Reservoir MediaRSVR -0.30%59 Operating Margin % is 24.78% as of Mar. 2026, which is 25% above its 10-year median of 19.86. GuruFocus rates RSVR with a GF Score™ of 59/100 and a GF Value™ of $8.76 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,023 Media - Diversified companies, Reservoir Media ranks better than 93.26% on this metric.
Reservoir Media (NAS:RSVR) 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.
Reservoir Media Operating Margin % Related Terms
Reservoir Media Operating Margin % Historical Data
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The historical data trend for Reservoir Media'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.
RSVR vs MCS, HUYA, ANGX: Operating Margin % Comparison
For the Entertainment subindustry, Reservoir Media'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.
Reservoir Media Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Reservoir Media's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Reservoir Media'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.
Reservoir Media's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Reservoir Media (RSVR) has a Operating Margin % of 24.78% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Reservoir Media and its competitors. This is 25% above median its historical median of 19.86. Over the past decade, Reservoir Media's Operating Margin % has ranged from 16.97 to 22.84. According to the industry distribution chart, Reservoir Media ranks #69 out of 1023 companies in the Media - Diversified industry, placing it in the top 6.7%.
Is Reservoir Media's Operating Margin % too high?
Reservoir Media's current Operating Margin % of 24.78% is 25% above median its 10-year median of 19.86. Over the past 10 years, this metric has ranged from a low of 16.97 to a high of 22.84. The Media - Diversified industry median Operating Margin % is 2.51. Reservoir Media's value of 24.78% is 887.3% above this industry median. Based on the distribution chart, Reservoir Media ranks #69 out of 1023 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Reservoir Media has a GF Score™ of 59/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Reservoir Media's Operating Margin % compare to MCS and HUYA?
According to the Media - Diversified industry distribution chart, Reservoir Media ranks #69 out of 1023 companies for Operating Margin %. This places Reservoir Media in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.51. Reservoir Media's value of 24.78% is 887.3% above this benchmark. Historically, Reservoir Media's own Operating Margin % has ranged from 16.97 to 22.84 over the past decade. While the company's 10-year median is 19.86 vs. the industry median of 2.51, Reservoir Media 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 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. Reservoir Media's current Operating Margin % of 24.78% is 887.3% 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 Reservoir Media and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reservoir Media's current Operating Margin % is 24.78%, which is 25% above median its own 10-year median of 19.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reservoir Media stock overvalued right now?
Based on GuruFocus' analysis, Reservoir Media (RSVR) is currently considered Modestly Overvalued. The stock's GF Value™ is $8.76, compared to a current price of $10.05 — trading 14.7% above its estimated fair value. The current Operating Margin % is 24.78%, which is 25% above median its 10-year median of 19.86 and 887.3% above the Media - Diversified industry median of 2.51. Reservoir Media's overall GF Score™ is 59/100 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 Reservoir Media (RSVR), the current Operating Margin % is 24.78% 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 Reservoir Media (RSVR) Overvalued in 2026?
Based on GuruFocus' analysis, Reservoir Media stock appears to be overvalued.
The current stock price of $10.05 is trading 14.7% above its estimated GF Value™ of $8.76.
GuruFocus considers Reservoir Media to be Modestly Overvalued.
Key valuation signals for RSVR:
Operating Margin %: 24.78% (25% above median its 10-year median of 19.86)
GF Value™: $8.76 vs. price of $10.05 (14.7% above fair value)
Industry Position: 887.3% above the Media - Diversified median (#69 of 1023)
No single metric tells the full story. See the RSVR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reservoir Media Inc is an independent music company. The company operates a music publishing business, a recorded music business, a management business, and a rights management entity in the Middle East. The company's segments include Music Publishing and Recorded Music. It generates the maximum of its revenue from the U.S. Music Publishing segment engaged in the acquisition of interests in music catalogs to earn royalties and signing songwriters to agreements of future delivery of songs. The Recorded Music segment involve the acquisition of sound recording catalogs and the discovery and development of recording artists and the marketing, distribution, sale and licensing of the music catalog.
59GF Score
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