Knowledge Marine & Engineering Works (NSE:KMEW) 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.
Knowledge Marine & Engineering Works Operating Margin % Related Terms
Knowledge Marine & Engineering Works 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.
Knowledge Marine & Engineering Works Operating Margin % Chart
Knowledge Marine & Engineering Works Operating Margin % Competitor Comparison
For the Marine Shipping subindustry, Knowledge Marine & Engineering Works'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.
Knowledge Marine & Engineering Works Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Knowledge Marine & Engineering Works's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Knowledge Marine & Engineering Works's Operating Margin % falls into.
Knowledge Marine & Engineering Works 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.
Knowledge Marine & Engineering Works (NSE:KMEW) has a Operating Margin % of 16.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Knowledge Marine & Engineering Works and its competitors. This is 50% below median its historical median of 31.94. Over the past decade, Knowledge Marine & Engineering Works' Operating Margin % has ranged from 22.15 to 50.53. According to the industry distribution chart, Knowledge Marine & Engineering Works ranks #103 out of 1007 companies in the Transportation industry, placing it in the top 10.2%.
Is Knowledge Marine & Engineering Works' Operating Margin % too high?
Knowledge Marine & Engineering Works' current Operating Margin % of 16.12% is 50% below median its 10-year median of 31.94. Over the past 10 years, this metric has ranged from a low of 22.15 to a high of 50.53. The Transportation industry median Operating Margin % is 7.36. Knowledge Marine & Engineering Works' value of 16.12% is 119% above this industry median. Based on the distribution chart, Knowledge Marine & Engineering Works ranks #103 out of 1007 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Knowledge Marine & Engineering Works has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Knowledge Marine & Engineering Works' Operating Margin % compare to competitors?
According to the Transportation industry distribution chart, Knowledge Marine & Engineering Works ranks #103 out of 1007 companies for Operating Margin %. This places Knowledge Marine & Engineering Works in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.36. Knowledge Marine & Engineering Works' value of 16.12% is 119% above this benchmark. Historically, Knowledge Marine & Engineering Works' own Operating Margin % has ranged from 22.15 to 50.53 over the past decade. While the company's 10-year median is 31.94 vs. the industry median of 7.36, Knowledge Marine & Engineering Works 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. Knowledge Marine & Engineering Works's current Operating Margin % of 16.12% is 119% 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 Knowledge Marine & Engineering Works and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knowledge Marine & Engineering Works's current Operating Margin % is 16.12%, which is 50% below median its own 10-year median of 31.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knowledge Marine & Engineering Works stock overvalued right now?
Based on GuruFocus' analysis, Knowledge Marine & Engineering Works (NSE:KMEW) is currently considered Significantly Overvalued. The stock's GF Value™ is ₹1,260.26, compared to a current price of ₹2,240.00 — trading 77.7% above its estimated fair value. The current Operating Margin % is 16.12%, which is 50% below median its 10-year median of 31.94 and 119% above the Transportation industry median of 7.36. Knowledge Marine & Engineering Works' overall GF Score™ is 57/100 with 9 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 Knowledge Marine & Engineering Works (NSE:KMEW), the current Operating Margin % is 16.12% 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 Knowledge Marine & Engineering Works (NSE:KMEW) Overvalued in 2026?
Based on GuruFocus' analysis, Knowledge Marine & Engineering Works stock appears to be overvalued.
The current stock price of ₹2,240.00 is trading 77.7% above its estimated GF Value™ of ₹1,260.26.
GuruFocus considers Knowledge Marine & Engineering Works to be Significantly Overvalued.
Key valuation signals for NSE:KMEW:
Operating Margin %: 16.12% (50% below median its 10-year median of 31.94)
GF Value™: ₹1,260.26 vs. price of ₹2,240.00 (77.7% above fair value)
Industry Position: 119% above the Transportation median (#103 of 1007)
No single metric tells the full story. See the NSE:KMEW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knowledge Marine & Engineering Works Business Description
Knowledge Marine & Engineering Works Ltd is engaged in the business of owning, chartering, and hiring, along with manning, operating, technical maintenance, and allied works of Marine Crafts and Marine Infrastructure. Geographically, the company operates in India and Myanmar. The majority of its revenue is derived from its business in India.
57GF Score
Get the complete analysis for NSE:KMEW
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NSE:KMEW has been successfully added to your 
