Synnex Technology International (LUX:SYNEX) 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.
Synnex Technology International Operating Margin % Related Terms
Synnex Technology International 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.
Synnex Technology International Operating Margin % Chart
LUX:SYNEX vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, Synnex Technology International'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.
Synnex Technology International Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Synnex Technology International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Synnex Technology International's Operating Margin % falls into.
Synnex Technology International 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.
* 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.
Synnex Technology International (LUX:SYNEX) has a Operating Margin % of 2.78% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Synnex Technology International and its competitors. This is 25% above median its historical median of 2.22. Over the past decade, Synnex Technology International's Operating Margin % has ranged from 1.25 to 2.46. According to the industry distribution chart, Synnex Technology International ranks #1422 out of 2472 companies in the Hardware industry, placing it in the top 57.5%.
Is Synnex Technology International's Operating Margin % too high?
Synnex Technology International's current Operating Margin % of 2.78% is 25% above median its 10-year median of 2.22. Over the past 10 years, this metric has ranged from a low of 1.25 to a high of 2.46. The Hardware industry median Operating Margin % is 3.81. Synnex Technology International's value of 2.78% is 27% below this industry median. Based on the distribution chart, Synnex Technology International ranks #1422 out of 2472 companies in the Hardware industry, which is below the industry midpoint. Overall, Synnex Technology International has a GF Score™ of 76/100, reflecting its overall financial health beyond just this single metric.
How does Synnex Technology International's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Synnex Technology International ranks #1422 out of 2472 companies for Operating Margin %. This places Synnex Technology International in the lower half of its industry. The industry median Operating Margin % is 3.81. Synnex Technology International's value of 2.78% is 27% below this benchmark. Historically, Synnex Technology International's own Operating Margin % has ranged from 1.25 to 2.46 over the past decade. While the company's 10-year median is 2.22 vs. the industry median of 3.81, Synnex Technology International has consistently been below 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. Synnex Technology International's current Operating Margin % of 2.78% is 27% 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 Synnex Technology International and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synnex Technology International's current Operating Margin % is 2.78%, which is 25% above median its own 10-year median of 2.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Synnex Technology International stock overvalued right now?
Synnex Technology International (LUX:SYNEX) has a current Operating Margin % of 2.78%. The stock's GF Value™ is $8.36, compared to a current price of $9.05 — trading 8.3% above its estimated fair value. The current Operating Margin % is 2.78%, which is 25% above median its 10-year median of 2.22 and 27% below the Hardware industry median of 3.81. Synnex Technology International's overall GF Score™ is 76/100 with 6 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 Synnex Technology International (LUX:SYNEX), the current Operating Margin % is 2.78% 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 Synnex Technology International (LUX:SYNEX) Overvalued in 2026?
Based on GuruFocus' analysis, Synnex Technology International stock appears to be overvalued.
The current stock price of $9.05 is trading 8.3% above its estimated GF Value™ of $8.36.
Key valuation signals for LUX:SYNEX:
Operating Margin %: 2.78% (25% above median its 10-year median of 2.22)
GF Value™: $8.36 vs. price of $9.05 (8.3% above fair value)
Industry Position: 27% below the Hardware median (#1422 of 2472)
No single metric tells the full story. See the LUX:SYNEX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Synnex Technology International Business Description
Synnex Technology International Corp is a Taiwan-based company engaged in the sale of computers and related parts, communication products, consumer electronic products, electronic components, and semiconductor products. The majority of the company's revenue is generated from the distribution industry and is mainly engaged in the sale of 3C and semiconductor products. The company operates in Taiwan, Hong Kong, China, Australia, New Zealand, and Indonesia, of which China and Hong Kong are the key sources of revenue.
76GF Score
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