Calnex SolutionsSTU:CSO 53 Operating Margin % is 15.24% as of Mar. 2026, which is 28% below its 10-year median of 21.15. GuruFocus rates STU:CSO with a GF Score™ of 53/100 and a GF Value™ of €0.70 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, Calnex Solutions ranks better than 55.3% 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.
Calnex Solutions Operating Margin % Related Terms
Calnex Solutions Operating Margin % Historical Data
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The historical data trend for Calnex Solutions'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:CSO vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Calnex Solutions'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.
Calnex Solutions Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Calnex Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Calnex Solutions'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.
Calnex Solutions'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.
Calnex Solutions (STU:CSO) has a Operating Margin % of 15.24% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Calnex Solutions and its competitors. This is 28% below median its historical median of 21.15. According to the industry distribution chart, Calnex Solutions ranks #1105 out of 2472 companies in the Hardware industry, placing it in the top 44.7%.
Is Calnex Solutions' Operating Margin % too high?
Calnex Solutions' current Operating Margin % of 15.24% is 28% below median its 10-year median of 21.15. The Hardware industry median Operating Margin % is 3.81. Calnex Solutions' value of 15.24% is 300% above this industry median. Based on the distribution chart, Calnex Solutions ranks #1105 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, Calnex Solutions has a GF Score™ of 53/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Calnex Solutions' Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Calnex Solutions ranks #1105 out of 2472 companies for Operating Margin %. This puts Calnex Solutions in the upper half of its industry. The industry median Operating Margin % is 3.81. Calnex Solutions' value of 15.24% is 300% above this benchmark. While the company's 10-year median is 21.15 vs. the industry median of 3.81, Calnex Solutions 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 3.81, based on 2,472 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. Calnex Solutions's current Operating Margin % of 15.24% is 300% 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 Calnex Solutions and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Calnex Solutions's current Operating Margin % is 15.24%, which is 28% below median its own 10-year median of 21.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Calnex Solutions stock overvalued right now?
Based on GuruFocus' analysis, Calnex Solutions (STU:CSO) is currently considered Fairly Valued. The stock's GF Value™ is €0.70, compared to a current price of €0.74 — trading 5.7% above its estimated fair value. The current Operating Margin % is 15.24%, which is 28% below median its 10-year median of 21.15 and 300% above the Hardware industry median of 3.81. Calnex Solutions' overall GF Score™ is 53/100 with 4 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 Calnex Solutions (STU:CSO), the current Operating Margin % is 15.24% 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 Calnex Solutions (STU:CSO) Overvalued in 2026?
Based on GuruFocus' analysis, Calnex Solutions stock appears to be overvalued.
The current stock price of €0.74 is trading 5.7% above its estimated GF Value™ of €0.70.
GuruFocus considers Calnex Solutions to be Fairly Valued.
Key valuation signals for STU:CSO:
Operating Margin %: 15.24% (28% below median its 10-year median of 21.15)
GF Value™: €0.70 vs. price of €0.74 (5.7% above fair value)
Industry Position: 300% above the Hardware median (#1105 of 2472)
No single metric tells the full story. See the STU:CSO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Calnex Solutions PLC is a provider of test and measurement solutions for the telecommunications sector. It designs, produces, and markets test instrumentation and solutions for network synchronization and network emulation. The company offers its equipment to network operators, network providers, systems suppliers, laboratories, and network infrastructures. The company operates in North Asia, Americas and Rest of the world, out of which it derives maximum revenue from Rest of the World.
53GF Score
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