Magellanic CloudNSE:MCLOUD -3.04%63 Operating Margin % is 17.92% as of Mar. 2026, which is 261% above its 10-year median of 4.96. GuruFocus rates NSE:MCLOUD with a GF Score™ of 63/100 and a GF Value™ of ₹84.68 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,820 Software companies, Magellanic Cloud ranks better than 90.78% 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.
Magellanic Cloud Operating Margin % Related Terms
Magellanic Cloud Operating Margin % Historical Data
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The historical data trend for Magellanic Cloud'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:MCLOUD vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Magellanic Cloud'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.
Magellanic Cloud Operating Margin % vs Software Industry
For the Software industry and Technology sector, Magellanic Cloud's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Magellanic Cloud'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.
Magellanic Cloud's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Magellanic Cloud (NSE:MCLOUD) has a Operating Margin % of 17.92% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Magellanic Cloud and its competitors. This is 261% above median its historical median of 4.96. Over the past decade, Magellanic Cloud's Operating Margin % has ranged from 0.12 to 27.30. According to the industry distribution chart, Magellanic Cloud ranks #260 out of 2820 companies in the Software industry, placing it in the top 9.2%.
Is Magellanic Cloud's Operating Margin % too high?
Magellanic Cloud's current Operating Margin % of 17.92% is 261% above median its 10-year median of 4.96. Over the past 10 years, this metric has ranged from a low of 0.12 to a high of 27.30. The Software industry median Operating Margin % is 3.87. Magellanic Cloud's value of 17.92% is 363.6% above this industry median. Based on the distribution chart, Magellanic Cloud ranks #260 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Magellanic Cloud has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Magellanic Cloud's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Magellanic Cloud ranks #260 out of 2820 companies for Operating Margin %. This places Magellanic Cloud in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Magellanic Cloud's value of 17.92% is 363.6% above this benchmark. Historically, Magellanic Cloud's own Operating Margin % has ranged from 0.12 to 27.30 over the past decade. While the company's 10-year median is 4.96 vs. the industry median of 3.87, Magellanic Cloud 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. Magellanic Cloud's current Operating Margin % of 17.92% is 363.6% 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 Magellanic Cloud 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. Magellanic Cloud's current Operating Margin % is 17.92%, which is 261% above median its own 10-year median of 4.96. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magellanic Cloud stock overvalued right now?
Based on GuruFocus' analysis, Magellanic Cloud (NSE:MCLOUD) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹84.68, compared to a current price of ₹27.13 — trading 68% below its estimated fair value. The current Operating Margin % is 17.92%, which is 261% above median its 10-year median of 4.96 and 363.6% above the Software industry median of 3.87. Magellanic Cloud's overall GF Score™ is 63/100 with 2 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 Magellanic Cloud (NSE:MCLOUD), the current Operating Margin % is 17.92% 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 Magellanic Cloud (NSE:MCLOUD) Overvalued in 2026?
Based on GuruFocus' analysis, Magellanic Cloud stock appears to be undervalued.
The current stock price of ₹27.13 is trading 68% below its estimated GF Value™ of ₹84.68.
GuruFocus considers Magellanic Cloud to be Significantly Undervalued.
Key valuation signals for NSE:MCLOUD:
Operating Margin %: 17.92% (261% above median its 10-year median of 4.96)
GF Value™: ₹84.68 vs. price of ₹27.13 (68% below fair value)
Industry Position: 363.6% above the Software median (#260 of 2820)
No single metric tells the full story. See the NSE:MCLOUD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magellanic Cloud Ltd is a provider of IT services. It is engaged in the business of IT solutions, E-Surveillance, and Human Capital. Its main activity includes IT Consulting Services, which develop and design Software Applications, Monitoring Services, and Trading. Its services are Digital Transformation, Product Engineering, Product Development, Quality Assurance, DevOps, Multi-Cloud & DevOps Automation, Process Automation, Data Analytics, and Others. The Company operates in one reportable business segment, namely IT and IT-related Services.
63GF Score
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