ALFABS AUSTRALIAASX:AAL +12.00%20 Operating Margin % is 5.48% as of Dec. 2025, which is 43% below its 10-year median of 9.67. GuruFocus rates ASX:AAL with a GF Score™ of 20/100. The stock has 5 warning signs investors should review. Among 545 Conglomerates companies, ALFABS AUSTRALIA ranks better than 69.91% on this metric.
ALFABS AUSTRALIA (ASX:AAL) 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.
ALFABS AUSTRALIA Operating Margin % Related Terms
ALFABS AUSTRALIA Operating Margin % Historical Data
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The historical data trend for ALFABS AUSTRALIA'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.
ASX:AAL vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, ALFABS AUSTRALIA'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.
ALFABS AUSTRALIA Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, ALFABS AUSTRALIA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ALFABS AUSTRALIA'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.
ALFABS AUSTRALIA'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.
ALFABS AUSTRALIA (ASX:AAL) has a Operating Margin % of 5.48% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on ALFABS AUSTRALIA and its competitors. This is 43% below median its historical median of 9.67. Over the past decade, ALFABS AUSTRALIA's Operating Margin % has ranged from 3.58 to 17.37. According to the industry distribution chart, ALFABS AUSTRALIA ranks #164 out of 545 companies in the Conglomerates industry, placing it in the top 30.1%.
Is ALFABS AUSTRALIA's Operating Margin % too high?
ALFABS AUSTRALIA's current Operating Margin % of 5.48% is 43% below median its 10-year median of 9.67. Over the past 10 years, this metric has ranged from a low of 3.58 to a high of 17.37. The Conglomerates industry median Operating Margin % is 5.93. ALFABS AUSTRALIA's value of 5.48% is 7.6% below this industry median. Based on the distribution chart, ALFABS AUSTRALIA ranks #164 out of 545 companies in the Conglomerates industry, which is above the industry midpoint. Overall, ALFABS AUSTRALIA has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does ALFABS AUSTRALIA's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, ALFABS AUSTRALIA ranks #164 out of 545 companies for Operating Margin %. This puts ALFABS AUSTRALIA in the upper half of its industry. The industry median Operating Margin % is 5.93. ALFABS AUSTRALIA's value of 5.48% is 7.6% below this benchmark. Historically, ALFABS AUSTRALIA's own Operating Margin % has ranged from 3.58 to 17.37 over the past decade. While the company's 10-year median is 9.67 vs. the industry median of 5.93, ALFABS AUSTRALIA has consistently been below 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 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. ALFABS AUSTRALIA's current Operating Margin % of 5.48% is 7.6% below 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 ALFABS AUSTRALIA and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALFABS AUSTRALIA's current Operating Margin % is 5.48%, which is 43% below median its own 10-year median of 9.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALFABS AUSTRALIA stock overvalued right now?
ALFABS AUSTRALIA (ASX:AAL) has a current Operating Margin % of 5.48%. The current Operating Margin % is 5.48%, which is 43% below median its 10-year median of 9.67 and 7.6% below the Conglomerates industry median of 5.93. ALFABS AUSTRALIA's overall GF Score™ is 20/100 with 5 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 ALFABS AUSTRALIA (ASX:AAL), the current Operating Margin % is 5.48% 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.
ALFABS AUSTRALIA Ltd is a company that provides a design-to-delivery solution for its clients across heavy steel fabrication, construction, and maintenance services, mining equipment, protective coatings, and transport. Its reportable segments are Mining, Engineering, and Other. The Mining segment is engaged in the manufacture, repair, overhaul, servicing, and hire of underground mining and ancillary equipment, together with sales of mining-related consumables and spare parts. The Engineering segment, which derives maximum revenue for the company, is involved in heavy steel fabrication, site installation works, and site-based maintenance; and the Other segment represents head office and ancillary businesses, including protective coatings and transport.
20GF Score
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