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GigaCloud TechnologyMEX:GCTN 86 Operating Margin % is 11.82% as of Mar. 2026, which is 5% above its 10-year median of 11.25. GuruFocus rates MEX:GCTN with a GF Score™ of 86/100 and a GF Value™ of MXN541.86. The stock has 2 warning signs investors should review. Among 2,826 Software companies, GigaCloud Technology ranks better than 73.18% 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.
GigaCloud Technology Operating Margin % Related Terms
GigaCloud Technology Operating Margin % Historical Data
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The historical data trend for GigaCloud Technology'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.
MEX:GCTN vs BRUN, PGY, AI: Operating Margin % Comparison
For the Software - Infrastructure subindustry, GigaCloud Technology'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.
GigaCloud Technology Operating Margin % vs Software Industry
For the Software industry and Technology sector, GigaCloud Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where GigaCloud Technology'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.
GigaCloud Technology'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.
GigaCloud Technology (MEX:GCTN) has a Operating Margin % of 11.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on GigaCloud Technology and its competitors. This is near median its historical median of 11.25. Over the past decade, GigaCloud Technology's Operating Margin % has ranged from 3.93 to 16.10. According to the industry distribution chart, GigaCloud Technology ranks #758 out of 2826 companies in the Software industry, placing it in the top 26.8%.
Is GigaCloud Technology's Operating Margin % too high?
GigaCloud Technology's current Operating Margin % of 11.82% is near median its 10-year median of 11.25. Over the past 10 years, this metric has ranged from a low of 3.93 to a high of 16.10. The Software industry median Operating Margin % is 3.90. GigaCloud Technology's value of 11.82% is 203.1% above this industry median. Based on the distribution chart, GigaCloud Technology ranks #758 out of 2826 companies in the Software industry, which is above the industry midpoint. Overall, GigaCloud Technology has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does GigaCloud Technology's Operating Margin % compare to BRUN and PGY?
According to the Software industry distribution chart, GigaCloud Technology ranks #758 out of 2826 companies for Operating Margin %. This puts GigaCloud Technology in the upper half of its industry. The industry median Operating Margin % is 3.90. GigaCloud Technology's value of 11.82% is 203.1% above this benchmark. Historically, GigaCloud Technology's own Operating Margin % has ranged from 3.93 to 16.10 over the past decade. While the company's 10-year median is 11.25 vs. the industry median of 3.90, GigaCloud Technology 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 Software company?
The median Operating Margin % among Software companies is 3.90, based on 2,826 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. GigaCloud Technology's current Operating Margin % of 11.82% is 203.1% 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 GigaCloud Technology and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GigaCloud Technology's current Operating Margin % is 11.82%, which is near median its own 10-year median of 11.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GigaCloud Technology stock overvalued right now?
GigaCloud Technology (MEX:GCTN) has a current Operating Margin % of 11.82%. The stock's GF Value™ is MXN541.86, compared to a current price of MXN650.00 — trading 20% above its estimated fair value. The current Operating Margin % is 11.82%, which is near median its 10-year median of 11.25 and 203.1% above the Software industry median of 3.90. GigaCloud Technology's overall GF Score™ is 86/100 with 2 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 GigaCloud Technology (MEX:GCTN), the current Operating Margin % is 11.82% as of Mar. 2026. 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 GigaCloud Technology (MEX:GCTN) Overvalued in 2026?
Based on GuruFocus' analysis, GigaCloud Technology stock appears to be overvalued.
The current stock price of MXN650.00 is trading 20% above its estimated GF Value™ of MXN541.86.
Key valuation signals for MEX:GCTN:
Operating Margin %: 11.82% (near median its 10-year median of 11.25)
GF Value™: MXN541.86 vs. price of MXN650.00 (20% above fair value)
Industry Position: 203.1% above the Software median (#758 of 2826)
No single metric tells the full story. See the MEX:GCTN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GigaCloud Technology Inc provides end-to-end and B2B e-commerce solutions for large parcel merchandise. Its B2B e-commerce platform, which is referred to as the GigaCloud Marketplace, integrates everything from discovery, payments, and logistics tools into one easy-to-use platform. It offers online and offline integrated cross-border transaction and delivery services for furniture and large merchandise. Its marketplace seamlessly connects manufacturers in Asia with resellers in the U.S., Asia, and Europe to execute cross-border transactions with confidence, speed, and efficiency. It offers a truly comprehensive solution that transports products from the manufacturer's warehouse to end customers, all at one fixed price. It earns the majority of its revenue from the United States.
86GF Score
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