Aero Lab International Inc has recorded a loss in operating income at least once over the past 3 years.
Aero Lab International (TSE:326A) 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.
Aero Lab International Operating Margin % Related Terms
Aero Lab International Operating Margin % Historical Data
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The historical data trend for Aero Lab International'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:326A vs GE, RTX, BA: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Aero Lab International'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.
Aero Lab International Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Aero Lab International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aero Lab International's Operating Margin % falls into.
Aero Lab International Operating Margin % Calculation
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.
Aero Lab International'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.
Aero Lab International (TSE:326A) has a Operating Margin % of 1.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Aero Lab International and its competitors. This is 29% below median its historical median of 2.07.
Is Aero Lab International's Operating Margin % too high?
Aero Lab International's current Operating Margin % of 1.46% is 29% below median its 10-year median of 2.07. The Aerospace & Defense industry median Operating Margin % is 7.58. Aero Lab International's value of 1.46% is 80.7% below this industry median. Overall, Aero Lab International has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Aero Lab International's Operating Margin % compare to GE and RTX?
Aero Lab International's Operating Margin % of 1.46% can be compared against companies in the Aerospace & Defense industry. The industry median Operating Margin % is 7.58. Aero Lab International's value of 1.46% is 80.7% below this benchmark. While the company's 10-year median is 2.07 vs. the industry median of 7.58, Aero Lab International has consistently been below 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 Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.58, based on 350 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. Aero Lab International's current Operating Margin % of 1.46% is 80.7% below 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 Aero Lab International and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aero Lab International's current Operating Margin % is 1.46%, which is 29% below median its own 10-year median of 2.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aero Lab International stock overvalued right now?
Aero Lab International (TSE:326A) has a current Operating Margin % of 1.46%. The current Operating Margin % is 1.46%, which is 29% below median its 10-year median of 2.07 and 80.7% below the Aerospace & Defense industry median of 7.58. Aero Lab International's overall GF Score™ is 17/100 with 2 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 Aero Lab International (TSE:326A), the current Operating Margin % is 1.46% 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.
Aero Lab International Inc engaged in Aircraft sales and related business. Its business also include Repair, maintenance and sales of small aircraft, Management, transportation, import and export and Merchandise sales and planning.
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