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Sapiens International NV (NAS:SPNS) 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.
Sapiens International NV Operating Margin % Related Terms
Sapiens International NV 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.
SPNS vs ALKT, VIA, PLUS: Operating Margin % Comparison
For the Software - Application subindustry, Sapiens International NV'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.
Sapiens International NV Operating Margin % vs Software Industry
For the Software industry and Technology sector, Sapiens International NV's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sapiens International NV's Operating Margin % falls into.
Sapiens International NV 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.
Sapiens International NV's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Sapiens International NV (SPNS) has a Operating Margin % of 11.66% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sapiens International NV and its competitors. This is near median its historical median of 12.11. Over the past decade, Sapiens International NV's Operating Margin % has ranged from 0.37 to 15.83.
Is Sapiens International NV's Operating Margin % too high?
Sapiens International NV's current Operating Margin % of 11.66% is near median its 10-year median of 12.11. Over the past 10 years, this metric has ranged from a low of 0.37 to a high of 15.83. The Software industry median Operating Margin % is 3.90. Sapiens International NV's value of 11.66% is 199% above this industry median. Overall, Sapiens International NV has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does Sapiens International NV's Operating Margin % compare to ALKT and VIA?
Sapiens International NV's Operating Margin % of 11.66% can be compared against companies in the Software industry. The industry median Operating Margin % is 3.90. Sapiens International NV's value of 11.66% is 199% above this benchmark. Historically, Sapiens International NV's own Operating Margin % has ranged from 0.37 to 15.83 over the past decade. While the company's 10-year median is 12.11 vs. the industry median of 3.90, Sapiens International NV 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 3.90, based on 2,826 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. Sapiens International NV's current Operating Margin % of 11.66% is 199% 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 Sapiens International NV and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sapiens International NV's current Operating Margin % is 11.66%, which is near median its own 10-year median of 12.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sapiens International NV stock overvalued right now?
Sapiens International NV (SPNS) has a current Operating Margin % of 11.66%. The stock's GF Value™ is $31.47, compared to a current price of $43.45 — trading 38.1% above its estimated fair value. The current Operating Margin % is 11.66%, which is near median its 10-year median of 12.11 and 199% above the Software industry median of 3.90. Sapiens International NV's overall GF Score™ is 75/100 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 Sapiens International NV (SPNS), the current Operating Margin % is 11.66% as of Sep. 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 Sapiens International NV (SPNS) Overvalued in 2026?
Based on GuruFocus' analysis, Sapiens International NV stock appears to be overvalued.
The current stock price of $43.45 is trading 38.1% above its estimated GF Value™ of $31.47.
Key valuation signals for SPNS:
Operating Margin %: 11.66% (near median its 10-year median of 12.11)
GF Value™: $31.47 vs. price of $43.45 (38.1% above fair value)
No single metric tells the full story. See the SPNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sapiens International Corp NV is a provider of software solutions for the insurance industry, with an emerging focus on the financial services sector. The company offers software, solutions, and professional services for property & casualty (P&C); reinsurance; life, pension & annuity (L&A); workers' compensation (WC); medical professional liability (MPL); financial & compliance (F&C); and decision modeling for both insurance and financial markets. The group also provides services for project delivery and implementation services, for its Software Solutions portfolio. Geographically, it operates in the region of North America, Rest of the World, and Europe. It generates revenue from Europe.
75GF Score
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