Soliton Systems KKSYKKF 74 Operating Margin % is 16.75% as of Dec. 2025, which is 57% above its 10-year median of 10.65. GuruFocus rates SYKKF with a GF Score™ of 74/100 and a GF Value™ of $5.66. The stock has 5 warning signs investors should review. Among 2,820 Software companies, Soliton Systems KK ranks better than 81.77% on this metric.
Soliton Systems KK (OTCPK:SYKKF) 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.
Soliton Systems KK Operating Margin % Related Terms
Soliton Systems KK Operating Margin % Historical Data
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The historical data trend for Soliton Systems KK'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.
SYKKF vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Soliton Systems KK'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.
Soliton Systems KK Operating Margin % vs Software Industry
For the Software industry and Technology sector, Soliton Systems KK's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Soliton Systems KK'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.
Soliton Systems KK'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.
Soliton Systems KK (SYKKF) has a Operating Margin % of 16.75% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Soliton Systems KK and its competitors. This is 57% above median its historical median of 10.65. Over the past decade, Soliton Systems KK's Operating Margin % has ranged from 6.95 to 15.53. According to the industry distribution chart, Soliton Systems KK ranks #514 out of 2820 companies in the Software industry, placing it in the top 18.2%.
Is Soliton Systems KK's Operating Margin % too high?
Soliton Systems KK's current Operating Margin % of 16.75% is 57% above median its 10-year median of 10.65. Over the past 10 years, this metric has ranged from a low of 6.95 to a high of 15.53. The Software industry median Operating Margin % is 3.87. Soliton Systems KK's value of 16.75% is 333.4% above this industry median. Based on the distribution chart, Soliton Systems KK ranks #514 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Soliton Systems KK has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Soliton Systems KK's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Soliton Systems KK ranks #514 out of 2820 companies for Operating Margin %. This places Soliton Systems KK in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Soliton Systems KK's value of 16.75% is 333.4% above this benchmark. Historically, Soliton Systems KK's own Operating Margin % has ranged from 6.95 to 15.53 over the past decade. While the company's 10-year median is 10.65 vs. the industry median of 3.87, Soliton Systems KK 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 3.87, based on 2,820 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. Soliton Systems KK's current Operating Margin % of 16.75% is 333.4% 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 Soliton Systems KK and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Soliton Systems KK's current Operating Margin % is 16.75%, which is 57% above median its own 10-year median of 10.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Soliton Systems KK stock overvalued right now?
Soliton Systems KK (SYKKF) has a current Operating Margin % of 16.75%. The stock's GF Value™ is $5.66, compared to a current price of $8.75 — trading 54.6% above its estimated fair value. The current Operating Margin % is 16.75%, which is 57% above median its 10-year median of 10.65 and 333.4% above the Software industry median of 3.87. Soliton Systems KK's overall GF Score™ is 74/100 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 Soliton Systems KK (SYKKF), the current Operating Margin % is 16.75% 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 Soliton Systems KK (SYKKF) Overvalued in 2026?
Based on GuruFocus' analysis, Soliton Systems KK stock appears to be overvalued.
The current stock price of $8.75 is trading 54.6% above its estimated GF Value™ of $5.66.
Key valuation signals for SYKKF:
Operating Margin %: 16.75% (57% above median its 10-year median of 10.65)
GF Value™: $5.66 vs. price of $8.75 (54.6% above fair value)
Industry Position: 333.4% above the Software median (#514 of 2820)
No single metric tells the full story. See the SYKKF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Soliton Systems KK is engaged in IT security business, Video communication business, and Eco-device business. The IT security business involves the development and sale of products such as information leakage countermeasure, login authentication by electronic certificate, big data recording, cybersecurity measures, enterprise cloud service, and enterprise network integration. The Video communication business involves development and sales of "Smart-telecaster", a high-quality real-time image transmission system using mobile lines and Eco-device business engages in the development and sales of analog / digital mixed semiconductor devices and embedded systems.
74GF Score
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