Fae Technology SpAMIL:FAE -0.26%75 Operating Margin % is 7.75% as of Dec. 2025, which is 11% below its 10-year median of 8.75. GuruFocus rates MIL:FAE with a GF Score™ of 75/100 and a GF Value™ of €2.96 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 2,471 Hardware companies, Fae Technology SpA ranks better than 60.62% 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.
Fae Technology SpA Operating Margin % Related Terms
Fae Technology SpA Operating Margin % Historical Data
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The historical data trend for Fae Technology SpA'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.
MIL:FAE vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Fae Technology SpA'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.
Fae Technology SpA Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Fae Technology SpA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fae Technology SpA'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.
Fae Technology SpA'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.
Fae Technology SpA (MIL:FAE) has a Operating Margin % of 7.75% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Fae Technology SpA and its competitors. This is 11% below median its historical median of 8.75. Over the past decade, Fae Technology SpA's Operating Margin % has ranged from 3.48 to 9.82. According to the industry distribution chart, Fae Technology SpA ranks #973 out of 2471 companies in the Hardware industry, placing it in the top 39.4%.
Is Fae Technology SpA's Operating Margin % too high?
Fae Technology SpA's current Operating Margin % of 7.75% is 11% below median its 10-year median of 8.75. Over the past 10 years, this metric has ranged from a low of 3.48 to a high of 9.82. The Hardware industry median Operating Margin % is 3.80. Fae Technology SpA's value of 7.75% is 103.9% above this industry median. Based on the distribution chart, Fae Technology SpA ranks #973 out of 2471 companies in the Hardware industry, which is above the industry midpoint. Overall, Fae Technology SpA has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fae Technology SpA's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Fae Technology SpA ranks #973 out of 2471 companies for Operating Margin %. This puts Fae Technology SpA in the upper half of its industry. The industry median Operating Margin % is 3.80. Fae Technology SpA's value of 7.75% is 103.9% above this benchmark. Historically, Fae Technology SpA's own Operating Margin % has ranged from 3.48 to 9.82 over the past decade. While the company's 10-year median is 8.75 vs. the industry median of 3.80, Fae Technology SpA 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 3.80, based on 2,471 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. Fae Technology SpA's current Operating Margin % of 7.75% is 103.9% 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 Fae Technology SpA and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fae Technology SpA's current Operating Margin % is 7.75%, which is 11% below median its own 10-year median of 8.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fae Technology SpA stock overvalued right now?
Based on GuruFocus' analysis, Fae Technology SpA (MIL:FAE) is currently considered Modestly Overvalued. The stock's GF Value™ is €2.96, compared to a current price of €3.78 — trading 27.7% above its estimated fair value. The current Operating Margin % is 7.75%, which is 11% below median its 10-year median of 8.75 and 103.9% above the Hardware industry median of 3.80. Fae Technology SpA's overall GF Score™ is 75/100 with 8 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 Fae Technology SpA (MIL:FAE), the current Operating Margin % is 7.75% 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 Fae Technology SpA (MIL:FAE) Overvalued in 2026?
Based on GuruFocus' analysis, Fae Technology SpA stock appears to be overvalued.
The current stock price of €3.78 is trading 27.7% above its estimated GF Value™ of €2.96.
GuruFocus considers Fae Technology SpA to be Modestly Overvalued.
Key valuation signals for MIL:FAE:
Operating Margin %: 7.75% (11% below median its 10-year median of 8.75)
GF Value™: €2.96 vs. price of €3.78 (27.7% above fair value)
Industry Position: 103.9% above the Hardware median (#973 of 2471)
No single metric tells the full story. See the MIL:FAE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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