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Observit ABOSTO:OBSE +4.76%33 Operating Margin % is 2.89% as of Mar. 2026, which is 20% below its 10-year median of 3.63. GuruFocus rates OSTO:OBSE with a GF Score™ of 33/100 and a GF Value™ of kr0.40 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,825 Software companies, Observit AB ranks worse than 52.57% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Observit AB's Operating Income for the
three
months ended in Mar. 2026 was kr0.41 Mil. Observit AB's Revenue for the
three
months ended in Mar. 2026 was kr14.08 Mil. Therefore, Observit AB's Operating Margin % for the quarter that ended in Mar. 2026 was 2.89%.
The historical rank and industry rank for Observit AB's Operating Margin % or its related term are showing as below:
OSTO:OBSE'
s Operating Margin % Range Over the Past 10 Years
Min: -0.11 Med: 3.63 Max: 20.93
Current: 3.18
OSTO:OBSE's Operating Margin % is ranked worse than 52.57% of 2825
companies
in the Software industry
Industry Median: 3.94
vs OSTO:OBSE: 3.18
Observit AB's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Observit AB's Operating Income for the
three
months ended in Mar. 2026 was kr0.41 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was kr1.92 Mil.
Observit AB (OSTO:OBSE) 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.
Observit AB Operating Margin % Related Terms
Observit AB Operating Margin % Historical Data
* Premium members only.
The historical data trend for Observit 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:OBSE vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Observit 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.
Observit AB Operating Margin % vs Software Industry
For the Software industry and Technology sector, Observit AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Observit 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.
Observit 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.
Observit AB (OSTO:OBSE) has a Operating Margin % of 2.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Observit AB and its competitors. This is 20% below median its historical median of 3.63. According to the industry distribution chart, Observit AB ranks #1485 out of 2825 companies in the Software industry, placing it in the top 52.6%.
Is Observit AB's Operating Margin % too high?
Observit AB's current Operating Margin % of 2.89% is 20% below median its 10-year median of 3.63. The Software industry median Operating Margin % is 3.94. Observit AB's value of 2.89% is 26.6% below this industry median. Based on the distribution chart, Observit AB ranks #1485 out of 2825 companies in the Software industry, which is below the industry midpoint. Overall, Observit AB has a GF Score™ of 33/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Observit AB's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Observit AB ranks #1485 out of 2825 companies for Operating Margin %. This places Observit AB in the lower half of its industry. The industry median Operating Margin % is 3.94. Observit AB's value of 2.89% is 26.6% below this benchmark. While the company's 10-year median is 3.63 vs. the industry median of 3.94, Observit AB 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 3.94, based on 2,825 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. Observit AB's current Operating Margin % of 2.89% is 26.6% 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 Observit AB and its competitors. For the Software industry, the median Operating Margin % is 3.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Observit AB's current Operating Margin % is 2.89%, which is 20% below median its own 10-year median of 3.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Observit AB stock overvalued right now?
Based on GuruFocus' analysis, Observit AB (OSTO:OBSE) is currently considered Significantly Overvalued. The stock's GF Value™ is kr0.40, compared to a current price of kr0.66 — trading 65% above its estimated fair value. The current Operating Margin % is 2.89%, which is 20% below median its 10-year median of 3.63 and 26.6% below the Software industry median of 3.94. Observit AB's overall GF Score™ is 33/100 with 6 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 Observit AB (OSTO:OBSE), the current Operating Margin % is 2.89% 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 Observit AB (OSTO:OBSE) Overvalued in 2026?
Based on GuruFocus' analysis, Observit AB stock appears to be overvalued.
The current stock price of kr0.66 is trading 65% above its estimated GF Value™ of kr0.40.
GuruFocus considers Observit AB to be Significantly Overvalued.
Key valuation signals for OSTO:OBSE:
Operating Margin %: 2.89% (20% below median its 10-year median of 3.63)
GF Value™: kr0.40 vs. price of kr0.66 (65% above fair value)
Industry Position: 26.6% below the Software median (#1485 of 2825)
No single metric tells the full story. See the OSTO:OBSE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Observit AB is the market leader in the Nordics when it comes to mobile video surveillance in public transport. The company provides software as a cloud service, and a Software as a Service (SaaS) solution, and currently has approximately 38,000 licenses (one license per security camera) connected globally. The customer base includes bus operators such as Nobina, Keolis, and Arriva and other transport-heavy customers such as Elis. Observit wants to become the brand for mobile video solutions in the transport sector.
33GF Score
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