Canarys AutomationsNSE:CANARYS -3.69%20 Operating Margin % is 12.10% as of Sep. 2025, which is 13% below its 10-year median of 13.87. GuruFocus rates NSE:CANARYS with a GF Score™ of 20/100. The stock has 1 warning sign investors should review. Among 2,820 Software companies, Canarys Automations ranks better than 74.57% 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.
Canarys Automations Operating Margin % Related Terms
Canarys Automations Operating Margin % Historical Data
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The historical data trend for Canarys Automations'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:CANARYS vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Canarys Automations'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.
Canarys Automations Operating Margin % vs Software Industry
For the Software industry and Technology sector, Canarys Automations's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Canarys Automations'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.
Canarys Automations's Operating Margin % for the fiscal year that ended in Mar. 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.
Canarys Automations (NSE:CANARYS) has a Operating Margin % of 12.10% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Canarys Automations and its competitors. This is 13% below median its historical median of 13.87. Over the past decade, Canarys Automations' Operating Margin % has ranged from 12.08 to 16.82. According to the industry distribution chart, Canarys Automations ranks #717 out of 2820 companies in the Software industry, placing it in the top 25.4%.
Is Canarys Automations' Operating Margin % too high?
Canarys Automations' current Operating Margin % of 12.10% is 13% below median its 10-year median of 13.87. Over the past 10 years, this metric has ranged from a low of 12.08 to a high of 16.82. The Software industry median Operating Margin % is 3.87. Canarys Automations' value of 12.10% is 213.1% above this industry median. Based on the distribution chart, Canarys Automations ranks #717 out of 2820 companies in the Software industry, which is above the industry midpoint. Overall, Canarys Automations has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Canarys Automations' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Canarys Automations ranks #717 out of 2820 companies for Operating Margin %. This puts Canarys Automations in the upper half of its industry. The industry median Operating Margin % is 3.87. Canarys Automations' value of 12.10% is 213.1% above this benchmark. Historically, Canarys Automations' own Operating Margin % has ranged from 12.08 to 16.82 over the past decade. While the company's 10-year median is 13.87 vs. the industry median of 3.87, Canarys Automations 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. Canarys Automations's current Operating Margin % of 12.10% is 213.1% 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 Canarys Automations 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. Canarys Automations's current Operating Margin % is 12.10%, which is 13% below median its own 10-year median of 13.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canarys Automations stock overvalued right now?
Canarys Automations (NSE:CANARYS) has a current Operating Margin % of 12.10%. The current Operating Margin % is 12.10%, which is 13% below median its 10-year median of 13.87 and 213.1% above the Software industry median of 3.87. Canarys Automations' overall GF Score™ is 20/100 with 1 warning sign 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 Canarys Automations (NSE:CANARYS), the current Operating Margin % is 12.10% as of Sep. 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.
Canarys Automations Ltd is an IT solutions provider specializing in enabling digital transformation for businesses through its software solutions in the areas of Digitalization, Modernization, Automation, and Intelligence. The company's solutions include Digital Transformation, Digital DevOps, Digital Assurance, Telemetry, Water Resources Management, and Cloud IT, and are delivered across industry sectors such as BFSI, Retail, Healthcare, Pharmaceutical, Manufacturing, and Insurance. it operates through two segments, Technology Solutions and Water Resource Management Solutions, with the majority of its revenue generated from the Technology Solutions segment. The company's revenue is generated from India sales, which contribute the maximum revenue, and international sales.
20GF Score
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