Digital TurbineSTU:4MD +2.01%51 Operating Margin % is 7.38% as of Mar. 2026, which is 58% above its 10-year median of 4.68. GuruFocus rates STU:4MD with a GF Score™ of 51/100 and a GF Value™ of €3.80 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,818 Software companies, Digital Turbine ranks better than 56.85% on this metric.
Digital Turbine (STU:4MD) 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.
Digital Turbine Operating Margin % Related Terms
Digital Turbine Operating Margin % Historical Data
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The historical data trend for Digital Turbine'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.
STU:4MD vs AMPL, UPBD, DFIN: Operating Margin % Comparison
For the Software - Application subindustry, Digital Turbine'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.
Digital Turbine Operating Margin % vs Software Industry
For the Software industry and Technology sector, Digital Turbine's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Digital Turbine'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.
Digital Turbine's Operating Margin % for the fiscal year that ended in Mar. 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.
Digital Turbine (STU:4MD) has a Operating Margin % of 7.38% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Digital Turbine and its competitors. This is 58% above median its historical median of 4.68. According to the industry distribution chart, Digital Turbine ranks #1216 out of 2818 companies in the Software industry, placing it in the top 43.2%.
Is Digital Turbine's Operating Margin % too high?
Digital Turbine's current Operating Margin % of 7.38% is 58% above median its 10-year median of 4.68. The Software industry median Operating Margin % is 3.88. Digital Turbine's value of 7.38% is 90.5% above this industry median. Based on the distribution chart, Digital Turbine ranks #1216 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, Digital Turbine has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Digital Turbine's Operating Margin % compare to AMPL and UPBD?
According to the Software industry distribution chart, Digital Turbine ranks #1216 out of 2818 companies for Operating Margin %. This puts Digital Turbine in the upper half of its industry. The industry median Operating Margin % is 3.88. Digital Turbine's value of 7.38% is 90.5% above this benchmark. While the company's 10-year median is 4.68 vs. the industry median of 3.88, Digital Turbine 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 2,818 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. Digital Turbine's current Operating Margin % of 7.38% is 90.5% 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 Digital Turbine 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. Digital Turbine's current Operating Margin % is 7.38%, which is 58% above median its own 10-year median of 4.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digital Turbine stock overvalued right now?
Based on GuruFocus' analysis, Digital Turbine (STU:4MD) is currently considered Significantly Overvalued. The stock's GF Value™ is €3.80, compared to a current price of €8.14 — trading 114.2% above its estimated fair value. The current Operating Margin % is 7.38%, which is 58% above median its 10-year median of 4.68 and 90.5% above the Software industry median of 3.88. Digital Turbine's overall GF Score™ is 51/100 with 6 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 Digital Turbine (STU:4MD), the current Operating Margin % is 7.38% 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 Digital Turbine (STU:4MD) Overvalued in 2026?
Based on GuruFocus' analysis, Digital Turbine stock appears to be overvalued.
The current stock price of €8.14 is trading 114.2% above its estimated GF Value™ of €3.80.
GuruFocus considers Digital Turbine to be Significantly Overvalued.
Key valuation signals for STU:4MD:
Operating Margin %: 7.38% (58% above median its 10-year median of 4.68)
GF Value™: €3.80 vs. price of €8.14 (114.2% above fair value)
Industry Position: 90.5% above the Software median (#1216 of 2818)
No single metric tells the full story. See the STU:4MD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Digital Turbine Inc is an independent mobile growth platform that levels up the landscape for advertisers, publishers, carriers, and device original equipment manufacturers. The Company offers end-to-end products and solutions leveraging proprietary technology to all participants in the mobile application ecosystem, enabling brand discovery and advertising, user acquisition and engagement, and operational efficiency for advertisers. In addition, its products and solutions provide monetization opportunities for OEMs, carriers, and application (app or apps) publishers and developers.
51GF Score
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