Reti SpAMIL:RETI -1.17%59 Operating Margin % is 7.75% as of Dec. 2025, which is 19% below its 10-year median of 9.60. GuruFocus rates MIL:RETI with a GF Score™ of 59/100 and a GF Value™ of €2.23 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,818 Software companies, Reti SpA ranks better than 66.15% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Reti SpA's Operating Income for the
six
months ended in Dec. 2025 was €1.46 Mil. Reti SpA's Revenue for the
six
months ended in Dec. 2025 was €18.87 Mil. Therefore, Reti SpA's Operating Margin % for the quarter that ended in Dec. 2025 was 7.75%.
Warning Sign:
Reti SpA operating margin has been in a 5-year decline. The average rate of decline per year is -1.9%.
The historical rank and industry rank for Reti SpA's Operating Margin % or its related term are showing as below:
MIL:RETI'
s Operating Margin % Range Over the Past 10 Years
Min: 6.3 Med: 9.6 Max: 10.33
Current: 8.69
MIL:RETI's Operating Margin % is ranked better than 66.15% of 2818
companies
in the Software industry
Industry Median: 3.875
vs MIL:RETI: 8.69
Reti SpA's 5-Year Average Operating Margin % Growth Rate was -1.90% per year.
Reti SpA's Operating Income for the
six
months ended in Dec. 2025 was €1.46 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was €3.11 Mil.
Reti SpA (MIL:RETI) 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.
Reti SpA Operating Margin % Related Terms
Reti SpA Operating Margin % Historical Data
* Premium members only.
The historical data trend for Reti 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:RETI vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Reti 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.
Reti SpA Operating Margin % vs Software Industry
For the Software industry and Technology sector, Reti SpA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Reti 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.
Reti 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.
Reti SpA (MIL:RETI) 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 Reti SpA and its competitors. This is 19% below median its historical median of 9.60. Over the past decade, Reti SpA's Operating Margin % has ranged from 6.30 to 10.33. According to the industry distribution chart, Reti SpA ranks #954 out of 2818 companies in the Software industry, placing it in the top 33.9%.
Is Reti SpA's Operating Margin % too high?
Reti SpA's current Operating Margin % of 7.75% is 19% below median its 10-year median of 9.60. Over the past 10 years, this metric has ranged from a low of 6.30 to a high of 10.33. The Software industry median Operating Margin % is 3.88. Reti SpA's value of 7.75% is 100% above this industry median. Based on the distribution chart, Reti SpA ranks #954 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Reti SpA has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reti SpA's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Reti SpA ranks #954 out of 2818 companies for Operating Margin %. This puts Reti SpA in the upper half of its industry. The industry median Operating Margin % is 3.88. Reti SpA's value of 7.75% is 100% above this benchmark. Historically, Reti SpA's own Operating Margin % has ranged from 6.30 to 10.33 over the past decade. While the company's 10-year median is 9.60 vs. the industry median of 3.88, Reti 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 Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 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. Reti SpA's current Operating Margin % of 7.75% is 100% 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 Reti SpA and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reti SpA's current Operating Margin % is 7.75%, which is 19% below median its own 10-year median of 9.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reti SpA stock overvalued right now?
Based on GuruFocus' analysis, Reti SpA (MIL:RETI) is currently considered Modestly Undervalued. The stock's GF Value™ is €2.23, compared to a current price of €1.69 — trading 24.2% below its estimated fair value. The current Operating Margin % is 7.75%, which is 19% below median its 10-year median of 9.60 and 100% above the Software industry median of 3.88. Reti SpA's overall GF Score™ is 59/100 with 5 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 Reti SpA (MIL:RETI), 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 Reti SpA (MIL:RETI) Overvalued in 2026?
Based on GuruFocus' analysis, Reti SpA stock appears to be undervalued.
The current stock price of €1.69 is trading 24.2% below its estimated GF Value™ of €2.23.
GuruFocus considers Reti SpA to be Modestly Undervalued.
Key valuation signals for MIL:RETI:
Operating Margin %: 7.75% (19% below median its 10-year median of 9.60)
GF Value™: €2.23 vs. price of €1.69 (24.2% below fair value)
Industry Position: 100% above the Software median (#954 of 2818)
No single metric tells the full story. See the MIL:RETI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reti SpA operates in the IT consulting field, specializing in System Integration services. It supports mid and large corporates in digital transformation by offering IT solutions, business consulting, and managed service provider services. The various services provided by the company include; the integration of AI into existing business processes, designing and implementing solutions for business data analysis, executing cloud migration and development projects, management and maintenance of IT infrastructures and applications, providing consultancy in project management and business analyst fields, and others. Geographically, the company generates all of its revenue from its business in Italy.
59GF Score
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