Engcon ABOSTO:ENGCON B -2.28%82 Operating Margin % is 15.96% as of Mar. 2026, which is 19% below its 10-year median of 19.76. GuruFocus rates OSTO:ENGCON B with a GF Score™ of 82/100 and a GF Value™ of kr92.15 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 209 Farm & Heavy Construction Machinery companies, Engcon AB ranks better than 92.82% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Engcon AB's Operating Income for the
three
months ended in Mar. 2026 was kr86 Mil. Engcon AB's Revenue for the
three
months ended in Mar. 2026 was kr539 Mil. Therefore, Engcon AB's Operating Margin % for the quarter that ended in Mar. 2026 was 15.96%.
Warning Sign:
Engcon AB operating margin has been in a 5-year decline. The average rate of decline per year is -2.8%.
The historical rank and industry rank for Engcon AB's Operating Margin % or its related term are showing as below:
OSTO:ENGCON B'
s Operating Margin % Range Over the Past 10 Years
Min: 15.49 Med: 19.76 Max: 21.83
Current: 16.4
OSTO:ENGCON B's Operating Margin % is ranked better than 92.82% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs OSTO:ENGCON B: 16.40
Engcon AB's 5-Year Average Operating Margin % Growth Rate was -2.80% per year.
Engcon AB's Operating Income for the
three
months ended in Mar. 2026 was kr86 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was kr325 Mil.
Engcon AB (OSTO:ENGCON B) 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.
Engcon AB Operating Margin % Related Terms
Engcon AB Operating Margin % Historical Data
* Premium members only.
The historical data trend for Engcon AB'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.
OSTO:ENGCON B vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Engcon AB'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.
Engcon AB Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Engcon AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Engcon AB'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.
Engcon AB'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.
Engcon AB (OSTO:ENGCON B) has a Operating Margin % of 15.96% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Engcon AB and its competitors. This is 19% below median its historical median of 19.76. Over the past decade, Engcon AB's Operating Margin % has ranged from 15.49 to 21.83. According to the industry distribution chart, Engcon AB ranks #15 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 7.2%.
Is Engcon AB's Operating Margin % too high?
Engcon AB's current Operating Margin % of 15.96% is 19% below median its 10-year median of 19.76. Over the past 10 years, this metric has ranged from a low of 15.49 to a high of 21.83. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Engcon AB's value of 15.96% is 135.4% above this industry median. Based on the distribution chart, Engcon AB ranks #15 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is in the top quartile — a strong position relative to peers. Overall, Engcon AB has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Engcon AB's Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Engcon AB ranks #15 out of 209 companies for Operating Margin %. This places Engcon AB in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.78. Engcon AB's value of 15.96% is 135.4% above this benchmark. Historically, Engcon AB's own Operating Margin % has ranged from 15.49 to 21.83 over the past decade. While the company's 10-year median is 19.76 vs. the industry median of 6.78, Engcon AB 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 Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 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. Engcon AB's current Operating Margin % of 15.96% is 135.4% 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 Engcon AB and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Engcon AB's current Operating Margin % is 15.96%, which is 19% below median its own 10-year median of 19.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Engcon AB stock overvalued right now?
Based on GuruFocus' analysis, Engcon AB (OSTO:ENGCON B) is currently considered Significantly Undervalued. The stock's GF Value™ is kr92.15, compared to a current price of kr64.40 — trading 30.1% below its estimated fair value. The current Operating Margin % is 15.96%, which is 19% below median its 10-year median of 19.76 and 135.4% above the Farm & Heavy Construction Machinery industry median of 6.78. Engcon AB's overall GF Score™ is 82/100 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 Engcon AB (OSTO:ENGCON B), the current Operating Margin % is 15.96% 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 Engcon AB (OSTO:ENGCON B) Overvalued in 2026?
Based on GuruFocus' analysis, Engcon AB stock appears to be undervalued.
The current stock price of kr64.40 is trading 30.1% below its estimated GF Value™ of kr92.15.
GuruFocus considers Engcon AB to be Significantly Undervalued.
Key valuation signals for OSTO:ENGCON B:
Operating Margin %: 15.96% (19% below median its 10-year median of 19.76)
GF Value™: kr92.15 vs. price of kr64.40 (30.1% below fair value)
Industry Position: 135.4% above the Farm & Heavy Construction Machinery median (#15 of 209)
No single metric tells the full story. See the OSTO:ENGCON B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Engcon AB is engaged in the design, production, and sale of excavator tools. The firm's product includes Tiltrotators, Hydraulic and mechanical tools, Quick couplers, and Control systems. The company's sales are governed based on geographic region, which consists of the Nordic region (Sweden, Denmark, Norway, and Finland); Europe (excluding the Nordic region); the Americas (North America and South America); and Asia-Oceania (Japan, South Korea, Australia, New Zealand, and the rest of the world). Geographically, the company generates key revenue from the Nordic region and Europe.
82GF Score
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