Shapir Engineering and IndustryXTAE:SPEN 90 Operating Margin % is 7.51% as of Mar. 2026, which is 39% below its 10-year median of 12.23. GuruFocus rates XTAE:SPEN with a GF Score™ of 90/100 and a GF Value™ of ₪31.10 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 1,767 Construction companies, Shapir Engineering and Industry ranks better than 65.42% on this metric.
Shapir Engineering and Industry (XTAE:SPEN) 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.
Shapir Engineering and Industry Operating Margin % Related Terms
Shapir Engineering and Industry Operating Margin % Historical Data
* 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.
Shapir Engineering and Industry Operating Margin % Chart
XTAE:SPEN vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Shapir Engineering and Industry'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.
Shapir Engineering and Industry Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Shapir Engineering and Industry's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shapir Engineering and Industry's Operating Margin % falls into.
Shapir Engineering and Industry 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.
* 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.
Shapir Engineering and Industry (XTAE:SPEN) has a Operating Margin % of 7.51% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shapir Engineering and Industry and its competitors. This is 39% below median its historical median of 12.23. Over the past decade, Shapir Engineering and Industry's Operating Margin % has ranged from 7.37 to 15.13. According to the industry distribution chart, Shapir Engineering and Industry ranks #611 out of 1767 companies in the Construction industry, placing it in the top 34.6%.
Is Shapir Engineering and Industry's Operating Margin % too high?
Shapir Engineering and Industry's current Operating Margin % of 7.51% is 39% below median its 10-year median of 12.23. Over the past 10 years, this metric has ranged from a low of 7.37 to a high of 15.13. The Construction industry median Operating Margin % is 5.89. Shapir Engineering and Industry's value of 7.51% is 27.5% above this industry median. Based on the distribution chart, Shapir Engineering and Industry ranks #611 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Shapir Engineering and Industry has a GF Score™ of 90/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shapir Engineering and Industry's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Shapir Engineering and Industry ranks #611 out of 1767 companies for Operating Margin %. This puts Shapir Engineering and Industry in the upper half of its industry. The industry median Operating Margin % is 5.89. Shapir Engineering and Industry's value of 7.51% is 27.5% above this benchmark. Historically, Shapir Engineering and Industry's own Operating Margin % has ranged from 7.37 to 15.13 over the past decade. While the company's 10-year median is 12.23 vs. the industry median of 5.89, Shapir Engineering and Industry 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Shapir Engineering and Industry's current Operating Margin % of 7.51% is 27.5% 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 Shapir Engineering and Industry and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shapir Engineering and Industry's current Operating Margin % is 7.51%, which is 39% below median its own 10-year median of 12.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shapir Engineering and Industry stock overvalued right now?
Based on GuruFocus' analysis, Shapir Engineering and Industry (XTAE:SPEN) is currently considered Significantly Overvalued. The stock's GF Value™ is ₪31.10, compared to a current price of ₪43.52 — trading 39.9% above its estimated fair value. The current Operating Margin % is 7.51%, which is 39% below median its 10-year median of 12.23 and 27.5% above the Construction industry median of 5.89. Shapir Engineering and Industry's overall GF Score™ is 90/100 with 11 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 Shapir Engineering and Industry (XTAE:SPEN), the current Operating Margin % is 7.51% 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 Shapir Engineering and Industry (XTAE:SPEN) Overvalued in 2026?
Based on GuruFocus' analysis, Shapir Engineering and Industry stock appears to be overvalued.
The current stock price of ₪43.52 is trading 39.9% above its estimated GF Value™ of ₪31.10.
GuruFocus considers Shapir Engineering and Industry to be Significantly Overvalued.
Key valuation signals for XTAE:SPEN:
Operating Margin %: 7.51% (39% below median its 10-year median of 12.23)
GF Value™: ₪31.10 vs. price of ₪43.52 (39.9% above fair value)
Industry Position: 27.5% above the Construction median (#611 of 1767)
No single metric tells the full story. See the XTAE:SPEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shapir Engineering and Industry Business Description
Shapir Engineering and Industry Ltd is an Israel-based company which is active in engineering and construction industry. It is engaged in manufacturing and supplying of aggregates and road materials, concrete, concrete fabricated plant as well as asphalt for road paving. The company also manufactures ready mix concrete and building finishing products and prefabricated elements from prestressed and precast concrete. Shapir focuses on developing high-quality apartment buildings and other apartments in various projects through Israel.
90GF Score
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