Xtract One Technologies (OTCPK:XTRAF) 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.
Xtract One Technologies Operating Margin % Related Terms
Xtract One Technologies Operating Margin % Historical Data
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The historical data trend for Xtract One Technologies'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.
XTRAF vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Xtract One Technologies'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.
Xtract One Technologies Operating Margin % vs Software Industry
For the Software industry and Technology sector, Xtract One Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Xtract One Technologies's Operating Margin % falls into.
Xtract One Technologies 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.
Xtract One Technologies's Operating Margin % for the fiscal year that ended in Jul. 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.
Xtract One Technologies (XTRAF) has a Operating Margin % of -2.32% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Xtract One Technologies and its competitors. According to the industry distribution chart, Xtract One Technologies ranks #2349 out of 2818 companies in the Software industry, placing it in the top 83.4%.
Is Xtract One Technologies' Operating Margin % too high?
Xtract One Technologies' current Operating Margin % is -2.32%. Based on the distribution chart, Xtract One Technologies ranks #2349 out of 2818 companies in the Software industry, which is in the bottom quartile relative to peers. Overall, Xtract One Technologies has a GF Score™ of 51/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Xtract One Technologies' Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Xtract One Technologies ranks #2349 out of 2818 companies for Operating Margin %. This places Xtract One Technologies in the lower half of its industry. The industry median Operating Margin % is 3.87. 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. 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 Xtract One Technologies 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. Xtract One Technologies's current Operating Margin % is -2.32%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xtract One Technologies stock overvalued right now?
Based on GuruFocus' analysis, Xtract One Technologies (XTRAF) is currently considered Possible Value Trap. The stock's GF Value™ is $0.75, compared to a current price of $0.41 — trading 45.3% below its estimated fair value. The current Operating Margin % is -2.32%. Xtract One Technologies' overall GF Score™ is 51/100 with 2 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 Xtract One Technologies (XTRAF), the current Operating Margin % is -2.32% as of Apr. 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 Xtract One Technologies (XTRAF) Overvalued in 2026?
Based on GuruFocus' analysis, Xtract One Technologies stock appears to be undervalued.
The current stock price of $0.41 is trading 45.3% below its estimated GF Value™ of $0.75.
GuruFocus considers Xtract One Technologies to be Possible Value Trap.
Key valuation signals for XTRAF:
Operating Margin %: -2.32%
GF Value™: $0.75 vs. price of $0.41 (45.3% below fair value)
No single metric tells the full story. See the XTRAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xtract One Technologies Inc is a technology-driven company focused on AI-powered physical security solutions. The principal business of the company is the development and commercialization of an integrated, layered, AI powered threat detection gateway solutions to enhance public health and safety. The main revenue streams of the company are the upfront commercial sales and subscription sales. Its Geographic segments include the United States, Japan, Canada, France, and the United Kingdom, with the majority of the revenue being generated from the United States.
51GF Score
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