Nortech SystemsNSYS +3.32%54 Operating Margin % is 0.16% as of Mar. 2026, which is 80% below its 10-year median of 0.80. GuruFocus rates NSYS with a GF Score™ of 54/100 and a GF Value™ of $9.25 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 816 Medical Devices & Instruments companies, Nortech Systems ranks worse than 52.7% on this metric.
The historical rank and industry rank for Nortech Systems's Operating Margin % or its related term are showing as below:
NSYS'
s Operating Margin % Range Over the Past 10 Years
Min: -1.98 Med: 0.8 Max: 4.27
Current: 2.16
NSYS's Operating Margin % is ranked worse than 52.7% of 816
companies
in the Medical Devices & Instruments industry
Industry Median: 3.465
vs NSYS: 2.16
Nortech Systems's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Nortech Systems Inc has recorded a loss in operating income at least once over the past 3 years.
Nortech Systems (NAS:NSYS) 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.
Nortech Systems Operating Margin % Related Terms
Nortech Systems Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nortech Systems'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.
NSYS vs MYO, NSPR, TELA: Operating Margin % Comparison
For the Medical Devices subindustry, Nortech Systems'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.
Nortech Systems Operating Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Nortech Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nortech Systems'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.
Nortech Systems's Operating Margin % for the fiscal year that ended in Dec. 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.
Nortech Systems (NSYS) has a Operating Margin % of 0.16% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nortech Systems and its competitors. This is 80% below median its historical median of 0.80. According to the industry distribution chart, Nortech Systems ranks #430 out of 816 companies in the Medical Devices & Instruments industry, placing it in the top 52.7%.
Is Nortech Systems' Operating Margin % too high?
Nortech Systems' current Operating Margin % of 0.16% is 80% below median its 10-year median of 0.80. The Medical Devices & Instruments industry median Operating Margin % is 3.47. Nortech Systems' value of 0.16% is 95.4% below this industry median. Based on the distribution chart, Nortech Systems ranks #430 out of 816 companies in the Medical Devices & Instruments industry, which is below the industry midpoint. Overall, Nortech Systems has a GF Score™ of 54/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nortech Systems' Operating Margin % compare to MYO and NSPR?
According to the Medical Devices & Instruments industry distribution chart, Nortech Systems ranks #430 out of 816 companies for Operating Margin %. This places Nortech Systems in the lower half of its industry. The industry median Operating Margin % is 3.47. Nortech Systems' value of 0.16% is 95.4% below this benchmark. While the company's 10-year median is 0.80 vs. the industry median of 3.47, Nortech Systems has consistently been below 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 Medical Devices & Instruments company?
The median Operating Margin % among Medical Devices & Instruments companies is 3.47, based on 816 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. Nortech Systems's current Operating Margin % of 0.16% is 95.4% below 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 Nortech Systems and its competitors. For the Medical Devices & Instruments industry, the median Operating Margin % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nortech Systems's current Operating Margin % is 0.16%, which is 80% below median its own 10-year median of 0.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nortech Systems stock overvalued right now?
Based on GuruFocus' analysis, Nortech Systems (NSYS) is currently considered Significantly Overvalued. The stock's GF Value™ is $9.25, compared to a current price of $16.50 — trading 78.4% above its estimated fair value. The current Operating Margin % is 0.16%, which is 80% below median its 10-year median of 0.80 and 95.4% below the Medical Devices & Instruments industry median of 3.47. Nortech Systems' overall GF Score™ is 54/100 with 8 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 Nortech Systems (NSYS), the current Operating Margin % is 0.16% 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 Nortech Systems (NSYS) Overvalued in 2026?
Based on GuruFocus' analysis, Nortech Systems stock appears to be overvalued.
The current stock price of $16.50 is trading 78.4% above its estimated GF Value™ of $9.25.
GuruFocus considers Nortech Systems to be Significantly Overvalued.
Key valuation signals for NSYS:
Operating Margin %: 0.16% (80% below median its 10-year median of 0.80)
GF Value™: $9.25 vs. price of $16.50 (78.4% above fair value)
Industry Position: 95.4% below the Medical Devices & Instruments median (#430 of 816)
No single metric tells the full story. See the NSYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nortech Systems Inc is a United States-based electronic manufacturing services company. It offers value-added engineering, technical, and manufacturing services and support, including project management, design, testing, prototyping, manufacturing, supply chain management, and post-market services. The company's manufacturing and engineering services include complete medical devices, printed circuit board assemblies, wire and cable assemblies, and complex higher-level electro-mechanical assemblies. It operates in the Medical, Aerospace, Defense, and Industrial markets, with key revenue coming from medical-related markets.
54GF Score
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