Newgen Software TechnologiesNSE:NEWGEN +0.11%86 Operating Margin % is 24.28% as of Dec. 2025, which is 19% above its 10-year median of 20.41. GuruFocus rates NSE:NEWGEN with a GF Score™ of 86/100 and a GF Value™ of ₹1,054.92 (Significantly Undervalued). Among 2,818 Software companies, Newgen Software Technologies ranks better than 90.31% 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.
Newgen Software Technologies Operating Margin % Related Terms
Newgen Software Technologies 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:NEWGEN vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Newgen Software Technologies'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.
Newgen Software Technologies Operating Margin % vs Software Industry
For the Software industry and Technology sector, Newgen Software Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Newgen Software Technologies'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.
Newgen Software Technologies (NSE:NEWGEN) has a Operating Margin % of 24.28% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Newgen Software Technologies and its competitors. This is 19% above median its historical median of 20.41. Over the past decade, Newgen Software Technologies' Operating Margin % has ranged from 10.35 to 25.83. According to the industry distribution chart, Newgen Software Technologies ranks #273 out of 2818 companies in the Software industry, placing it in the top 9.7%.
Is Newgen Software Technologies' Operating Margin % too high?
Newgen Software Technologies' current Operating Margin % of 24.28% is 19% above median its 10-year median of 20.41. Over the past 10 years, this metric has ranged from a low of 10.35 to a high of 25.83. The Software industry median Operating Margin % is 3.87. Newgen Software Technologies' value of 24.28% is 528.2% above this industry median. Based on the distribution chart, Newgen Software Technologies ranks #273 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Newgen Software Technologies has a GF Score™ of 86/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Newgen Software Technologies' Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Newgen Software Technologies ranks #273 out of 2818 companies for Operating Margin %. This places Newgen Software Technologies in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Newgen Software Technologies' value of 24.28% is 528.2% above this benchmark. Historically, Newgen Software Technologies' own Operating Margin % has ranged from 10.35 to 25.83 over the past decade. While the company's 10-year median is 20.41 vs. the industry median of 3.87, Newgen Software Technologies 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. Newgen Software Technologies's current Operating Margin % of 24.28% is 528.2% 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 Newgen Software Technologies 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. Newgen Software Technologies's current Operating Margin % is 24.28%, which is 19% above median its own 10-year median of 20.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newgen Software Technologies stock overvalued right now?
Based on GuruFocus' analysis, Newgen Software Technologies (NSE:NEWGEN) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹1,054.92, compared to a current price of ₹473.10 — trading 55.2% below its estimated fair value. The current Operating Margin % is 24.28%, which is 19% above median its 10-year median of 20.41 and 528.2% above the Software industry median of 3.87. Newgen Software Technologies' overall GF Score™ is 86/100. 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 Newgen Software Technologies (NSE:NEWGEN), the current Operating Margin % is 24.28% as of Dec. 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 Newgen Software Technologies (NSE:NEWGEN) Overvalued in 2026?
Based on GuruFocus' analysis, Newgen Software Technologies stock appears to be undervalued.
The current stock price of ₹473.10 is trading 55.2% below its estimated GF Value™ of ₹1,054.92.
GuruFocus considers Newgen Software Technologies to be Significantly Undervalued.
Key valuation signals for NSE:NEWGEN:
Operating Margin %: 24.28% (19% above median its 10-year median of 20.41)
GF Value™: ₹1,054.92 vs. price of ₹473.10 (55.2% below fair value)
Industry Position: 528.2% above the Software median (#273 of 2818)
No single metric tells the full story. See the NSE:NEWGEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newgen Software Technologies Ltd is a software company. It is engaged in software product development including designing and delivering end-to-end software solutions covering the entire spectrum of software services from workflow automation to Document management to imaging. The entity's geographical segments are India; USA, and Africa (EMEA); Asia Pacific (APAC); and the United States of America (USA). It generates key revenue from India and the EMEA region. The company's NewgenONE Platform is a unified low-code platform for end-to-end automation at scale for enterprises. The platform offerings include Contextual Content Services (ECM), Intelligent Process Automation (BPM), Omnichannel Customer Engagement (CCM), and Low Code Application Development.
86GF Score
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