Frog InnovationsNSE:FROG +4.97%70 Operating Margin % is 11.40% as of Sep. 2025, which is 15% below its 10-year median of 13.44. GuruFocus rates NSE:FROG with a GF Score™ of 70/100 and a GF Value™ of ₹344.02 (Possible Value Trap). The stock has 3 warning signs investors should review. Among 2,472 Hardware companies, Frog Innovations ranks better than 84.67% 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.
Frog Innovations Operating Margin % Related Terms
Frog Innovations Operating Margin % Historical Data
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The historical data trend for Frog Innovations'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:FROG vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Frog Innovations'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.
Frog Innovations Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Frog Innovations's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Frog Innovations'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.
Frog Innovations'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.
Frog Innovations (NSE:FROG) has a Operating Margin % of 11.40% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Frog Innovations and its competitors. This is 15% below median its historical median of 13.44. Over the past decade, Frog Innovations' Operating Margin % has ranged from 5.45 to 17.53. According to the industry distribution chart, Frog Innovations ranks #379 out of 2472 companies in the Hardware industry, placing it in the top 15.3%.
Is Frog Innovations' Operating Margin % too high?
Frog Innovations' current Operating Margin % of 11.40% is 15% below median its 10-year median of 13.44. Over the past 10 years, this metric has ranged from a low of 5.45 to a high of 17.53. The Hardware industry median Operating Margin % is 3.81. Frog Innovations' value of 11.40% is 199.2% above this industry median. Based on the distribution chart, Frog Innovations ranks #379 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Frog Innovations has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Frog Innovations' Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Frog Innovations ranks #379 out of 2472 companies for Operating Margin %. This places Frog Innovations in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. Frog Innovations' value of 11.40% is 199.2% above this benchmark. Historically, Frog Innovations' own Operating Margin % has ranged from 5.45 to 17.53 over the past decade. While the company's 10-year median is 13.44 vs. the industry median of 3.81, Frog Innovations 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. Frog Innovations's current Operating Margin % of 11.40% is 199.2% 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 Frog Innovations and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frog Innovations's current Operating Margin % is 11.40%, which is 15% below median its own 10-year median of 13.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frog Innovations stock overvalued right now?
Based on GuruFocus' analysis, Frog Innovations (NSE:FROG) is currently considered Possible Value Trap. The stock's GF Value™ is ₹344.02, compared to a current price of ₹168.05 — trading 51.2% below its estimated fair value. The current Operating Margin % is 11.40%, which is 15% below median its 10-year median of 13.44 and 199.2% above the Hardware industry median of 3.81. Frog Innovations' overall GF Score™ is 70/100 with 3 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 Frog Innovations (NSE:FROG), the current Operating Margin % is 11.40% 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.
Is Frog Innovations (NSE:FROG) Overvalued in 2026?
Based on GuruFocus' analysis, Frog Innovations stock appears to be undervalued.
The current stock price of ₹168.05 is trading 51.2% below its estimated GF Value™ of ₹344.02.
GuruFocus considers Frog Innovations to be Possible Value Trap.
Key valuation signals for NSE:FROG:
Operating Margin %: 11.40% (15% below median its 10-year median of 13.44)
GF Value™: ₹344.02 vs. price of ₹168.05 (51.2% below fair value)
Industry Position: 199.2% above the Hardware median (#379 of 2472)
No single metric tells the full story. See the NSE:FROG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frog Innovations Ltd is a company engaged in manufacturing telecom equipment used by telecom operators, especially in Telecom Towers. The company manufactures 2G/3G/4G/5G Multi-band Digital RF Repeaters, Multi-band Frequency Shift Repeaters, Multi-band Optical DAS systems, relative software, and accessories. The company also offers In-Building Coverage Planning and Design services along with Radio Access Network (RAN) and Backhaul Network installation services. The company collectively operates only in one business segment manufacturing and installation of in-building coverage solutions and mobile network accessories for mobile service providers and operators. It provides its products and services across Asia, Europe, Africa, and the Middle East.
70GF Score
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