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Octave IntelligenceOCTV +5.29%19 Operating Margin % is 24.34% as of Dec. 2024, which is 12% above its 10-year median of 21.74. GuruFocus rates OCTV with a GF Score™ of 19/100. The stock has 1 warning sign investors should review. Among 2,826 Software companies, Octave Intelligence ranks better than 91.44% 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.
Octave Intelligence Operating Margin % Related Terms
Octave Intelligence Operating Margin % Historical Data
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The historical data trend for Octave Intelligence'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.
Octave Intelligence Operating Margin % Chart
Octave Intelligence Annual Data
Trend
Dec22
Dec23
Dec24
Operating Margin %
21.74
20.70
24.34
Octave Intelligence Semi-Annual Data
Dec22
Dec23
Dec24
Operating Margin %
21.74
20.70
24.34
OCTV vs SRAD, DAVE, LIF: Operating Margin % Comparison
For the Software - Application subindustry, Octave Intelligence'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.
Octave Intelligence Operating Margin % vs Software Industry
For the Software industry and Technology sector, Octave Intelligence's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Octave Intelligence'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.
Octave Intelligence's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Octave Intelligence (OCTV) has a Operating Margin % of 24.34% as of Dec. 2024. Operating margin is the ratio of total operating income to net sales. View historical data on Octave Intelligence and its competitors. This is 12% above median its historical median of 21.74. Over the past decade, Octave Intelligence's Operating Margin % has ranged from 20.70 to 24.34. According to the industry distribution chart, Octave Intelligence ranks #242 out of 2826 companies in the Software industry, placing it in the top 8.6%.
Is Octave Intelligence's Operating Margin % too high?
Octave Intelligence's current Operating Margin % of 24.34% is 12% above median its 10-year median of 21.74. Over the past 10 years, this metric has ranged from a low of 20.70 to a high of 24.34. The Software industry median Operating Margin % is 3.90. Octave Intelligence's value of 24.34% is 524.1% above this industry median. Based on the distribution chart, Octave Intelligence ranks #242 out of 2826 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Octave Intelligence has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Octave Intelligence's Operating Margin % compare to SRAD and DAVE?
According to the Software industry distribution chart, Octave Intelligence ranks #242 out of 2826 companies for Operating Margin %. This places Octave Intelligence in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.90. Octave Intelligence's value of 24.34% is 524.1% above this benchmark. Historically, Octave Intelligence's own Operating Margin % has ranged from 20.70 to 24.34 over the past decade. While the company's 10-year median is 21.74 vs. the industry median of 3.90, Octave Intelligence 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 3.90, based on 2,826 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. Octave Intelligence's current Operating Margin % of 24.34% is 524.1% 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 Octave Intelligence and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Octave Intelligence's current Operating Margin % is 24.34%, which is 12% above median its own 10-year median of 21.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Octave Intelligence stock overvalued right now?
Octave Intelligence (OCTV) has a current Operating Margin % of 24.34%. The current Operating Margin % is 24.34%, which is 12% above median its 10-year median of 21.74 and 524.1% above the Software industry median of 3.90. Octave Intelligence's overall GF Score™ is 19/100 with 1 warning sign 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 Octave Intelligence (OCTV), the current Operating Margin % is 24.34% as of Dec. 2024. 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.
Octave Intelligence PLC provides a suite of software solutions that help organizations design, build, operate, and protect their physical assets, people, and critical infrastructure. The company operates in a single business segment developing enterprise software used in design, construction, operations, and security. Geographically, it operates in Americas that includes the United States, and Other Americas (Canada, and Latin America); EMIA that includes Europe, Middle East, India, and Africa; and APAC that includes the Asia-Pacific region, excluding India. The company derives maximum revenue from Americas. Its products include: Octave Coda Spatial, Octave Alto Twin, Octave Coda, Octave Oncall, Octave Alto, Octave Imagine, Octave Oncall Dispatch, Octave Alto Lightspeed, and Others.
19GF Score
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