innovations' value of 3.75% is 3.4% below this industry median. Overall, Luna Innovations has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Luna Innovations' Operating Margin % compare to ODYS and WRAP?
Luna Innovations' Operating Margin % of 3.75% can be compared against companies in the Hardware industry. The industry median Operating Margin % is 3.88. Luna Innovations' value of 3.75% is 3.4% below 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.88, based on 2,477 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. Luna Innovations's current Operating Margin % of 3.75% is 3.4% below 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 Luna Innovations and its competitors. For the Hardware industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luna Innovations's current Operating Margin % is 3.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luna Innovations stock overvalued right now?
Luna Innovations (LUNA) has a current Operating Margin % of 3.75%. The current Operating Margin % is 3.75% and 3.4% below the Hardware industry median of 3.88. Luna Innovations' overall GF Score™ is 16/100. 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 Luna Innovations (LUNA), the current Operating Margin % is 3.75% as of Sep. 2023. 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.
Luna Innovations Inc is engaged in optical technology, providing high-performance fiber optic test, measurement, and control products for the telecommunications, and photonics industries, and distributed fiber optic sensing solutions that measure and monitor materials and structures for applications in aerospace, automotive, oil, and gas, security, and infrastructure. Its Lightwave segment develops, manufactures, and markets optical measurements technologies like Sensing including short, medium, and long-range distributed fiber optic sensing solutions and Terahertz measurement products, and Communications test and photonic control including test equipment for communications devices and networks and specialty laser and photonic components. It derives a majority of its revenue from the U.S.
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