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.
Sol-Gel Technologies Operating Margin % Related Terms
Sol-Gel Technologies Operating Margin % Historical Data
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The historical data trend for Sol-Gel Technologies'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.
SLGL vs ALEC, LENZ, CNXU: Operating Margin % Comparison
For the Biotechnology subindustry, Sol-Gel Technologies'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.
Sol-Gel Technologies Operating Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Sol-Gel Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sol-Gel Technologies'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.
Sol-Gel Technologies'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.
What does a Operating Margin % of -3,569.44% mean?
Sol-Gel Technologies (SLGL) has a Operating Margin % of -3,569.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sol-Gel Technologies and its competitors. According to the industry distribution chart, Sol-Gel Technologies ranks #332 out of 944 companies in the Biotechnology industry, placing it in the top 35.2%.
Is Sol-Gel Technologies' Operating Margin % too high?
Sol-Gel Technologies' current Operating Margin % is -3,569.44%. Based on the distribution chart, Sol-Gel Technologies ranks #332 out of 944 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Sol-Gel Technologies has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sol-Gel Technologies' Operating Margin % compare to ALEC and LENZ?
According to the Biotechnology industry distribution chart, Sol-Gel Technologies ranks #332 out of 944 companies for Operating Margin %. This puts Sol-Gel Technologies in the upper half of its industry. 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 Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. 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 Sol-Gel Technologies and its competitors. Sol-Gel Technologies's current Operating Margin % is -3,569.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sol-Gel Technologies stock overvalued right now?
Based on GuruFocus' analysis, Sol-Gel Technologies (SLGL) is currently considered Modestly Overvalued. The stock's GF Value™ is $65.37, compared to a current price of $73.50 — trading 12.4% above its estimated fair value. The current Operating Margin % is -3,569.44%. Sol-Gel Technologies' overall GF Score™ is 56/100 with 2 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 Sol-Gel Technologies (SLGL), the current Operating Margin % is -3,569.44% 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 Sol-Gel Technologies (SLGL) Overvalued in 2026?
Based on GuruFocus' analysis, Sol-Gel Technologies stock appears to be overvalued.
The current stock price of $73.50 is trading 12.4% above its estimated GF Value™ of $65.37.
GuruFocus considers Sol-Gel Technologies to be Modestly Overvalued.
Key valuation signals for SLGL:
Operating Margin %: -3,569.44%
GF Value™: $65.37 vs. price of $73.50 (12.4% above fair value)
No single metric tells the full story. See the SLGL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sol-Gel Technologies Ltd is a dermatology company. It is engaged in identifying, developing and commercializing branded and generic topical drug products for the treatment of skin diseases. The company's product candidate pipeline includes SGT-610 (Patidegib Gel 2%), a new chemical entity hedgehog signaling pathway blocker, for the chronic use and prevention of new BCC in Gorlin syndrome patients, and the topical drug candidate SGT-210 for the treatment of Darier Disease and other rare keratosis-related indications such as PC, PPK and Olmsted. It generates the majority of its revenue from the United States.
56GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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