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Solitron DevicesSODI +1.85%66 Operating Margin % is 30.08% as of May. 2026, which is 317% above its 10-year median of 7.21. GuruFocus rates SODI with a GF Score™ of 66/100 and a GF Value™ of $28.20 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,023 Semiconductors companies, Solitron Devices ranks better than 79.37% on this metric.
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.
Solitron Devices Operating Margin % Related Terms
Solitron Devices Operating Margin % Historical Data
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The historical data trend for Solitron Devices'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.
SODI vs RBCN, GSTX, SCIA: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Solitron Devices'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.
Solitron Devices Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Solitron Devices's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Solitron Devices'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.
Solitron Devices's Operating Margin % for the fiscal year that ended in Feb. 2026 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.
Solitron Devices (SODI) has a Operating Margin % of 30.08% as of May. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Solitron Devices and its competitors. This is 317% above median its historical median of 7.21. According to the industry distribution chart, Solitron Devices ranks #211 out of 1023 companies in the Semiconductors industry, placing it in the top 20.6%.
Is Solitron Devices' Operating Margin % too high?
Solitron Devices' current Operating Margin % of 30.08% is 317% above median its 10-year median of 7.21. The Semiconductors industry median Operating Margin % is 5.33. Solitron Devices' value of 30.08% is 464.4% above this industry median. Based on the distribution chart, Solitron Devices ranks #211 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Solitron Devices has a GF Score™ of 66/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Solitron Devices' Operating Margin % compare to RBCN and GSTX?
According to the Semiconductors industry distribution chart, Solitron Devices ranks #211 out of 1023 companies for Operating Margin %. This places Solitron Devices in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.33. Solitron Devices' value of 30.08% is 464.4% above this benchmark. While the company's 10-year median is 7.21 vs. the industry median of 5.33, Solitron Devices 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.33, based on 1,023 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. Solitron Devices's current Operating Margin % of 30.08% is 464.4% 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 Solitron Devices and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Solitron Devices's current Operating Margin % is 30.08%, which is 317% above median its own 10-year median of 7.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solitron Devices stock overvalued right now?
Based on GuruFocus' analysis, Solitron Devices (SODI) is currently considered Fairly Valued. The stock's GF Value™ is $28.20, compared to a current price of $30.35 — trading 7.6% above its estimated fair value. The current Operating Margin % is 30.08%, which is 317% above median its 10-year median of 7.21 and 464.4% above the Semiconductors industry median of 5.33. Solitron Devices' overall GF Score™ is 66/100 with 5 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 Solitron Devices (SODI), the current Operating Margin % is 30.08% as of May. 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 Solitron Devices (SODI) Overvalued in 2026?
Based on GuruFocus' analysis, Solitron Devices stock appears to be overvalued.
The current stock price of $30.35 is trading 7.6% above its estimated GF Value™ of $28.20.
GuruFocus considers Solitron Devices to be Fairly Valued.
Key valuation signals for SODI:
Operating Margin %: 30.08% (317% above median its 10-year median of 7.21)
GF Value™: $28.20 vs. price of $30.35 (7.6% above fair value)
Industry Position: 464.4% above the Semiconductors median (#211 of 1023)
No single metric tells the full story. See the SODI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Solitron Devices Inc designs, develops, manufactures, and markets solid-state semiconductor components and related devices mainly for the military and aerospace markets. The company also manufactures a large variety of bipolar and metal oxide semiconductor (MOS) power transistors, power and control hybrids, junction and power MOS field-effect transistors (Power MOSFETS), field-effect transistors, and other related products. The company derives the majority of its revenues from its business operations in the United States, while it also holds a presence in Canada, Latin America, Europe and Australia.
66GF Score
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