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.
Transact Technologies Operating Margin % Related Terms
Transact Technologies Operating Margin % Historical Data
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The historical data trend for Transact Technologies'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.
TACT vs KTCC, QCLS, YIBO: Operating Margin % Comparison
For the Computer Hardware subindustry, Transact Technologies'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.
Transact Technologies Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Transact Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Transact Technologies'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.
Transact Technologies'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.
Transact Technologies (TACT) has a Operating Margin % of 5.35% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Transact Technologies and its competitors. According to the industry distribution chart, Transact Technologies ranks #1748 out of 2471 companies in the Hardware industry, placing it in the top 70.7%.
Is Transact Technologies' Operating Margin % too high?
Transact Technologies' current Operating Margin % is 5.35%. The Hardware industry median Operating Margin % is 3.80. Transact Technologies' value of 5.35% is 40.8% above this industry median. Based on the distribution chart, Transact Technologies ranks #1748 out of 2471 companies in the Hardware industry, which is below the industry midpoint. Overall, Transact Technologies has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Transact Technologies' Operating Margin % compare to KTCC and QCLS?
According to the Hardware industry distribution chart, Transact Technologies ranks #1748 out of 2471 companies for Operating Margin %. This places Transact Technologies in the lower half of its industry. The industry median Operating Margin % is 3.80. Transact Technologies' value of 5.35% is 40.8% above 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 a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,471 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. Transact Technologies's current Operating Margin % of 5.35% is 40.8% 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 Transact Technologies and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Transact Technologies's current Operating Margin % is 5.35%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Transact Technologies stock overvalued right now?
Based on GuruFocus' analysis, Transact Technologies (TACT) is currently considered Modestly Overvalued. The stock's GF Value™ is $4.46, compared to a current price of $5.48 — trading 22.8% above its estimated fair value. The current Operating Margin % is 5.35% and 40.8% above the Hardware industry median of 3.80. Transact Technologies' overall GF Score™ is 69/100 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 Transact Technologies (TACT), the current Operating Margin % is 5.35% 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 Transact Technologies (TACT) Overvalued in 2026?
Based on GuruFocus' analysis, Transact Technologies stock appears to be overvalued.
The current stock price of $5.48 is trading 22.8% above its estimated GF Value™ of $4.46.
GuruFocus considers Transact Technologies to be Modestly Overvalued.
Key valuation signals for TACT:
Operating Margin %: 5.35%
GF Value™: $4.46 vs. price of $5.48 (22.8% above fair value)
Industry Position: 40.8% above the Hardware median (#1748 of 2471)
No single metric tells the full story. See the TACT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Transact Technologies Inc develops and sells software-driven technology and printing solutions. The company's software is sold under BOHA, AccuDate, Epic, EPICENTRAL, Ithaca, and Printrex brand names. It also provides supplies and consumables used in the printing and scanning activities to restaurant and hospitality, banking, retail, casino and gaming, point of sale automation, lottery, medical, mobile, oil, and gas markets. Majority of the revenue is derived from the casinos and gaming industry followed by the Foodservice technology market. Its geographical segments are the United States and International, of which the majority of its revenue comes from the United States.
69GF Score
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