Cambridge Technology EnterprisesNSE:CTE -1.05%69 Operating Margin % is 11.33% as of Mar. 2026, which is 43% above its 10-year median of 7.92. GuruFocus rates NSE:CTE with a GF Score™ of 69/100 and a GF Value™ of ₹62.15 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 2,818 Software companies, Cambridge Technology Enterprises ranks worse than 54.4% 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.
Cambridge Technology Enterprises Operating Margin % Related Terms
Cambridge Technology Enterprises 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.
NSE:CTE vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Cambridge Technology Enterprises'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.
Cambridge Technology Enterprises Operating Margin % vs Software Industry
For the Software industry and Technology sector, Cambridge Technology Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cambridge Technology Enterprises'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.
Cambridge Technology Enterprises (NSE:CTE) has a Operating Margin % of 11.33% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cambridge Technology Enterprises and its competitors. This is 43% above median its historical median of 7.92. According to the industry distribution chart, Cambridge Technology Enterprises ranks #1533 out of 2818 companies in the Software industry, placing it in the top 54.4%.
Is Cambridge Technology Enterprises' Operating Margin % too high?
Cambridge Technology Enterprises' current Operating Margin % of 11.33% is 43% above median its 10-year median of 7.92. The Software industry median Operating Margin % is 3.87. Cambridge Technology Enterprises' value of 11.33% is 193.1% above this industry median. Based on the distribution chart, Cambridge Technology Enterprises ranks #1533 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Cambridge Technology Enterprises has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cambridge Technology Enterprises' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Cambridge Technology Enterprises ranks #1533 out of 2818 companies for Operating Margin %. This places Cambridge Technology Enterprises in the lower half of its industry. The industry median Operating Margin % is 3.87. Cambridge Technology Enterprises' value of 11.33% is 193.1% above this benchmark. While the company's 10-year median is 7.92 vs. the industry median of 3.87, Cambridge Technology Enterprises 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 2,818 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. Cambridge Technology Enterprises's current Operating Margin % of 11.33% is 193.1% 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 Cambridge Technology Enterprises 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. Cambridge Technology Enterprises's current Operating Margin % is 11.33%, which is 43% above median its own 10-year median of 7.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cambridge Technology Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Cambridge Technology Enterprises (NSE:CTE) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹62.15, compared to a current price of ₹31.18 — trading 49.8% below its estimated fair value. The current Operating Margin % is 11.33%, which is 43% above median its 10-year median of 7.92 and 193.1% above the Software industry median of 3.87. Cambridge Technology Enterprises' overall GF Score™ is 69/100 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 Cambridge Technology Enterprises (NSE:CTE), the current Operating Margin % is 11.33% 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 Cambridge Technology Enterprises (NSE:CTE) Overvalued in 2026?
Based on GuruFocus' analysis, Cambridge Technology Enterprises stock appears to be undervalued.
The current stock price of ₹31.18 is trading 49.8% below its estimated GF Value™ of ₹62.15.
GuruFocus considers Cambridge Technology Enterprises to be Significantly Undervalued.
Key valuation signals for NSE:CTE:
Operating Margin %: 11.33% (43% above median its 10-year median of 7.92)
GF Value™: ₹62.15 vs. price of ₹31.18 (49.8% below fair value)
Industry Position: 193.1% above the Software median (#1533 of 2818)
No single metric tells the full story. See the NSE:CTE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cambridge Technology Enterprises Business Description
Cambridge Technology Enterprises Ltd is a business and technology company, engaged in software development and information technology (IT) related activities. It offers various services, which include cloud computing, artificial intelligence (AI), enterprise mobility, DevOps, and application development. The company derives revenue from India, the USA, the Philippines, and other regions, of which the maximum revenue is generated from the USA. The company generates revenue from the sale of software services and the sale of software licenses, where the majority of its revenue is derived from the sale of software services.
69GF Score
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