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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.
Smartlink Holdings Operating Margin % Related Terms
Smartlink Holdings Operating Margin % Historical Data
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The historical data trend for Smartlink Holdings'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:SMARTLINK vs CSCO, MSI, HPE: Operating Margin % Comparison
For the Communication Equipment subindustry, Smartlink Holdings'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.
Smartlink Holdings Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Smartlink Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Smartlink Holdings'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.
Smartlink Holdings'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.
Smartlink Holdings (NSE:SMARTLINK) has a Operating Margin % of 7.66% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Smartlink Holdings and its competitors. According to the industry distribution chart, Smartlink Holdings ranks #1364 out of 2475 companies in the Hardware industry, placing it in the top 55.1%.
Is Smartlink Holdings' Operating Margin % too high?
Smartlink Holdings' current Operating Margin % is 7.66%. The Hardware industry median Operating Margin % is 3.84. Smartlink Holdings' value of 7.66% is 99.5% above this industry median. Based on the distribution chart, Smartlink Holdings ranks #1364 out of 2475 companies in the Hardware industry, which is below the industry midpoint. Overall, Smartlink Holdings has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Smartlink Holdings' Operating Margin % compare to CSCO and MSI?
According to the Hardware industry distribution chart, Smartlink Holdings ranks #1364 out of 2475 companies for Operating Margin %. This places Smartlink Holdings in the lower half of its industry. The industry median Operating Margin % is 3.84. Smartlink Holdings' value of 7.66% is 99.5% above this benchmark. 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 3.84, based on 2,475 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. Smartlink Holdings's current Operating Margin % of 7.66% is 99.5% 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 Smartlink Holdings and its competitors. For the Hardware industry, the median Operating Margin % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smartlink Holdings's current Operating Margin % is 7.66%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smartlink Holdings stock overvalued right now?
Based on GuruFocus' analysis, Smartlink Holdings (NSE:SMARTLINK) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹273.29, compared to a current price of ₹201.90 — trading 26.1% below its estimated fair value. The current Operating Margin % is 7.66% and 99.5% above the Hardware industry median of 3.84. Smartlink Holdings' overall GF Score™ is 80/100 with 7 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 Smartlink Holdings (NSE:SMARTLINK), the current Operating Margin % is 7.66% 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 Smartlink Holdings (NSE:SMARTLINK) Overvalued in 2026?
Based on GuruFocus' analysis, Smartlink Holdings stock appears to be undervalued.
The current stock price of ₹201.90 is trading 26.1% below its estimated GF Value™ of ₹273.29.
GuruFocus considers Smartlink Holdings to be Modestly Undervalued.
Key valuation signals for NSE:SMARTLINK:
Operating Margin %: 7.66%
GF Value™: ₹273.29 vs. price of ₹201.90 (26.1% below fair value)
Industry Position: 99.5% above the Hardware median (#1364 of 2475)
No single metric tells the full story. See the NSE:SMARTLINK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smartlink Holdings Ltd is a holding company. The company and its subsidiaries are engaged in the marketing of networking products, manufacturing of structured cabling products, and electronics manufacturing. The Company's business activities are mainly related to Investments and Real Estate, which are assessed as a single reportable operating segment. The Company has two business segments which is Investment Earning income through dividends, interest, rentals and gains on Investment in securities and property. Networking is Developing, manufacturing, marketing, distributing, and servicing of networking products. The company generates maximum revenue from the Networking products segment. Geographically, it derives a majority of its revenue from India.
80GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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