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LSI SoftwareWAR:LSI +5.37%77 Operating Margin % is 23.89% as of Mar. 2026, which is 115% above its 10-year median of 11.12. GuruFocus rates WAR:LSI with a GF Score™ of 77/100 and a GF Value™ of zł26.07 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,822 Software companies, LSI Software ranks better than 87.46% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. LSI Software's Operating Income for the
three
months ended in Mar. 2026 was zł5.97 Mil. LSI Software's Revenue for the
three
months ended in Mar. 2026 was zł25.00 Mil. Therefore, LSI Software's Operating Margin % for the quarter that ended in Mar. 2026 was 23.89%.
Good Sign:
LSI Software SA operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for LSI Software's Operating Margin % or its related term are showing as below:
WAR:LSI'
s Operating Margin % Range Over the Past 10 Years
Min: 2.64 Med: 11.12 Max: 19.67
Current: 19.67
WAR:LSI's Operating Margin % is ranked better than 87.46% of 2822
companies
in the Software industry
Industry Median: 3.885
vs WAR:LSI: 19.67
LSI Software's 5-Year Average Operating Margin % Growth Rate was 26.80% per year.
LSI Software's Operating Income for the
three
months ended in Mar. 2026 was zł5.97 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was zł18.46 Mil.
Warning Sign:
LSI Software SA has recorded a loss in operating income at least once over the past 3 years.
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.
LSI Software Operating Margin % Related Terms
LSI Software Operating Margin % Historical Data
* Premium members only.
The historical data trend for LSI Software'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.
WAR:LSI vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, LSI Software'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.
LSI Software Operating Margin % vs Software Industry
For the Software industry and Technology sector, LSI Software's Operating Margin % distribution charts can be found below:
* The bar in red indicates where LSI Software'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.
LSI Software'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.
LSI Software (WAR:LSI) has a Operating Margin % of 23.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on LSI Software and its competitors. This is 115% above median its historical median of 11.12. Over the past decade, LSI Software's Operating Margin % has ranged from 2.64 to 19.67. According to the industry distribution chart, LSI Software ranks #354 out of 2822 companies in the Software industry, placing it in the top 12.5%.
Is LSI Software's Operating Margin % too high?
LSI Software's current Operating Margin % of 23.89% is 115% above median its 10-year median of 11.12. Over the past 10 years, this metric has ranged from a low of 2.64 to a high of 19.67. The Software industry median Operating Margin % is 3.89. LSI Software's value of 23.89% is 514.9% above this industry median. Based on the distribution chart, LSI Software ranks #354 out of 2822 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, LSI Software has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does LSI Software's Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, LSI Software ranks #354 out of 2822 companies for Operating Margin %. This places LSI Software in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.89. LSI Software's value of 23.89% is 514.9% above this benchmark. Historically, LSI Software's own Operating Margin % has ranged from 2.64 to 19.67 over the past decade. While the company's 10-year median is 11.12 vs. the industry median of 3.89, LSI Software 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 3.89, based on 2,822 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. LSI Software's current Operating Margin % of 23.89% is 514.9% 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 LSI Software and its competitors. For the Software industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LSI Software's current Operating Margin % is 23.89%, which is 115% above median its own 10-year median of 11.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LSI Software stock overvalued right now?
Based on GuruFocus' analysis, LSI Software (WAR:LSI) is currently considered Significantly Overvalued. The stock's GF Value™ is zł26.07, compared to a current price of zł62.80 — trading 140.9% above its estimated fair value. The current Operating Margin % is 23.89%, which is 115% above median its 10-year median of 11.12 and 514.9% above the Software industry median of 3.89. LSI Software's overall GF Score™ is 77/100 with 7 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 LSI Software (WAR:LSI), the current Operating Margin % is 23.89% 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 LSI Software (WAR:LSI) Overvalued in 2026?
Based on GuruFocus' analysis, LSI Software stock appears to be overvalued.
The current stock price of zł62.80 is trading 140.9% above its estimated GF Value™ of zł26.07.
GuruFocus considers LSI Software to be Significantly Overvalued.
Key valuation signals for WAR:LSI:
Operating Margin %: 23.89% (115% above median its 10-year median of 11.12)
GF Value™: zł26.07 vs. price of zł62.80 (140.9% above fair value)
Industry Position: 514.9% above the Software median (#354 of 2822)
No single metric tells the full story. See the WAR:LSI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
LSI Software SA is engaged in software development for retail and hospitality sectors as well as for cinema operators. It also involved in professional services, implementation services, maintenance, and the supplying of hardware solutions. The company products are bifurcated namely Bastion Enterprise Resource Planning (ERP), Positive Retail, Positive Hospitality and Expert computer hardware. The company derives majority of its revenues from the sale of the Software business and has operations spread across Poland. Its geographic segments include Poland and other countries.
77GF Score
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