Solution DynamicsNZSE:SDL 59 Operating Margin % is 0.76% as of Dec. 2025, which is 91% below its 10-year median of 8.13. GuruFocus rates NZSE:SDL with a GF Score™ of 59/100 and a GF Value™ of NZ$0.99 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 2,818 Software companies, Solution Dynamics ranks worse than 58.37% 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.
Solution Dynamics Operating Margin % Related Terms
Solution Dynamics Operating Margin % Historical Data
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The historical data trend for Solution Dynamics'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.
NZSE:SDL vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Solution Dynamics'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.
Solution Dynamics Operating Margin % vs Software Industry
For the Software industry and Technology sector, Solution Dynamics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Solution Dynamics'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.
Solution Dynamics's Operating Margin % for the fiscal year that ended in Jun. 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.
Solution Dynamics (NZSE:SDL) has a Operating Margin % of 0.76% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Solution Dynamics and its competitors. This is 91% below median its historical median of 8.13. Over the past decade, Solution Dynamics' Operating Margin % has ranged from 0.84 to 11.74. According to the industry distribution chart, Solution Dynamics ranks #1645 out of 2818 companies in the Software industry, placing it in the top 58.4%.
Is Solution Dynamics' Operating Margin % too high?
Solution Dynamics' current Operating Margin % of 0.76% is 91% below median its 10-year median of 8.13. Over the past 10 years, this metric has ranged from a low of 0.84 to a high of 11.74. The Software industry median Operating Margin % is 3.87. Solution Dynamics' value of 0.76% is 80.3% below this industry median. Based on the distribution chart, Solution Dynamics ranks #1645 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Solution Dynamics has a GF Score™ of 59/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Solution Dynamics' Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Solution Dynamics ranks #1645 out of 2818 companies for Operating Margin %. This places Solution Dynamics in the lower half of its industry. The industry median Operating Margin % is 3.87. Solution Dynamics' value of 0.76% is 80.3% below this benchmark. Historically, Solution Dynamics' own Operating Margin % has ranged from 0.84 to 11.74 over the past decade. While the company's 10-year median is 8.13 vs. the industry median of 3.87, Solution Dynamics 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 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. Solution Dynamics's current Operating Margin % of 0.76% is 80.3% 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 Solution Dynamics 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. Solution Dynamics's current Operating Margin % is 0.76%, which is 91% below median its own 10-year median of 8.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solution Dynamics stock overvalued right now?
Based on GuruFocus' analysis, Solution Dynamics (NZSE:SDL) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$0.99, compared to a current price of NZ$0.58 — trading 41.4% below its estimated fair value. The current Operating Margin % is 0.76%, which is 91% below median its 10-year median of 8.13 and 80.3% below the Software industry median of 3.87. Solution Dynamics' overall GF Score™ is 59/100 with 3 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 Solution Dynamics (NZSE:SDL), the current Operating Margin % is 0.76% 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 Solution Dynamics (NZSE:SDL) Overvalued in 2026?
Based on GuruFocus' analysis, Solution Dynamics stock appears to be undervalued.
The current stock price of NZ$0.58 is trading 41.4% below its estimated GF Value™ of NZ$0.99.
GuruFocus considers Solution Dynamics to be Significantly Undervalued.
Key valuation signals for NZSE:SDL:
Operating Margin %: 0.76% (91% below median its 10-year median of 8.13)
GF Value™: NZ$0.99 vs. price of NZ$0.58 (41.4% below fair value)
Industry Position: 80.3% below the Software median (#1645 of 2818)
No single metric tells the full story. See the NZSE:SDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solution Dynamics Ltd is a company engaged in providing customer communications solutions. Its products and services are represented by revenue streams: Digital Printing & Document Handling Services; and Software and Technology, Outsourced services. Services include digital print and mail house processing for mail items like invoices, statements, and promotional materials. Software and Technology develop and markets its software products related to multi-channel marketing communications including digital asset management, communication templates, campaign management, document archiving, document composition, and desktop mail solutions among others. Its outsourced services elements are the post, freight, paper, and envelopes.
59GF Score
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