California Software CoNSE:CALSOFT -0.67%86 Operating Margin % is 88.35% as of Mar. 2026, which is 199% above its 10-year median of 29.55. GuruFocus rates NSE:CALSOFT with a GF Score™ of 86/100 and a GF Value™ of ₹28.31 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,820 Software companies, California Software Co ranks better than 99.57% on this metric.
California Software Co (NSE:CALSOFT) 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.
California Software Co Operating Margin % Related Terms
California Software Co Operating Margin % Historical Data
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The historical data trend for California Software Co'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.
NSE:CALSOFT vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, California Software Co'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.
California Software Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, California Software Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where California Software Co's Operating Margin % falls into.
California Software Co Operating Margin % Calculation
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.
California Software Co's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
California Software Co (NSE:CALSOFT) has a Operating Margin % of 88.35% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on California Software Co and its competitors. This is 199% above median its historical median of 29.55. Over the past decade, California Software Co's Operating Margin % has ranged from 10.81 to 72.87. According to the industry distribution chart, California Software Co ranks #12 out of 2820 companies in the Software industry, placing it in the top 0.40000000000001%.
Is California Software Co's Operating Margin % too high?
California Software Co's current Operating Margin % of 88.35% is 199% above median its 10-year median of 29.55. Over the past 10 years, this metric has ranged from a low of 10.81 to a high of 72.87. The Software industry median Operating Margin % is 3.87. California Software Co's value of 88.35% is 2185.9% above this industry median. Based on the distribution chart, California Software Co ranks #12 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, California Software Co has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does California Software Co's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, California Software Co ranks #12 out of 2820 companies for Operating Margin %. This places California Software Co in the top 0% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. California Software Co's value of 88.35% is 2185.9% above this benchmark. Historically, California Software Co's own Operating Margin % has ranged from 10.81 to 72.87 over the past decade. While the company's 10-year median is 29.55 vs. the industry median of 3.87, California Software Co 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 3.87, based on 2,820 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. California Software Co's current Operating Margin % of 88.35% is 2185.9% 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 California Software Co and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. California Software Co's current Operating Margin % is 88.35%, which is 199% above median its own 10-year median of 29.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is California Software Co stock overvalued right now?
Based on GuruFocus' analysis, California Software Co (NSE:CALSOFT) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹28.31, compared to a current price of ₹23.87 — trading 15.7% below its estimated fair value. The current Operating Margin % is 88.35%, which is 199% above median its 10-year median of 29.55 and 2185.9% above the Software industry median of 3.87. California Software Co's overall GF Score™ is 86/100 with 4 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 California Software Co (NSE:CALSOFT), the current Operating Margin % is 88.35% 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 California Software Co (NSE:CALSOFT) Overvalued in 2026?
Based on GuruFocus' analysis, California Software Co stock appears to be undervalued.
The current stock price of ₹23.87 is trading 15.7% below its estimated GF Value™ of ₹28.31.
GuruFocus considers California Software Co to be Modestly Undervalued.
Key valuation signals for NSE:CALSOFT:
Operating Margin %: 88.35% (199% above median its 10-year median of 29.55)
GF Value™: ₹28.31 vs. price of ₹23.87 (15.7% below fair value)
Industry Position: 2185.9% above the Software median (#12 of 2820)
No single metric tells the full story. See the NSE:CALSOFT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
California Software Co Ltd is a software product development company. It is engaged in providing outsourcing enterprise software solutions, information technology solutions, and product engineering services. The products and services offered by the company include CRM, e-commerce, Food Delivery App, Pharmacy, ERP, Marketing, and other services.
86GF Score
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