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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.
Sensata Technologies Holding Operating Margin % Related Terms
Sensata Technologies Holding 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.
MEX:ST N vs NOVT, ESE, VNT: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Sensata Technologies Holding'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.
Sensata Technologies Holding Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Sensata Technologies Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sensata Technologies Holding'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.
* 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.
Sensata Technologies Holding (MEX:ST N) has a Operating Margin % of 16.53% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sensata Technologies Holding and its competitors. This is near median its historical median of 15.24. Over the past decade, Sensata Technologies Holding's Operating Margin % has ranged from 11.41 to 18.82. According to the industry distribution chart, Sensata Technologies Holding ranks #381 out of 2474 companies in the Hardware industry, placing it in the top 15.4%.
Is Sensata Technologies Holding's Operating Margin % too high?
Sensata Technologies Holding's current Operating Margin % of 16.53% is near median its 10-year median of 15.24. Over the past 10 years, this metric has ranged from a low of 11.41 to a high of 18.82. The Hardware industry median Operating Margin % is 4.00. Sensata Technologies Holding's value of 16.53% is 313.8% above this industry median. Based on the distribution chart, Sensata Technologies Holding ranks #381 out of 2474 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Sensata Technologies Holding has a GF Score™ of 77/100, reflecting its overall financial health beyond just this single metric.
How does Sensata Technologies Holding's Operating Margin % compare to NOVT and ESE?
According to the Hardware industry distribution chart, Sensata Technologies Holding ranks #381 out of 2474 companies for Operating Margin %. This places Sensata Technologies Holding in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.00. Sensata Technologies Holding's value of 16.53% is 313.8% above this benchmark. Historically, Sensata Technologies Holding's own Operating Margin % has ranged from 11.41 to 18.82 over the past decade. While the company's 10-year median is 15.24 vs. the industry median of 4.00, Sensata Technologies Holding 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 Hardware company?
The median Operating Margin % among Hardware companies is 4.00, based on 2,474 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. Sensata Technologies Holding's current Operating Margin % of 16.53% is 313.8% 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 Sensata Technologies Holding and its competitors. For the Hardware industry, the median Operating Margin % is 4.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sensata Technologies Holding's current Operating Margin % is 16.53%, which is near median its own 10-year median of 15.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sensata Technologies Holding stock overvalued right now?
Sensata Technologies Holding (MEX:ST N) has a current Operating Margin % of 16.53%. The stock's GF Value™ is MXN459.94, compared to a current price of MXN561.44 — trading 22.1% above its estimated fair value. The current Operating Margin % is 16.53%, which is near median its 10-year median of 15.24 and 313.8% above the Hardware industry median of 4.00. Sensata Technologies Holding's overall GF Score™ is 77/100 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 Sensata Technologies Holding (MEX:ST N), the current Operating Margin % is 16.53% as of Jun. 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 Sensata Technologies Holding (MEX:ST N) Overvalued in 2026?
Based on GuruFocus' analysis, Sensata Technologies Holding stock appears to be overvalued.
The current stock price of MXN561.44 is trading 22.1% above its estimated GF Value™ of MXN459.94.
Key valuation signals for MEX:ST N:
Operating Margin %: 16.53% (near median its 10-year median of 15.24)
GF Value™: MXN459.94 vs. price of MXN561.44 (22.1% above fair value)
Industry Position: 313.8% above the Hardware median (#381 of 2474)
No single metric tells the full story. See the MEX:ST N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sensata Technologies is a global supplier of sensors and electrical protection for transportation and industrial applications. Sensata sells a bevy of pressure, temperature, force, and position sensors into the automotive, heavy vehicle, industrial, heating, ventilation, and cooling, and aerospace markets. It also sells electrical protection products, like contactors and relays. The majority of the firm's revenue comes from the automotive market, where it focuses on bumper-in applications.
77GF Score
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