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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.
Novatech Industries Operating Margin % Related Terms
Novatech Industries Operating Margin % Historical Data
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The historical data trend for Novatech Industries'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.
XPAR:MLNOV vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Novatech Industries'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.
Novatech Industries Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Novatech Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Novatech Industries'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.
Novatech Industries'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.
Novatech Industries (XPAR:MLNOV) has a Operating Margin % of -1.12% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Novatech Industries and its competitors. According to the industry distribution chart, Novatech Industries ranks #1747 out of 2477 companies in the Hardware industry, placing it in the top 70.5%.
Is Novatech Industries' Operating Margin % too high?
Novatech Industries' current Operating Margin % is -1.12%. Based on the distribution chart, Novatech Industries ranks #1747 out of 2477 companies in the Hardware industry, which is below the industry midpoint. Overall, Novatech Industries has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novatech Industries' Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Novatech Industries ranks #1747 out of 2477 companies for Operating Margin %. This places Novatech Industries 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 2,477 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 Novatech Industries 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. Novatech Industries's current Operating Margin % is -1.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novatech Industries stock overvalued right now?
Based on GuruFocus' analysis, Novatech Industries (XPAR:MLNOV) is currently considered Significantly Overvalued. The stock's GF Value™ is €11.88, compared to a current price of €16.20 — trading 36.4% above its estimated fair value. The current Operating Margin % is -1.12%. Novatech Industries' overall GF Score™ is 71/100 with 2 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 Novatech Industries (XPAR:MLNOV), the current Operating Margin % is -1.12% 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 Novatech Industries (XPAR:MLNOV) Overvalued in 2026?
Based on GuruFocus' analysis, Novatech Industries stock appears to be overvalued.
The current stock price of €16.20 is trading 36.4% above its estimated GF Value™ of €11.88.
GuruFocus considers Novatech Industries to be Significantly Overvalued.
Key valuation signals for XPAR:MLNOV:
Operating Margin %: -1.12%
GF Value™: €11.88 vs. price of €16.20 (36.4% above fair value)
No single metric tells the full story. See the XPAR:MLNOV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novatech Industries is engaged in electronic sub-contracting services. It operates in two main activities: the assembly of electric components supplied by contractors and the manufacture of electronic cards.
71GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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