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.
Singapore Technologies Engineering Operating Margin % Related Terms
Singapore Technologies Engineering 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.
SGGKY vs GE, RTX, BA: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Singapore Technologies Engineering'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.
Singapore Technologies Engineering Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Singapore Technologies Engineering's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Singapore Technologies Engineering'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.
* 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.
Singapore Technologies Engineering (SGGKY) has a Operating Margin % of -1.53% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Singapore Technologies Engineering and its competitors. Over the past decade, Singapore Technologies Engineering's Operating Margin % has ranged from 3.38 to 8.92. According to the industry distribution chart, Singapore Technologies Engineering ranks #217 out of 347 companies in the Aerospace & Defense industry, placing it in the top 62.5%.
Is Singapore Technologies Engineering's Operating Margin % too high?
Singapore Technologies Engineering's current Operating Margin % is -1.53%. Over the past 10 years, this metric has ranged from a low of 3.38 to a high of 8.92. Based on the distribution chart, Singapore Technologies Engineering ranks #217 out of 347 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Singapore Technologies Engineering has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Singapore Technologies Engineering's Operating Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Singapore Technologies Engineering ranks #217 out of 347 companies for Operating Margin %. This places Singapore Technologies Engineering in the lower half of its industry. The industry median Operating Margin % is 7.75. Historically, Singapore Technologies Engineering's own Operating Margin % has ranged from 3.38 to 8.92 over the past decade. 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. 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 Singapore Technologies Engineering 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. Singapore Technologies Engineering's current Operating Margin % is -1.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Singapore Technologies Engineering stock overvalued right now?
Based on GuruFocus' analysis, Singapore Technologies Engineering (SGGKY) is currently considered Significantly Overvalued. The stock's GF Value™ is $42.51, compared to a current price of $85.00 — trading 100% above its estimated fair value. The current Operating Margin % is -1.53%. Singapore Technologies Engineering's overall GF Score™ is 69/100 with 11 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 Singapore Technologies Engineering (SGGKY), the current Operating Margin % is -1.53% as of Dec. 2025. 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 Singapore Technologies Engineering (SGGKY) Overvalued in 2026?
Based on GuruFocus' analysis, Singapore Technologies Engineering stock appears to be overvalued.
The current stock price of $85.00 is trading 100% above its estimated GF Value™ of $42.51.
GuruFocus considers Singapore Technologies Engineering to be Significantly Overvalued.
Key valuation signals for SGGKY:
Operating Margin %: -1.53%
GF Value™: $42.51 vs. price of $85.00 (100% above fair value)
No single metric tells the full story. See the SGGKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Singapore Technologies Engineering Business Description
ST Engineering is a Singaporean government-linked commercial and defense engineering group. Its key businesses include aircraft maintenance, repair and overhaul services, in which it is the world's largest independent third-party provider. The company's fastest-growing activities involve applications to defense and smart city solutions where it provides tolling solutions, traffic control systems, command and control dashboards, cybersecurity tools, and other related components. Around two thirds of the company's revenue comes from commercial clients while the remainder is defense.
69GF Score
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