Ubisoft Entertainment (OTCPK:UBSFY) 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.
Ubisoft Entertainment Operating Margin % Related Terms
Ubisoft Entertainment Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ubisoft Entertainment'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.
UBSFY vs NTES, EA, TTWO: Operating Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Ubisoft Entertainment'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.
Ubisoft Entertainment Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Ubisoft Entertainment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ubisoft Entertainment's Operating Margin % falls into.
Ubisoft Entertainment 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.
Ubisoft Entertainment'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.
Ubisoft Entertainment (UBSFY) has a Operating Margin % of -162.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ubisoft Entertainment and its competitors. According to the industry distribution chart, Ubisoft Entertainment ranks #497 out of 553 companies in the Interactive Media industry, placing it in the top 89.9%.
Is Ubisoft Entertainment's Operating Margin % too high?
Ubisoft Entertainment's current Operating Margin % is -162.94%. Based on the distribution chart, Ubisoft Entertainment ranks #497 out of 553 companies in the Interactive Media industry, which is in the bottom quartile relative to peers. Overall, Ubisoft Entertainment has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Ubisoft Entertainment's Operating Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Ubisoft Entertainment ranks #497 out of 553 companies for Operating Margin %. This places Ubisoft Entertainment in the lower half of its industry. The industry median Operating Margin % is 2.99. 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 Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.99, based on 553 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. 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 Ubisoft Entertainment and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ubisoft Entertainment's current Operating Margin % is -162.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ubisoft Entertainment stock overvalued right now?
Based on GuruFocus' analysis, Ubisoft Entertainment (UBSFY) is currently considered Possible Value Trap. The stock's GF Value™ is $1.78, compared to a current price of $1.07 — trading 39.9% below its estimated fair value. The current Operating Margin % is -162.94%. Ubisoft Entertainment's overall GF Score™ is 58/100 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 Ubisoft Entertainment (UBSFY), the current Operating Margin % is -162.94% 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 Ubisoft Entertainment (UBSFY) Overvalued in 2026?
Based on GuruFocus' analysis, Ubisoft Entertainment stock appears to be undervalued.
The current stock price of $1.07 is trading 39.9% below its estimated GF Value™ of $1.78.
GuruFocus considers Ubisoft Entertainment to be Possible Value Trap.
Key valuation signals for UBSFY:
Operating Margin %: -162.94%
GF Value™: $1.78 vs. price of $1.07 (39.9% below fair value)
No single metric tells the full story. See the UBSFY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ubisoft develops and publishes top-quality video games for play on gaming consoles, PCs, and mobile devices. Its major franchises include Assassin's Creed, Rainbow Six, Far Cry, Just Dance, The Crew, and Skull & Bones. It also has a license to release games under the Star Wars and Avatar banners, as well as use the Tom Clancy name. The firm also holds the game streaming rights to Activision's existing catalog and any games it develops through 2038. Typically, over 40% of the firm's sales come from North America, and 35% from Europe.
58GF Score
Get the complete analysis for UBSFY
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
UBSFY has been successfully added to your 
