Faber CompanyTSE:220A -0.54%21 Operating Margin % is 11.56% as of Mar. 2026, which is 21% below its 10-year median of 14.57. GuruFocus rates TSE:220A with a GF Score™ of 21/100. The stock has 1 warning sign investors should review. Among 2,820 Software companies, Faber Company ranks better than 75.43% on this metric.
Faber Company (TSE:220A) 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.
Faber Company Operating Margin % Related Terms
Faber Company Operating Margin % Historical Data
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The historical data trend for Faber Company'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.
TSE:220A vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Faber Company'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.
Faber Company Operating Margin % vs Software Industry
For the Software industry and Technology sector, Faber Company's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Faber Company'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.
Faber Company's Operating Margin % for the fiscal year that ended in Sep. 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.
Faber Company (TSE:220A) has a Operating Margin % of 11.56% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Faber Company and its competitors. This is 21% below median its historical median of 14.57. Over the past decade, Faber Company's Operating Margin % has ranged from 12.40 to 15.58. According to the industry distribution chart, Faber Company ranks #693 out of 2820 companies in the Software industry, placing it in the top 24.6%.
Is Faber Company's Operating Margin % too high?
Faber Company's current Operating Margin % of 11.56% is 21% below median its 10-year median of 14.57. Over the past 10 years, this metric has ranged from a low of 12.40 to a high of 15.58. The Software industry median Operating Margin % is 3.87. Faber Company's value of 11.56% is 199.1% above this industry median. Based on the distribution chart, Faber Company ranks #693 out of 2820 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Faber Company has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Faber Company's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Faber Company ranks #693 out of 2820 companies for Operating Margin %. This places Faber Company in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. Faber Company's value of 11.56% is 199.1% above this benchmark. Historically, Faber Company's own Operating Margin % has ranged from 12.40 to 15.58 over the past decade. While the company's 10-year median is 14.57 vs. the industry median of 3.87, Faber Company 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. Faber Company's current Operating Margin % of 11.56% is 199.1% 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 Faber Company 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. Faber Company's current Operating Margin % is 11.56%, which is 21% below median its own 10-year median of 14.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faber Company stock overvalued right now?
Faber Company (TSE:220A) has a current Operating Margin % of 11.56%. The current Operating Margin % is 11.56%, which is 21% below median its 10-year median of 14.57 and 199.1% above the Software industry median of 3.87. Faber Company's overall GF Score™ is 21/100 with 1 warning sign 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 Faber Company (TSE:220A), the current Operating Margin % is 11.56% 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.
Faber Company Inc is engaged in providing SaaS such as digital marketing automation tool "Mieruca SEO", and marketing support utilizing freelance human resources, etc.
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