Vecima NetworksVNWTF 72 Operating Margin % is 1.79% as of Mar. 2026, which is 62% below its 10-year median of 4.69. GuruFocus rates VNWTF with a GF Score™ of 72/100 and a GF Value™ of $11.26 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 2,479 Hardware companies, Vecima Networks ranks worse than 71.2% on this metric.
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.
Vecima Networks Operating Margin % Related Terms
Vecima Networks Operating Margin % Historical Data
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The historical data trend for Vecima Networks'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.
VNWTF vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Vecima Networks'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.
Vecima Networks Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Vecima Networks's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vecima Networks'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.
Vecima Networks's Operating Margin % for the fiscal year that ended in Jun. 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.
Vecima Networks (VNWTF) has a Operating Margin % of 1.79% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vecima Networks and its competitors. This is 62% below median its historical median of 4.69. According to the industry distribution chart, Vecima Networks ranks #1765 out of 2479 companies in the Hardware industry, placing it in the top 71.2%.
Is Vecima Networks' Operating Margin % too high?
Vecima Networks' current Operating Margin % of 1.79% is 62% below median its 10-year median of 4.69. The Hardware industry median Operating Margin % is 3.80. Vecima Networks' value of 1.79% is 52.9% below this industry median. Based on the distribution chart, Vecima Networks ranks #1765 out of 2479 companies in the Hardware industry, which is below the industry midpoint. Overall, Vecima Networks has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Vecima Networks' Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Vecima Networks ranks #1765 out of 2479 companies for Operating Margin %. This places Vecima Networks in the lower half of its industry. The industry median Operating Margin % is 3.80. Vecima Networks' value of 1.79% is 52.9% below this benchmark. While the company's 10-year median is 4.69 vs. the industry median of 3.80, Vecima Networks 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 a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,479 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. Vecima Networks's current Operating Margin % of 1.79% is 52.9% 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 Vecima Networks 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. Vecima Networks's current Operating Margin % is 1.79%, which is 62% below median its own 10-year median of 4.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vecima Networks stock overvalued right now?
Based on GuruFocus' analysis, Vecima Networks (VNWTF) is currently considered Modestly Undervalued. The stock's GF Value™ is $11.26, compared to a current price of $9.02 — trading 19.9% below its estimated fair value. The current Operating Margin % is 1.79%, which is 62% below median its 10-year median of 4.69 and 52.9% below the Hardware industry median of 3.80. Vecima Networks' overall GF Score™ is 72/100 with 9 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 Vecima Networks (VNWTF), the current Operating Margin % is 1.79% 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 Vecima Networks (VNWTF) Overvalued in 2026?
Based on GuruFocus' analysis, Vecima Networks stock appears to be undervalued.
The current stock price of $9.02 is trading 19.9% below its estimated GF Value™ of $11.26.
GuruFocus considers Vecima Networks to be Modestly Undervalued.
Key valuation signals for VNWTF:
Operating Margin %: 1.79% (62% below median its 10-year median of 4.69)
GF Value™: $11.26 vs. price of $9.02 (19.9% below fair value)
Industry Position: 52.9% below the Hardware median (#1765 of 2479)
No single metric tells the full story. See the VNWTF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vecima Networks Inc is a Canadian company that develops integrated hardware and software solutions for broadband access, content delivery, and telematics. It operates through three business segments: Video and Broadband Solutions, Content Delivery and Storage, and Telematics. The majority revenue generation segment, Video and Broadband Solutions segment, provides platforms that support broadband and video services over cable and fiber networks. The Content Delivery and Storage segment offers software and solutions for storing, transforming, and delivering video content. The Telematics segment provides fleet management and asset tracking solutions for mobile and fixed assets. The company has operations with offices and manufacturing facilities in several countries.
72GF Score
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