Decibel Cannabis CoTSXV:DB 44 Operating Margin % is 9.88% as of Mar. 2026, which is 3559% above its 10-year median of 0.27. GuruFocus rates TSXV:DB with a GF Score™ of 44/100 and a GF Value™ of C$0.11 (Fairly Valued). The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Decibel Cannabis Co ranks worse than 62.09% on this metric.
Decibel Cannabis Co (TSXV:DB) 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.
Decibel Cannabis Co Operating Margin % Related Terms
Decibel Cannabis Co Operating Margin % Historical Data
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The historical data trend for Decibel Cannabis 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Decibel Cannabis 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.
Decibel Cannabis Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Decibel Cannabis Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Decibel Cannabis Co's Operating Margin % falls into.
Decibel Cannabis Co 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.
Decibel Cannabis 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.
Decibel Cannabis Co (TSXV:DB) has a Operating Margin % of 9.88% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Decibel Cannabis Co and its competitors. This is 3559% above median its historical median of 0.27. According to the industry distribution chart, Decibel Cannabis Co ranks #593 out of 955 companies in the Drug Manufacturers industry, placing it in the top 62.1%.
Is Decibel Cannabis Co's Operating Margin % too high?
Decibel Cannabis Co's current Operating Margin % of 9.88% is 3559% above median its 10-year median of 0.27. The Drug Manufacturers industry median Operating Margin % is 7.45. Decibel Cannabis Co's value of 9.88% is 32.6% above this industry median. Based on the distribution chart, Decibel Cannabis Co ranks #593 out of 955 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Decibel Cannabis Co has a GF Score™ of 44/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Decibel Cannabis Co's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Decibel Cannabis Co ranks #593 out of 955 companies for Operating Margin %. This places Decibel Cannabis Co in the lower half of its industry. The industry median Operating Margin % is 7.45. Decibel Cannabis Co's value of 9.88% is 32.6% above this benchmark. While the company's 10-year median is 0.27 vs. the industry median of 7.45, Decibel Cannabis 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 a Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Decibel Cannabis Co's current Operating Margin % of 9.88% is 32.6% 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 Decibel Cannabis Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Decibel Cannabis Co's current Operating Margin % is 9.88%, which is 3559% above median its own 10-year median of 0.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Decibel Cannabis Co stock overvalued right now?
Based on GuruFocus' analysis, Decibel Cannabis Co (TSXV:DB) is currently considered Fairly Valued. The stock's GF Value™ is C$0.11, compared to a current price of C$0.12 — trading 9.1% above its estimated fair value. The current Operating Margin % is 9.88%, which is 3559% above median its 10-year median of 0.27 and 32.6% above the Drug Manufacturers industry median of 7.45. Decibel Cannabis Co's overall GF Score™ is 44/100 with 6 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 Decibel Cannabis Co (TSXV:DB), the current Operating Margin % is 9.88% 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 Decibel Cannabis Co (TSXV:DB) Overvalued in 2026?
Based on GuruFocus' analysis, Decibel Cannabis Co stock appears to be overvalued.
The current stock price of C$0.12 is trading 9.1% above its estimated GF Value™ of C$0.11.
GuruFocus considers Decibel Cannabis Co to be Fairly Valued.
Key valuation signals for TSXV:DB:
Operating Margin %: 9.88% (3559% above median its 10-year median of 0.27)
GF Value™: C$0.11 vs. price of C$0.12 (9.1% above fair value)
Industry Position: 32.6% above the Drug Manufacturers median (#593 of 955)
No single metric tells the full story. See the TSXV:DB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Decibel Cannabis Co Inc is engaged in the cannabis operations business. The company is involved in the production, distribution, and sale of recreational cannabis. All the revenues are generated in Canada. The company's revenue is comprised of wholesale sales of both products and services through its production facilities to distributors and licensed cannabis producers and the direct sale of products through its retailer locations to end customers.
44GF Score
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