Provide IT Sweden ABXSAT:PROVIT -2.70%62 Operating Margin % is 2.08% as of Mar. 2026, which is 81% below its 10-year median of 10.73. GuruFocus rates XSAT:PROVIT with a GF Score™ of 62/100 and a GF Value™ of kr1.22 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,818 Software companies, Provide IT Sweden AB ranks worse than 73% on this metric.
Provide IT Sweden AB (XSAT:PROVIT) 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.
Provide IT Sweden AB Operating Margin % Related Terms
Provide IT Sweden AB Operating Margin % Historical Data
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The historical data trend for Provide IT Sweden AB'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.
XSAT:PROVIT vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Provide IT Sweden AB'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.
Provide IT Sweden AB Operating Margin % vs Software Industry
For the Software industry and Technology sector, Provide IT Sweden AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Provide IT Sweden AB's Operating Margin % falls into.
Provide IT Sweden AB 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.
Provide IT Sweden AB'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.
Provide IT Sweden AB (XSAT:PROVIT) has a Operating Margin % of 2.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Provide IT Sweden AB and its competitors. This is 81% below median its historical median of 10.73. According to the industry distribution chart, Provide IT Sweden AB ranks #2057 out of 2818 companies in the Software industry, placing it in the top 73%.
Is Provide IT Sweden AB's Operating Margin % too high?
Provide IT Sweden AB's current Operating Margin % of 2.08% is 81% below median its 10-year median of 10.73. The Software industry median Operating Margin % is 3.87. Provide IT Sweden AB's value of 2.08% is 46.2% below this industry median. Based on the distribution chart, Provide IT Sweden AB ranks #2057 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Provide IT Sweden AB has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Provide IT Sweden AB's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Provide IT Sweden AB ranks #2057 out of 2818 companies for Operating Margin %. This places Provide IT Sweden AB in the lower half of its industry. The industry median Operating Margin % is 3.87. Provide IT Sweden AB's value of 2.08% is 46.2% below this benchmark. While the company's 10-year median is 10.73 vs. the industry median of 3.87, Provide IT Sweden AB 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 Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 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. Provide IT Sweden AB's current Operating Margin % of 2.08% is 46.2% 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 Provide IT Sweden AB and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Provide IT Sweden AB's current Operating Margin % is 2.08%, which is 81% below median its own 10-year median of 10.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Provide IT Sweden AB stock overvalued right now?
Based on GuruFocus' analysis, Provide IT Sweden AB (XSAT:PROVIT) is currently considered Possible Value Trap. The stock's GF Value™ is kr1.22, compared to a current price of kr0.54 — trading 55.7% below its estimated fair value. The current Operating Margin % is 2.08%, which is 81% below median its 10-year median of 10.73 and 46.2% below the Software industry median of 3.87. Provide IT Sweden AB's overall GF Score™ is 62/100 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 Provide IT Sweden AB (XSAT:PROVIT), the current Operating Margin % is 2.08% 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 Provide IT Sweden AB (XSAT:PROVIT) Overvalued in 2026?
Based on GuruFocus' analysis, Provide IT Sweden AB stock appears to be undervalued.
The current stock price of kr0.54 is trading 55.7% below its estimated GF Value™ of kr1.22.
GuruFocus considers Provide IT Sweden AB to be Possible Value Trap.
Key valuation signals for XSAT:PROVIT:
Operating Margin %: 2.08% (81% below median its 10-year median of 10.73)
GF Value™: kr1.22 vs. price of kr0.54 (55.7% below fair value)
Industry Position: 46.2% below the Software median (#2057 of 2818)
No single metric tells the full story. See the XSAT:PROVIT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Provide IT Sweden AB is a digital production company. The company is engaged in the development of web and mobile applications. It provides websites, applications, portals, and e-commerce to national and foreign companies.
62GF Score
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