Smartoptics Group ASASMOPF -3.01%89 Operating Margin % is 7.90% as of Mar. 2026, which is 12% below its 10-year median of 9.01. GuruFocus rates SMOPF with a GF Score™ of 89/100 and a GF Value™ of $3.04 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 2,476 Hardware companies, Smartoptics Group ASA ranks better than 74.23% on this metric.
Smartoptics Group ASA (OTCPK:SMOPF) 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.
Smartoptics Group ASA Operating Margin % Related Terms
Smartoptics Group ASA Operating Margin % Historical Data
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The historical data trend for Smartoptics Group ASA'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.
SMOPF vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Smartoptics Group ASA'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.
Smartoptics Group ASA Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Smartoptics Group ASA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Smartoptics Group ASA's Operating Margin % falls into.
Smartoptics Group ASA 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.
Smartoptics Group ASA'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.
Smartoptics Group ASA (SMOPF) has a Operating Margin % of 7.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Smartoptics Group ASA and its competitors. This is 12% below median its historical median of 9.01. Over the past decade, Smartoptics Group ASA's Operating Margin % has ranged from 3.13 to 16.21. According to the industry distribution chart, Smartoptics Group ASA ranks #638 out of 2476 companies in the Hardware industry, placing it in the top 25.8%.
Is Smartoptics Group ASA's Operating Margin % too high?
Smartoptics Group ASA's current Operating Margin % of 7.90% is 12% below median its 10-year median of 9.01. Over the past 10 years, this metric has ranged from a low of 3.13 to a high of 16.21. The Hardware industry median Operating Margin % is 3.80. Smartoptics Group ASA's value of 7.90% is 108.2% above this industry median. Based on the distribution chart, Smartoptics Group ASA ranks #638 out of 2476 companies in the Hardware industry, which is above the industry midpoint. Overall, Smartoptics Group ASA has a GF Score™ of 89/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smartoptics Group ASA's Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Smartoptics Group ASA ranks #638 out of 2476 companies for Operating Margin %. This puts Smartoptics Group ASA in the upper half of its industry. The industry median Operating Margin % is 3.80. Smartoptics Group ASA's value of 7.90% is 108.2% above this benchmark. Historically, Smartoptics Group ASA's own Operating Margin % has ranged from 3.13 to 16.21 over the past decade. While the company's 10-year median is 9.01 vs. the industry median of 3.80, Smartoptics Group ASA 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,476 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. Smartoptics Group ASA's current Operating Margin % of 7.90% is 108.2% 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 Smartoptics Group ASA and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smartoptics Group ASA's current Operating Margin % is 7.90%, which is 12% below median its own 10-year median of 9.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smartoptics Group ASA stock overvalued right now?
Based on GuruFocus' analysis, Smartoptics Group ASA (SMOPF) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.04, compared to a current price of $5.00 — trading 64.3% above its estimated fair value. The current Operating Margin % is 7.90%, which is 12% below median its 10-year median of 9.01 and 108.2% above the Hardware industry median of 3.80. Smartoptics Group ASA's overall GF Score™ is 89/100 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 Smartoptics Group ASA (SMOPF), the current Operating Margin % is 7.90% 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 Smartoptics Group ASA (SMOPF) Overvalued in 2026?
Based on GuruFocus' analysis, Smartoptics Group ASA stock appears to be overvalued.
The current stock price of $5.00 is trading 64.3% above its estimated GF Value™ of $3.04.
GuruFocus considers Smartoptics Group ASA to be Significantly Overvalued.
Key valuation signals for SMOPF:
Operating Margin %: 7.90% (12% below median its 10-year median of 9.01)
GF Value™: $3.04 vs. price of $5.00 (64.3% above fair value)
Industry Position: 108.2% above the Hardware median (#638 of 2476)
No single metric tells the full story. See the SMOPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smartoptics Group ASA provides optical networking solutions and devices for open networking. The company has three main product categories: Solutions, Optical Devices, and Software & Services. These products are used to construct various Enterprise, Governmental, DCI, Metro, and Regional networks. The Solutions consist of the DCP-R family, DCP-F family, DCP-M family, transponders, and Muxponders, as well as transceivers used in connection with the System projects. Optical devices consist of transceivers, passive filters, and accessories that are sold independently of products in the Solutions offering. Software and Services are closely related to Solutions, as customers buy a complete solution including a Software and Services package. Geographically works in America, EMEA, and APAC.
89GF Score
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