Operating Margin % is calculated as Operating Income divided by its Revenue. OPT Sciences's Operating Income for the
three
months ended in Jul. 2015 was $0.58 Mil. OPT Sciences's Revenue for the
three
months ended in Jul. 2015 was $1.98 Mil. Therefore, OPT Sciences's Operating Margin % for the quarter that ended in Jul. 2015 was 29.22%.
The historical rank and industry rank for OPT Sciences's Operating Margin % or its related term are showing as below:
OPST's Operating Margin % is not ranked *
in the Aerospace & Defense industry.
Industry Median: 7.75 * Ranked among companies with meaningful Operating Margin % only.
OPT Sciences's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
OPT Sciences's Operating Income for the
three
months ended in Jul. 2015 was $0.58 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2015 was $2.01 Mil.
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.
OPT Sciences Operating Margin % Related Terms
OPT Sciences Operating Margin % Historical Data
* Premium members only.
The historical data trend for OPT Sciences'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.
OPST vs SDEV, SIF, OPXS: Operating Margin % Comparison
For the Aerospace & Defense subindustry, OPT Sciences'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.
OPT Sciences Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, OPT Sciences's Operating Margin % distribution charts can be found below:
* The bar in red indicates where OPT Sciences'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.
OPT Sciences's Operating Margin % for the fiscal year that ended in Oct. 2014 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.
OPT Sciences (OPST) has a Operating Margin % of 29.22% as of Jul. 2015. Operating margin is the ratio of total operating income to net sales. View historical data on OPT Sciences and its competitors.
Is OPT Sciences' Operating Margin % too high?
OPT Sciences' current Operating Margin % is 29.22%. The Aerospace & Defense industry median Operating Margin % is 7.75. OPT Sciences' value of 29.22% is 277% above this industry median.
How does OPT Sciences' Operating Margin % compare to SDEV and SIF?
OPT Sciences' Operating Margin % of 29.22% can be compared against companies in the Aerospace & Defense industry. The industry median Operating Margin % is 7.75. OPT Sciences' value of 29.22% is 277% 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 an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 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. OPT Sciences's current Operating Margin % of 29.22% is 277% 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 OPT Sciences and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OPT Sciences's current Operating Margin % is 29.22%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OPT Sciences stock overvalued right now?
OPT Sciences (OPST) has a current Operating Margin % of 29.22%. The current Operating Margin % is 29.22% and 277% above the Aerospace & Defense industry median of 7.75. 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 OPT Sciences (OPST), the current Operating Margin % is 29.22% as of Jul. 2015. 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.
OPT Sciences Corp through its operating subsidiary O & S Research, manufactures precision optical components for the Aerospace Industry. It provides anti-glare optical coatings, panels for liquid crystal displays ("LCD"), LCD glass heaters, and electromagnetic interference shielding glass. In addition, it also offers glass cutting, grinding, and painting services. Geographically, the activities are performed in the United States and it derives revenue from product sales when products are shipped to customers.
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