SoftwareONE Holding AGXSWX:SWON -1.70%73 Operating Margin % is 7.28% as of Dec. 2025, which is 6% below its 10-year median of 7.74. GuruFocus rates XSWX:SWON with a GF Score™ of 73/100 and a GF Value™ of CHF15.31 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,818 Software companies, SoftwareONE Holding AG ranks better than 64.05% on this metric.
SoftwareONE Holding AG (XSWX:SWON) 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.
SoftwareONE Holding AG Operating Margin % Related Terms
SoftwareONE Holding AG Operating Margin % Historical Data
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The historical data trend for SoftwareONE Holding AG'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.
XSWX:SWON vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, SoftwareONE Holding AG'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.
SoftwareONE Holding AG Operating Margin % vs Software Industry
For the Software industry and Technology sector, SoftwareONE Holding AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SoftwareONE Holding AG's Operating Margin % falls into.
SoftwareONE Holding AG 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.
SoftwareONE Holding AG'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.
SoftwareONE Holding AG (XSWX:SWON) has a Operating Margin % of 7.28% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on SoftwareONE Holding AG and its competitors. This is near median its historical median of 7.74. Over the past decade, SoftwareONE Holding AG's Operating Margin % has ranged from 1.41 to 15.96. According to the industry distribution chart, SoftwareONE Holding AG ranks #1013 out of 2818 companies in the Software industry, placing it in the top 35.9%.
Is SoftwareONE Holding AG's Operating Margin % too high?
SoftwareONE Holding AG's current Operating Margin % of 7.28% is near median its 10-year median of 7.74. Over the past 10 years, this metric has ranged from a low of 1.41 to a high of 15.96. The Software industry median Operating Margin % is 3.88. SoftwareONE Holding AG's value of 7.28% is 87.9% above this industry median. Based on the distribution chart, SoftwareONE Holding AG ranks #1013 out of 2818 companies in the Software industry, which is above the industry midpoint. Overall, SoftwareONE Holding AG has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does SoftwareONE Holding AG's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, SoftwareONE Holding AG ranks #1013 out of 2818 companies for Operating Margin %. This puts SoftwareONE Holding AG in the upper half of its industry. The industry median Operating Margin % is 3.88. SoftwareONE Holding AG's value of 7.28% is 87.9% above this benchmark. Historically, SoftwareONE Holding AG's own Operating Margin % has ranged from 1.41 to 15.96 over the past decade. While the company's 10-year median is 7.74 vs. the industry median of 3.88, SoftwareONE Holding AG 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 3.88, 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. SoftwareONE Holding AG's current Operating Margin % of 7.28% is 87.9% 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 SoftwareONE Holding AG and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SoftwareONE Holding AG's current Operating Margin % is 7.28%, which is near median its own 10-year median of 7.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SoftwareONE Holding AG stock overvalued right now?
Based on GuruFocus' analysis, SoftwareONE Holding AG (XSWX:SWON) is currently considered Possible Value Trap. The stock's GF Value™ is CHF15.31, compared to a current price of CHF7.82 — trading 48.9% below its estimated fair value. The current Operating Margin % is 7.28%, which is near median its 10-year median of 7.74 and 87.9% above the Software industry median of 3.88. SoftwareONE Holding AG's overall GF Score™ is 73/100 with 6 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 SoftwareONE Holding AG (XSWX:SWON), the current Operating Margin % is 7.28% 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 SoftwareONE Holding AG (XSWX:SWON) Overvalued in 2026?
Based on GuruFocus' analysis, SoftwareONE Holding AG stock appears to be undervalued.
The current stock price of CHF7.82 is trading 48.9% below its estimated GF Value™ of CHF15.31.
GuruFocus considers SoftwareONE Holding AG to be Possible Value Trap.
Key valuation signals for XSWX:SWON:
Operating Margin %: 7.28% (near median its 10-year median of 7.74)
GF Value™: CHF15.31 vs. price of CHF7.82 (48.9% below fair value)
Industry Position: 87.9% above the Software median (#1013 of 2818)
No single metric tells the full story. See the XSWX:SWON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SoftwareONE Holding AG is engaged in providing cloud technology solutions. It generates its revenue from Software and Cloud Marketplace by arranging software license agreements between software providers and end customers and managing cloud subscriptions for them (point in time). Revenue from Software and Cloud Services is generated by providing services to customers (over time), the sale of on-premise software only used to provide software asset management solutions and the resale or sale of self-developed on-premise software. DACH, rEMEA, NORAM, LATAM and APAC are the geographical segments of the company. It derives maximum revenue from DACH (Germany, Austria and Switzerland) segment.
73GF Score
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