Dynacons Systems & Solutions (NSE:DSSL) 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.
Dynacons Systems & Solutions Operating Margin % Related Terms
Dynacons Systems & Solutions 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.
Dynacons Systems & Solutions Operating Margin % Chart
NSE:DSSL vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Dynacons Systems & Solutions'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.
Dynacons Systems & Solutions Operating Margin % vs Software Industry
For the Software industry and Technology sector, Dynacons Systems & Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dynacons Systems & Solutions's Operating Margin % falls into.
Dynacons Systems & Solutions 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.
* 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.
Dynacons Systems & Solutions (NSE:DSSL) has a Operating Margin % of 7.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dynacons Systems & Solutions and its competitors. This is 72% above median its historical median of 4.34. Over the past decade, Dynacons Systems & Solutions' Operating Margin % has ranged from 2.59 to 9.23. According to the industry distribution chart, Dynacons Systems & Solutions ranks #909 out of 2818 companies in the Software industry, placing it in the top 32.3%.
Is Dynacons Systems & Solutions' Operating Margin % too high?
Dynacons Systems & Solutions' current Operating Margin % of 7.46% is 72% above median its 10-year median of 4.34. Over the past 10 years, this metric has ranged from a low of 2.59 to a high of 9.23. The Software industry median Operating Margin % is 3.87. Dynacons Systems & Solutions' value of 7.46% is 93% above this industry median. Based on the distribution chart, Dynacons Systems & Solutions ranks #909 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Dynacons Systems & Solutions has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dynacons Systems & Solutions' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Dynacons Systems & Solutions ranks #909 out of 2818 companies for Operating Margin %. This puts Dynacons Systems & Solutions in the upper half of its industry. The industry median Operating Margin % is 3.87. Dynacons Systems & Solutions' value of 7.46% is 93% above this benchmark. Historically, Dynacons Systems & Solutions' own Operating Margin % has ranged from 2.59 to 9.23 over the past decade. While the company's 10-year median is 4.34 vs. the industry median of 3.87, Dynacons Systems & Solutions 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. Dynacons Systems & Solutions's current Operating Margin % of 7.46% is 93% 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 Dynacons Systems & Solutions 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. Dynacons Systems & Solutions's current Operating Margin % is 7.46%, which is 72% above median its own 10-year median of 4.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dynacons Systems & Solutions stock overvalued right now?
Based on GuruFocus' analysis, Dynacons Systems & Solutions (NSE:DSSL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₹1,199.05, compared to a current price of ₹1,378.80 — trading 15% above its estimated fair value. The current Operating Margin % is 7.46%, which is 72% above median its 10-year median of 4.34 and 93% above the Software industry median of 3.87. Dynacons Systems & Solutions' overall GF Score™ is 81/100 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 Dynacons Systems & Solutions (NSE:DSSL), the current Operating Margin % is 7.46% 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 Dynacons Systems & Solutions (NSE:DSSL) Overvalued in 2026?
Based on GuruFocus' analysis, Dynacons Systems & Solutions stock appears to be overvalued.
The current stock price of ₹1,378.80 is trading 15% above its estimated GF Value™ of ₹1,199.05.
GuruFocus considers Dynacons Systems & Solutions to be Modestly Overvalued.
Key valuation signals for NSE:DSSL:
Operating Margin %: 7.46% (72% above median its 10-year median of 4.34)
GF Value™: ₹1,199.05 vs. price of ₹1,378.80 (15% above fair value)
Industry Position: 93% above the Software median (#909 of 2818)
No single metric tells the full story. See the NSE:DSSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dynacons Systems & Solutions Ltd is an India-based IT company providing end-to-end technology services. It operates in two segments: System Integration and Technology Workforce Augmentation Services. The company's offerings include enterprise IT and office automation services such as IT infrastructure managed services, break-fix services, managed print services, cloud computing, system integration, and application development and maintenance. It also provides IT infrastructure design, consulting, and turnkey systems integration of large networks and data centers. The majority of its revenue is generated from India.
81GF Score
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