GRAVITY CoSTU:GD8A +6.09%74 Operating Margin % is 19.05% as of Mar. 2026, which is 21% above its 10-year median of 15.78. GuruFocus rates STU:GD8A with a GF Score™ of 74/100 and a GF Value™ of €55.66 (Fairly Valued). The stock has 4 warning signs investors should review. Among 553 Interactive Media companies, GRAVITY Co ranks better than 71.97% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. GRAVITY Co's Operating Income for the
three
months ended in Mar. 2026 was €17.9 Mil. GRAVITY Co's Revenue for the
three
months ended in Mar. 2026 was €93.9 Mil. Therefore, GRAVITY Co's Operating Margin % for the quarter that ended in Mar. 2026 was 19.05%.
Warning Sign:
GRAVITY Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.6%.
The historical rank and industry rank for GRAVITY Co's Operating Margin % or its related term are showing as below:
STU:GD8A'
s Operating Margin % Range Over the Past 10 Years
Min: 7.51 Med: 15.78 Max: 23.57
Current: 14.6
STU:GD8A's Operating Margin % is ranked better than 71.97% of 553
companies
in the Interactive Media industry
Industry Median: 2.99
vs STU:GD8A: 14.60
GRAVITY Co's 5-Year Average Operating Margin % Growth Rate was -8.60% per year.
GRAVITY Co's Operating Income for the
three
months ended in Mar. 2026 was €17.9 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €51.6 Mil.
GRAVITY Co (STU:GD8A) 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.
GRAVITY Co Operating Margin % Related Terms
GRAVITY Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for GRAVITY Co'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:GD8A vs SOHU, DDI, GDEV: Operating Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, GRAVITY Co'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.
GRAVITY Co Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, GRAVITY Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where GRAVITY Co'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.
GRAVITY Co'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.
GRAVITY Co (STU:GD8A) has a Operating Margin % of 19.05% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on GRAVITY Co and its competitors. This is 21% above median its historical median of 15.78. Over the past decade, GRAVITY Co's Operating Margin % has ranged from 7.51 to 23.57. According to the industry distribution chart, GRAVITY Co ranks #155 out of 553 companies in the Interactive Media industry, placing it in the top 28%.
Is GRAVITY Co's Operating Margin % too high?
GRAVITY Co's current Operating Margin % of 19.05% is 21% above median its 10-year median of 15.78. Over the past 10 years, this metric has ranged from a low of 7.51 to a high of 23.57. The Interactive Media industry median Operating Margin % is 2.99. GRAVITY Co's value of 19.05% is 537.1% above this industry median. Based on the distribution chart, GRAVITY Co ranks #155 out of 553 companies in the Interactive Media industry, which is above the industry midpoint. Overall, GRAVITY Co has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does GRAVITY Co's Operating Margin % compare to SOHU and DDI?
According to the Interactive Media industry distribution chart, GRAVITY Co ranks #155 out of 553 companies for Operating Margin %. This puts GRAVITY Co in the upper half of its industry. The industry median Operating Margin % is 2.99. GRAVITY Co's value of 19.05% is 537.1% above this benchmark. Historically, GRAVITY Co's own Operating Margin % has ranged from 7.51 to 23.57 over the past decade. While the company's 10-year median is 15.78 vs. the industry median of 2.99, GRAVITY Co 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 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. GRAVITY Co's current Operating Margin % of 19.05% is 537.1% 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 GRAVITY Co 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. GRAVITY Co's current Operating Margin % is 19.05%, which is 21% above median its own 10-year median of 15.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GRAVITY Co stock overvalued right now?
Based on GuruFocus' analysis, GRAVITY Co (STU:GD8A) is currently considered Fairly Valued. The stock's GF Value™ is €55.66, compared to a current price of €61.00 — trading 9.6% above its estimated fair value. The current Operating Margin % is 19.05%, which is 21% above median its 10-year median of 15.78 and 537.1% above the Interactive Media industry median of 2.99. GRAVITY Co's overall GF Score™ is 74/100 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 GRAVITY Co (STU:GD8A), the current Operating Margin % is 19.05% 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 GRAVITY Co (STU:GD8A) Overvalued in 2026?
Based on GuruFocus' analysis, GRAVITY Co stock appears to be overvalued.
The current stock price of €61.00 is trading 9.6% above its estimated GF Value™ of €55.66.
GuruFocus considers GRAVITY Co to be Fairly Valued.
Key valuation signals for STU:GD8A:
Operating Margin %: 19.05% (21% above median its 10-year median of 15.78)
GF Value™: €55.66 vs. price of €61.00 (9.6% above fair value)
Industry Position: 537.1% above the Interactive Media median (#155 of 553)
No single metric tells the full story. See the STU:GD8A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GRAVITY Co Ltd is an online and mobile games developer and publisher based in Korea. The gaming products of the company include Ragnarok Online, Requiem, Dragonica (Dragon Saga), Ragnarok Online II, Requiem Online, and R.O.S.E. Online. The company generates revenue from online games, mobile games and other sources including character based merchandise and animation. Geographically, it derives maximum revenue from Taiwan.
74GF Score
Get the complete analysis for STU:GD8A
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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