Devolver Digital (STU:8CO) 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.
Devolver Digital Operating Margin % Related Terms
Devolver Digital Operating Margin % Historical Data
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The historical data trend for Devolver Digital'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:8CO vs NTES, EA, TTWO: Operating Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Devolver Digital'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.
Devolver Digital Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Devolver Digital's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Devolver Digital'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.
Devolver Digital'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.
Devolver Digital (STU:8CO) has a Operating Margin % of 1.90% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Devolver Digital and its competitors. According to the industry distribution chart, Devolver Digital ranks #352 out of 553 companies in the Interactive Media industry, placing it in the top 63.7%.
Is Devolver Digital's Operating Margin % too high?
Devolver Digital's current Operating Margin % is 1.90%. The Interactive Media industry median Operating Margin % is 2.99. Devolver Digital's value of 1.90% is 36.5% below this industry median. Based on the distribution chart, Devolver Digital ranks #352 out of 553 companies in the Interactive Media industry, which is below the industry midpoint. Overall, Devolver Digital has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Devolver Digital's Operating Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Devolver Digital ranks #352 out of 553 companies for Operating Margin %. This places Devolver Digital in the lower half of its industry. The industry median Operating Margin % is 2.99. Devolver Digital's value of 1.90% is 36.5% below this benchmark. 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 an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.99, based on 553 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. Devolver Digital's current Operating Margin % of 1.90% is 36.5% below 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 Devolver Digital and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Devolver Digital's current Operating Margin % is 1.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Devolver Digital stock overvalued right now?
Based on GuruFocus' analysis, Devolver Digital (STU:8CO) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.23, compared to a current price of €0.18 — trading 20.4% below its estimated fair value. The current Operating Margin % is 1.90% and 36.5% below the Interactive Media industry median of 2.99. Devolver Digital's overall GF Score™ is 42/100 with 3 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 Devolver Digital (STU:8CO), the current Operating Margin % is 1.90% as of Dec. 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 Devolver Digital (STU:8CO) Overvalued in 2026?
Based on GuruFocus' analysis, Devolver Digital stock appears to be undervalued.
The current stock price of €0.18 is trading 20.4% below its estimated GF Value™ of €0.23.
GuruFocus considers Devolver Digital to be Modestly Undervalued.
Key valuation signals for STU:8CO:
Operating Margin %: 1.90%
GF Value™: €0.23 vs. price of €0.18 (20.4% below fair value)
Industry Position: 36.5% below the Interactive Media median (#352 of 553)
No single metric tells the full story. See the STU:8CO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Devolver Digital Inc is engaged in the business of developing video games. Some of its games include Look Outside, Shotgun Cop Man, Forestrike, Minos, Shroom and Gloom, and others. The company operates in the USA, Croatia, the UK, the Netherlands, and Poland.
42GF Score
Get the complete analysis for STU:8CO
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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