Adtran Networks SE (WBO:ADV) 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.
Adtran Networks SE Operating Margin % Related Terms
Adtran Networks SE Operating Margin % Historical Data
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The historical data trend for Adtran Networks SE'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.
WBO:ADV vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Adtran Networks SE'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.
Adtran Networks SE Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Adtran Networks SE's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Adtran Networks SE'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.
Adtran Networks SE'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.
Adtran Networks SE (WBO:ADV) has a Operating Margin % of -0.90% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Adtran Networks SE and its competitors. According to the industry distribution chart, Adtran Networks SE ranks #1913 out of 2471 companies in the Hardware industry, placing it in the top 77.4%.
Is Adtran Networks SE's Operating Margin % too high?
Adtran Networks SE's current Operating Margin % is -0.90%. Based on the distribution chart, Adtran Networks SE ranks #1913 out of 2471 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Adtran Networks SE has a GF Score™ of 51/100, reflecting its overall financial health beyond just this single metric.
How does Adtran Networks SE's Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Adtran Networks SE ranks #1913 out of 2471 companies for Operating Margin %. This places Adtran Networks SE in the lower half of its industry. The industry median Operating Margin % is 3.80. 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 2,471 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 Adtran Networks SE 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. Adtran Networks SE's current Operating Margin % is -0.90%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adtran Networks SE stock overvalued right now?
Adtran Networks SE (WBO:ADV) has a current Operating Margin % of -0.90%. The stock's GF Value™ is €19.99, compared to a current price of €22.80 — trading 14.1% above its estimated fair value. The current Operating Margin % is -0.90%. Adtran Networks SE's overall GF Score™ is 51/100 with 4 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 Adtran Networks SE (WBO:ADV), the current Operating Margin % is -0.90% as of Dec. 2025. 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 Adtran Networks SE (WBO:ADV) Overvalued in 2026?
Based on GuruFocus' analysis, Adtran Networks SE stock appears to be overvalued.
The current stock price of €22.80 is trading 14.1% above its estimated GF Value™ of €19.99.
Key valuation signals for WBO:ADV:
Operating Margin %: -0.90%
GF Value™: €19.99 vs. price of €22.80 (14.1% above fair value)
No single metric tells the full story. See the WBO:ADV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adtran Networks SE develops, manufactures, and sells optical and Ethernet-based networking solutions to telecommunications carriers and enterprises to deliver data, storage, voice, and video services. Company segment includes: Network Solutions; and Services and Support,These systems are used by telecommunications service providers, private companies, universities, and government agencies. Some of its product categories are Open optical transport, Packet edge and aggregation, Disaggregated networking, Network virtualization, Network infrastructure assurance, and Automated network management. ADVA's geographical segments are United States, United Kingdom, Germany and Other international generating key revenue from United States.
51GF Score
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