Info-Tech SystemsSGX:ITS +0.56%21 Operating Margin % is 37.14% as of Dec. 2025, which is 10% above its 10-year median of 33.82. GuruFocus rates SGX:ITS with a GF Score™ of 21/100. The stock has 1 warning sign investors should review. Among 2,812 Software companies, Info-Tech Systems ranks better than 96.16% on this metric.
Info-Tech Systems (SGX:ITS) 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.
Info-Tech Systems Operating Margin % Related Terms
Info-Tech Systems Operating Margin % Historical Data
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The historical data trend for Info-Tech Systems'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.
SGX:ITS vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, Info-Tech Systems'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.
Info-Tech Systems Operating Margin % vs Software Industry
For the Software industry and Technology sector, Info-Tech Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Info-Tech Systems'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.
Info-Tech Systems'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.
Info-Tech Systems (SGX:ITS) has a Operating Margin % of 37.14% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Info-Tech Systems and its competitors. This is 10% above median its historical median of 33.82. Over the past decade, Info-Tech Systems' Operating Margin % has ranged from 30.85 to 34.77. According to the industry distribution chart, Info-Tech Systems ranks #108 out of 2812 companies in the Software industry, placing it in the top 3.8%.
Is Info-Tech Systems' Operating Margin % too high?
Info-Tech Systems' current Operating Margin % of 37.14% is 10% above median its 10-year median of 33.82. Over the past 10 years, this metric has ranged from a low of 30.85 to a high of 34.77. The Software industry median Operating Margin % is 3.88. Info-Tech Systems' value of 37.14% is 858.5% above this industry median. Based on the distribution chart, Info-Tech Systems ranks #108 out of 2812 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Info-Tech Systems has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Info-Tech Systems' Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Info-Tech Systems ranks #108 out of 2812 companies for Operating Margin %. This places Info-Tech Systems in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Info-Tech Systems' value of 37.14% is 858.5% above this benchmark. Historically, Info-Tech Systems' own Operating Margin % has ranged from 30.85 to 34.77 over the past decade. While the company's 10-year median is 33.82 vs. the industry median of 3.88, Info-Tech Systems 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 3.88, based on 2,812 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. Info-Tech Systems's current Operating Margin % of 37.14% is 858.5% 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 Info-Tech Systems and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Info-Tech Systems's current Operating Margin % is 37.14%, which is 10% above median its own 10-year median of 33.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Info-Tech Systems stock overvalued right now?
Info-Tech Systems (SGX:ITS) has a current Operating Margin % of 37.14%. The current Operating Margin % is 37.14%, which is 10% above median its 10-year median of 33.82 and 858.5% above the Software industry median of 3.88. Info-Tech Systems' overall GF Score™ is 21/100 with 1 warning sign 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 Info-Tech Systems (SGX:ITS), the current Operating Margin % is 37.14% 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.
Info-Tech Systems Ltd is a one-stop Software-as-a-Service and digital solution provider for small and medium enterprises, delivering secure and scalable cloud-based business software that enables organisations to digitalise and streamline their operations. The principal activities of the Company include the sale of cloud-based human resource management software and accounting software, provision of related services and training, and the distribution of electronic security systems. Its reportable segment includes Subscription deriving maximum revenue, Services, and Hardware. It has two geographical segments Singapore and Malaysia of which majority of revenue comes from Singapore which is Sale of cloud-based HRMS and accounting software, provision of related services and training.
21GF Score
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