Shepherd NeameAQSE:SHEP -2.22%72 Operating Margin % is 7.60% as of Jun. 2025, which is 10% below its 10-year median of 8.49. GuruFocus rates AQSE:SHEP with a GF Score™ of 72/100 and a GF Value™ of £6.75 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 361 Restaurants companies, Shepherd Neame ranks better than 71.47% on this metric.
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.
Shepherd Neame Operating Margin % Related Terms
Shepherd Neame Operating Margin % Historical Data
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The historical data trend for Shepherd Neame'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.
AQSE:SHEP vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Shepherd Neame'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.
Shepherd Neame Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shepherd Neame's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shepherd Neame'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.
Shepherd Neame's Operating Margin % for the fiscal year that ended in Jun. 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.
Shepherd Neame (AQSE:SHEP) has a Operating Margin % of 7.60% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Shepherd Neame and its competitors. This is 10% below median its historical median of 8.49. According to the industry distribution chart, Shepherd Neame ranks #103 out of 361 companies in the Restaurants industry, placing it in the top 28.5%.
Is Shepherd Neame's Operating Margin % too high?
Shepherd Neame's current Operating Margin % of 7.60% is 10% below median its 10-year median of 8.49. The Restaurants industry median Operating Margin % is 4.37. Shepherd Neame's value of 7.60% is 73.9% above this industry median. Based on the distribution chart, Shepherd Neame ranks #103 out of 361 companies in the Restaurants industry, which is above the industry midpoint. Overall, Shepherd Neame has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shepherd Neame's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Shepherd Neame ranks #103 out of 361 companies for Operating Margin %. This puts Shepherd Neame in the upper half of its industry. The industry median Operating Margin % is 4.37. Shepherd Neame's value of 7.60% is 73.9% above this benchmark. While the company's 10-year median is 8.49 vs. the industry median of 4.37, Shepherd Neame 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.37, based on 361 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. Shepherd Neame's current Operating Margin % of 7.60% is 73.9% 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 Shepherd Neame and its competitors. For the Restaurants industry, the median Operating Margin % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shepherd Neame's current Operating Margin % is 7.60%, which is 10% below median its own 10-year median of 8.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shepherd Neame stock overvalued right now?
Based on GuruFocus' analysis, Shepherd Neame (AQSE:SHEP) is currently considered Modestly Undervalued. The stock's GF Value™ is £6.75, compared to a current price of £4.84 — trading 28.3% below its estimated fair value. The current Operating Margin % is 7.60%, which is 10% below median its 10-year median of 8.49 and 73.9% above the Restaurants industry median of 4.37. Shepherd Neame's overall GF Score™ is 72/100 with 4 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 Shepherd Neame (AQSE:SHEP), the current Operating Margin % is 7.60% as of Jun. 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.
Is Shepherd Neame (AQSE:SHEP) Overvalued in 2026?
Based on GuruFocus' analysis, Shepherd Neame stock appears to be undervalued.
The current stock price of £4.84 is trading 28.3% below its estimated GF Value™ of £6.75.
GuruFocus considers Shepherd Neame to be Modestly Undervalued.
Key valuation signals for AQSE:SHEP:
Operating Margin %: 7.60% (10% below median its 10-year median of 8.49)
GF Value™: £6.75 vs. price of £4.84 (28.3% below fair value)
Industry Position: 73.9% above the Restaurants median (#103 of 361)
No single metric tells the full story. See the AQSE:SHEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shepherd Neame Ltd brews and packages beer, wholesales and retails beer, cider, wines, spirits, and minerals, owns property and public houses, and provides hotel management services. Its segments are Brewing and Brands, Retail Pubs and Hotels, and Tenanted Pubs, with the majority of revenue coming from Retail Pubs and Hotels. The company brews and distributes its own beers, including Spitfire, Bishops Finger, Whitstable Bay, Bear Island, Creekside IPA, First Drop Session IPA, and Iron Wharf Stout. It also brews licensed international lagers like Singha. The company operates in the UK and internationally, with the majority of revenue coming from the UK.
72GF Score
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