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Elad Software SystemsXTAE:ELAD -2.50%14 Operating Margin % is 7.55% as of Dec. 2025, which is 4% above its 10-year median of 7.26. GuruFocus rates XTAE:ELAD with a GF Score™ of 14/100. Among 2,826 Software companies, Elad Software Systems ranks better than 60.33% on this metric.
Elad Software Systems (XTAE:ELAD) 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.
Elad Software Systems Operating Margin % Related Terms
Elad Software Systems Operating Margin % Historical Data
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The historical data trend for Elad Software Systems'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.
Elad Software Systems Operating Margin % Chart
Elad Software Systems Annual Data
Trend
Dec24
Dec25
Operating Margin %
7.54
6.97
Elad Software Systems Semi-Annual Data
Jun24
Dec24
Jun25
Dec25
Operating Margin %
5.79
9.17
6.37
7.55
XTAE:ELAD vs QH, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Elad Software Systems'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.
Elad Software Systems Operating Margin % vs Software Industry
For the Software industry and Technology sector, Elad Software Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Elad Software Systems's Operating Margin % falls into.
Elad Software Systems 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.
Elad Software Systems'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.
Elad Software Systems (XTAE:ELAD) has a Operating Margin % of 7.55% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Elad Software Systems and its competitors. This is near median its historical median of 7.26. Over the past decade, Elad Software Systems' Operating Margin % has ranged from 6.97 to 7.54. According to the industry distribution chart, Elad Software Systems ranks #1121 out of 2826 companies in the Software industry, placing it in the top 39.7%.
Is Elad Software Systems' Operating Margin % too high?
Elad Software Systems' current Operating Margin % of 7.55% is near median its 10-year median of 7.26. Over the past 10 years, this metric has ranged from a low of 6.97 to a high of 7.54. The Software industry median Operating Margin % is 3.90. Elad Software Systems' value of 7.55% is 93.6% above this industry median. Based on the distribution chart, Elad Software Systems ranks #1121 out of 2826 companies in the Software industry, which is above the industry midpoint. Overall, Elad Software Systems has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Elad Software Systems' Operating Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Elad Software Systems ranks #1121 out of 2826 companies for Operating Margin %. This puts Elad Software Systems in the upper half of its industry. The industry median Operating Margin % is 3.90. Elad Software Systems' value of 7.55% is 93.6% above this benchmark. Historically, Elad Software Systems' own Operating Margin % has ranged from 6.97 to 7.54 over the past decade. While the company's 10-year median is 7.26 vs. the industry median of 3.90, Elad Software Systems 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 3.90, based on 2,826 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. Elad Software Systems's current Operating Margin % of 7.55% is 93.6% 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 Elad Software Systems and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elad Software Systems's current Operating Margin % is 7.55%, which is near median its own 10-year median of 7.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elad Software Systems stock overvalued right now?
Elad Software Systems (XTAE:ELAD) has a current Operating Margin % of 7.55%. The current Operating Margin % is 7.55%, which is near median its 10-year median of 7.26 and 93.6% above the Software industry median of 3.90. Elad Software Systems' overall GF Score™ is 14/100. 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 Elad Software Systems (XTAE:ELAD), the current Operating Margin % is 7.55% 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.
Elad Software Systems specializes in managing and executing end-to-end projects and offers business solutions for strengthening communication with clients through three different channels: Data, CRM, and Digital. Its Data helps managers overcome complex business challenges by implementing data-based management and control tools using various technologies. Its CRM has long-term relationships with its clients and is a partner in the three multinational platforms: Salesforce, Dynamic 365, and Pega, as well as in the automation and integration company. Elad Digital is Israel's customer engagement company, helping businesses achieve its business needs and strengthen relationships with its clients by offering a range of end-to-end solutions.
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