American Public EducationAPEI +0.71%69 Operating Margin % is 12.47% as of Mar. 2026, which is 61% above its 10-year median of 7.76. GuruFocus rates APEI with a GF Score™ of 69/100 and a GF Value™ of $20.36 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 258 Education companies, American Public Education ranks worse than 50.39% on this metric.
American Public Education (NAS:APEI) 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.
American Public Education Operating Margin % Related Terms
American Public Education 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.
American Public Education Operating Margin % Chart
APEI vs PXED, AFYA, KLC: Operating Margin % Comparison
For the Education & Training Services subindustry, American Public Education'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.
American Public Education Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, American Public Education's Operating Margin % distribution charts can be found below:
* The bar in red indicates where American Public Education's Operating Margin % falls into.
American Public Education 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.
American Public Education'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.
American Public Education (APEI) has a Operating Margin % of 12.47% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on American Public Education and its competitors. This is 61% above median its historical median of 7.76. Over the past decade, American Public Education's Operating Margin % has ranged from 1.77 to 15.64. According to the industry distribution chart, American Public Education ranks #130 out of 258 companies in the Education industry, placing it in the top 50.4%.
Is American Public Education's Operating Margin % too high?
American Public Education's current Operating Margin % of 12.47% is 61% above median its 10-year median of 7.76. Over the past 10 years, this metric has ranged from a low of 1.77 to a high of 15.64. The Education industry median Operating Margin % is 9.46. American Public Education's value of 12.47% is 31.8% above this industry median. Based on the distribution chart, American Public Education ranks #130 out of 258 companies in the Education industry, which is below the industry midpoint. Overall, American Public Education has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does American Public Education's Operating Margin % compare to PXED and AFYA?
According to the Education industry distribution chart, American Public Education ranks #130 out of 258 companies for Operating Margin %. This places American Public Education in the lower half of its industry. The industry median Operating Margin % is 9.46. American Public Education's value of 12.47% is 31.8% above this benchmark. Historically, American Public Education's own Operating Margin % has ranged from 1.77 to 15.64 over the past decade. While the company's 10-year median is 7.76 vs. the industry median of 9.46, American Public Education 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 an Education company?
The median Operating Margin % among Education companies is 9.46, based on 258 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. American Public Education's current Operating Margin % of 12.47% is 31.8% 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 American Public Education and its competitors. For the Education industry, the median Operating Margin % is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. American Public Education's current Operating Margin % is 12.47%, which is 61% above median its own 10-year median of 7.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is American Public Education stock overvalued right now?
Based on GuruFocus' analysis, American Public Education (APEI) is currently considered Significantly Overvalued. The stock's GF Value™ is $20.36, compared to a current price of $52.18 — trading 156.3% above its estimated fair value. The current Operating Margin % is 12.47%, which is 61% above median its 10-year median of 7.76 and 31.8% above the Education industry median of 9.46. American Public Education's overall GF Score™ is 69/100 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 American Public Education (APEI), the current Operating Margin % is 12.47% 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 American Public Education (APEI) Overvalued in 2026?
Based on GuruFocus' analysis, American Public Education stock appears to be overvalued.
The current stock price of $52.18 is trading 156.3% above its estimated GF Value™ of $20.36.
GuruFocus considers American Public Education to be Significantly Overvalued.
Key valuation signals for APEI:
Operating Margin %: 12.47% (61% above median its 10-year median of 7.76)
GF Value™: $20.36 vs. price of $52.18 (156.3% above fair value)
Industry Position: 31.8% above the Education median (#130 of 258)
No single metric tells the full story. See the APEI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
American Public Education Inc provides online and campus based postsecondary education including various undergraduate and graduate degree programs. The fields of study include business administration, health science, technology, criminal justice, education, liberal arts, national security, military studies, intelligence, and homeland security. There are three reporting segments: the American Public University segment which is the key revenue generator, provides online postsecondary education as a distance-learning, graduate-level institution for military officers seeking a degree in military studies; the Rasmussen University Segment and the Hondros College of Nursing segment. The revenue is generated from net course registrations and enrollment, tuition rate, net tuition, and other fees.
69GF Score
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