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STG InternationalXTAE:STG +1.53%29 Operating Margin % is 5.30% as of Dec. 2025, which is 64% below its 10-year median of 14.73. GuruFocus rates XTAE:STG with a GF Score™ of 29/100. The stock has 3 warning signs investors should review. Among 2,476 Hardware companies, STG International ranks better than 83.44% on this metric.
STG International (XTAE:STG) 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.
STG International Operating Margin % Related Terms
STG International Operating Margin % Historical Data
* Premium members only.
The historical data trend for STG International'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.
STG International Operating Margin % Chart
STG International Annual Data
Trend
Dec23
Dec24
Dec25
Operating Margin %
14.73
14.95
13.43
STG International Semi-Annual Data
Jun24
Dec24
Jun25
Dec25
Operating Margin %
12.91
16.97
19.57
5.30
XTAE:STG vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, STG International'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.
STG International Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, STG International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where STG International'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.
STG International'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.
STG International (XTAE:STG) has a Operating Margin % of 5.30% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on STG International and its competitors. This is 64% below median its historical median of 14.73. Over the past decade, STG International's Operating Margin % has ranged from 13.43 to 14.95. According to the industry distribution chart, STG International ranks #410 out of 2476 companies in the Hardware industry, placing it in the top 16.6%.
Is STG International's Operating Margin % too high?
STG International's current Operating Margin % of 5.30% is 64% below median its 10-year median of 14.73. Over the past 10 years, this metric has ranged from a low of 13.43 to a high of 14.95. The Hardware industry median Operating Margin % is 3.81. STG International's value of 5.30% is 39.1% above this industry median. Based on the distribution chart, STG International ranks #410 out of 2476 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, STG International has a GF Score™ of 29/100, reflecting its overall financial health beyond just this single metric.
How does STG International's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, STG International ranks #410 out of 2476 companies for Operating Margin %. This places STG International in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.81. STG International's value of 5.30% is 39.1% above this benchmark. Historically, STG International's own Operating Margin % has ranged from 13.43 to 14.95 over the past decade. While the company's 10-year median is 14.73 vs. the industry median of 3.81, STG International 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,476 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. STG International's current Operating Margin % of 5.30% is 39.1% 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 STG International and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. STG International's current Operating Margin % is 5.30%, which is 64% below median its own 10-year median of 14.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is STG International stock overvalued right now?
STG International (XTAE:STG) has a current Operating Margin % of 5.30%. The current Operating Margin % is 5.30%, which is 64% below median its 10-year median of 14.73 and 39.1% above the Hardware industry median of 3.81. STG International's overall GF Score™ is 29/100 with 3 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 STG International (XTAE:STG), the current Operating Margin % is 5.30% 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.
STG International Ltd is a reseller of electronic components, equipments and systems in Israel. It distributes electronic components. The Company's products include Passive components, RF and MW components, Electro-Mech components, semiconductors, cooling, power, motion components, and environmental test components, among others. It is expertise in the fields of Defence, Communications, Security, Medical, Industrial and Semiconductor industries.
29GF Score
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