Signify NVMEX:LIGHT N 70 Operating Margin % is 1.33% as of Mar. 2026, which is 79% below its 10-year median of 6.20. GuruFocus rates MEX:LIGHT N with a GF Score™ of 70/100 and a GF Value™ of MXN423.74. The stock has 7 warning signs investors should review. Among 3,038 Industrial Products companies, Signify NV ranks worse than 54.21% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Signify NV's Operating Income for the
three
months ended in Mar. 2026 was MXN354 Mil. Signify NV's Revenue for the
three
months ended in Mar. 2026 was MXN26,559 Mil. Therefore, Signify NV's Operating Margin % for the quarter that ended in Mar. 2026 was 1.33%.
Warning Sign:
Signify NV operating margin has been in a 5-year decline. The average rate of decline per year is -2.2%.
The historical rank and industry rank for Signify NV's Operating Margin % or its related term are showing as below:
MEX:LIGHT N'
s Operating Margin % Range Over the Past 10 Years
Min: 4.51 Med: 6.2 Max: 9.57
Current: 5.65
MEX:LIGHT N's Operating Margin % is ranked worse than 54.21% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs MEX:LIGHT N: 5.65
Signify NV's 5-Year Average Operating Margin % Growth Rate was -2.20% per year.
Signify NV's Operating Income for the
three
months ended in Mar. 2026 was MXN354 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN6,764 Mil.
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.
Signify NV Operating Margin % Related Terms
Signify NV Operating Margin % Historical Data
* Premium members only.
The historical data trend for Signify NV'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:LIGHT N vs VRT, BE, NVT: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Signify NV'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.
Signify NV Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Signify NV's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Signify NV'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.
Signify NV'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.
Signify NV (MEX:LIGHT N) has a Operating Margin % of 1.33% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Signify NV and its competitors. This is 79% below median its historical median of 6.20. Over the past decade, Signify NV's Operating Margin % has ranged from 4.51 to 9.57. According to the industry distribution chart, Signify NV ranks #1647 out of 3038 companies in the Industrial Products industry, placing it in the top 54.2%.
Is Signify NV's Operating Margin % too high?
Signify NV's current Operating Margin % of 1.33% is 79% below median its 10-year median of 6.20. Over the past 10 years, this metric has ranged from a low of 4.51 to a high of 9.57. The Industrial Products industry median Operating Margin % is 6.53. Signify NV's value of 1.33% is 79.6% below this industry median. Based on the distribution chart, Signify NV ranks #1647 out of 3038 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Signify NV has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Signify NV's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Signify NV ranks #1647 out of 3038 companies for Operating Margin %. This places Signify NV in the lower half of its industry. The industry median Operating Margin % is 6.53. Signify NV's value of 1.33% is 79.6% below this benchmark. Historically, Signify NV's own Operating Margin % has ranged from 4.51 to 9.57 over the past decade. While the company's 10-year median is 6.20 vs. the industry median of 6.53, Signify NV 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Signify NV's current Operating Margin % of 1.33% is 79.6% 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 Signify NV and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Signify NV's current Operating Margin % is 1.33%, which is 79% below median its own 10-year median of 6.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Signify NV stock overvalued right now?
Signify NV (MEX:LIGHT N) has a current Operating Margin % of 1.33%. The stock's GF Value™ is MXN423.74, compared to a current price of MXN432.48 — trading 2.1% above its estimated fair value. The current Operating Margin % is 1.33%, which is 79% below median its 10-year median of 6.20 and 79.6% below the Industrial Products industry median of 6.53. Signify NV's overall GF Score™ is 70/100 with 7 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 Signify NV (MEX:LIGHT N), the current Operating Margin % is 1.33% 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 Signify NV (MEX:LIGHT N) Overvalued in 2026?
Based on GuruFocus' analysis, Signify NV stock appears to be overvalued.
The current stock price of MXN432.48 is trading 2.1% above its estimated GF Value™ of MXN423.74.
Key valuation signals for MEX:LIGHT N:
Operating Margin %: 1.33% (79% below median its 10-year median of 6.20)
GF Value™: MXN423.74 vs. price of MXN432.48 (2.1% above fair value)
Industry Position: 79.6% below the Industrial Products median (#1647 of 3038)
No single metric tells the full story. See the MEX:LIGHT N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Signify NV is a lighting solutions provider based in the Netherlands. Its product portfolio includes luminaires, lamps, LED lamps, LED tubes, and decorative lighting. The company operates through four segments, The Professional business offers LED lamps, luminaries, connected lighting systems and services to customers in the professional segment; The Consumer business offers LED lamps, luminaries, and connected products, including Philips Hue and WiZ, to customers in the consumer segment; The OEM business offers lighting components to the industry; The Conventional business offers special lighting, digital projection, and lamp electronic. The company operates in the USA, the Netherlands, France, the UK, Germany, Norway, and the rest of Europe and the rest of the world.
70GF Score
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