Science Applications International (NAS:SAIC) 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.
Science Applications International Operating Margin % Related Terms
Science Applications International Operating Margin % Historical Data
* 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.
Science Applications International Operating Margin % Chart
SAIC vs EXLS, PONY, EPAM: Operating Margin % Comparison
For the Information Technology Services subindustry, Science Applications International'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.
Science Applications International Operating Margin % vs Software Industry
For the Software industry and Technology sector, Science Applications International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Science Applications International's Operating Margin % falls into.
Science Applications International Operating Margin % Calculation
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.
* 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.
Science Applications International (SAIC) has a Operating Margin % of 9.39% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Science Applications International and its competitors. This is 42% above median its historical median of 6.62. Over the past decade, Science Applications International's Operating Margin % has ranged from 5.75 to 7.94. According to the industry distribution chart, Science Applications International ranks #1024 out of 2818 companies in the Software industry, placing it in the top 36.3%.
Is Science Applications International's Operating Margin % too high?
Science Applications International's current Operating Margin % of 9.39% is 42% above median its 10-year median of 6.62. Over the past 10 years, this metric has ranged from a low of 5.75 to a high of 7.94. The Software industry median Operating Margin % is 3.87. Science Applications International's value of 9.39% is 142.9% above this industry median. Based on the distribution chart, Science Applications International ranks #1024 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Science Applications International has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Science Applications International's Operating Margin % compare to EXLS and PONY?
According to the Software industry distribution chart, Science Applications International ranks #1024 out of 2818 companies for Operating Margin %. This puts Science Applications International in the upper half of its industry. The industry median Operating Margin % is 3.87. Science Applications International's value of 9.39% is 142.9% above this benchmark. Historically, Science Applications International's own Operating Margin % has ranged from 5.75 to 7.94 over the past decade. While the company's 10-year median is 6.62 vs. the industry median of 3.87, Science Applications International 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 3.87, based on 2,818 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. Science Applications International's current Operating Margin % of 9.39% is 142.9% 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 Science Applications International and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Science Applications International's current Operating Margin % is 9.39%, which is 42% above median its own 10-year median of 6.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Science Applications International stock overvalued right now?
Based on GuruFocus' analysis, Science Applications International (SAIC) is currently considered Modestly Undervalued. The stock's GF Value™ is $126.94, compared to a current price of $108.47 — trading 14.6% below its estimated fair value. The current Operating Margin % is 9.39%, which is 42% above median its 10-year median of 6.62 and 142.9% above the Software industry median of 3.87. Science Applications International's overall GF Score™ is 79/100 with 4 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 Science Applications International (SAIC), the current Operating Margin % is 9.39% as of Apr. 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 Science Applications International (SAIC) Overvalued in 2026?
Based on GuruFocus' analysis, Science Applications International stock appears to be undervalued.
The current stock price of $108.47 is trading 14.6% below its estimated GF Value™ of $126.94.
GuruFocus considers Science Applications International to be Modestly Undervalued.
Key valuation signals for SAIC:
Operating Margin %: 9.39% (42% above median its 10-year median of 6.62)
GF Value™: $126.94 vs. price of $108.47 (14.6% below fair value)
Industry Position: 142.9% above the Software median (#1024 of 2818)
No single metric tells the full story. See the SAIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Science Applications International Business Description
Science Applications International Corp provides technical, engineering, and enterprise IT services mainly to the U.S. government. Specifically, it offers end-to-end solutions spanning the design, development, integration, deployment, management, operations, sustainment, and security of the customer's entire IT infrastructure. The company has two reportable segments, which include Defense and Intelligence and the Civilian segment. Maximum revenue is generated from its Defense and Intelligence segment, which provides a diverse portfolio of national security solutions to the DoW and the Intelligence Community of the United States Government. The Civilian segment provides solutions to the civilian markets, encompassing federal, state, and local governments.
79GF Score
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