Adore Beauty Group (ASX:ABY) Operating Margin %: 1.12% (As of Dec. 2025) — Near Median


ASX:ABY Adore Beauty Group Ltd ASX:ABY
44 GF Score
Price A$0.30
GF Value A$1.08
Valuation Possible Value Trap
! 5 Warning Signs
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What is Adore Beauty Group Operating Margin %?

Adore Beauty Group ASX:ABY -3.23% 44 Operating Margin % is 1.12% as of Dec. 2025, which is 4% below its 10-year median of 1.17. GuruFocus rates ASX:ABY with a GF Score™ of 44/100 and a GF Value™ of A$1.08 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Adore Beauty Group ranks worse than 68.09% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Adore Beauty Group's Operating Income for the six months ended in Dec. 2025 was A$1.3 Mil. Adore Beauty Group's Revenue for the six months ended in Dec. 2025 was A$111.9 Mil. Therefore, Adore Beauty Group's Operating Margin % for the quarter that ended in Dec. 2025 was 1.12%.

The historical rank and industry rank for Adore Beauty Group's Operating Margin % or its related term are showing as below:

ASX:ABY' s Operating Margin % Range Over the Past 10 Years
Min: -0.82   Med: 1.17   Max: 2.05
Current: 1.22


ASX:ABY's Operating Margin % is ranked worse than
68.09% of 1128 companies
in the Retail - Cyclical industry
Industry Median: 3.905 vs ASX:ABY: 1.22

Adore Beauty Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Adore Beauty Group's Operating Income for the six months ended in Dec. 2025 was A$1.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$2.5 Mil.

Warning Sign:

Adore Beauty Group Ltd has recorded a loss in operating income at least once over the past 3 years.


Adore Beauty Group  (ASX:ABY) 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 Nokia’s 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.


Adore Beauty Group Operating Margin % Related Terms


Adore Beauty Group Operating Margin % Historical Data

* Premium members only.

The historical data trend for Adore Beauty Group'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.

Adore Beauty Group Operating Margin % Chart

Adore Beauty Group Annual Data
Trend Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Margin %
Get a 7-Day Free Trial 0.08 1.88 -0.82 1.17 2.05

Adore Beauty Group Semi-Annual Data
Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.22 1.12 2.71 1.33 1.12

ASX:ABY vs CASY, WSM, ULTA: Operating Margin % Comparison

For the Specialty Retail subindustry, Adore Beauty Group'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.


Adore Beauty Group Operating Margin % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Adore Beauty Group's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Adore Beauty Group's Operating Margin % falls into.


ASX:ABY
44GF Score
Adore Beauty Group Ltd ASX:ABY
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Adore Beauty Group 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.

Adore Beauty Group's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as

Operating Margin %=Operating Income (A: Jun. 2025 ) / Revenue (A: Jun. 2025 )
=4.067 / 198.815
=2.05 %

Adore Beauty Group's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=1.251 / 111.943
=1.12 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 1.12% mean?
Adore Beauty Group (ASX:ABY) has a Operating Margin % of 1.12% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Adore Beauty Group and its competitors. This is near median its historical median of 1.17. According to the industry distribution chart, Adore Beauty Group ranks #768 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 68.1%.
Is Adore Beauty Group's Operating Margin % too high?
Adore Beauty Group's current Operating Margin % of 1.12% is near median its 10-year median of 1.17. The Retail - Cyclical industry median Operating Margin % is 3.91. Adore Beauty Group's value of 1.12% is 71.3% below this industry median. Based on the distribution chart, Adore Beauty Group ranks #768 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Adore Beauty Group has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Adore Beauty Group's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Adore Beauty Group ranks #768 out of 1128 companies for Operating Margin %. This places Adore Beauty Group in the lower half of its industry. The industry median Operating Margin % is 3.91. Adore Beauty Group's value of 1.12% is 71.3% below this benchmark. While the company's 10-year median is 1.17 vs. the industry median of 3.91, Adore Beauty Group 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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. Adore Beauty Group's current Operating Margin % of 1.12% is 71.3% 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 Adore Beauty Group and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adore Beauty Group's current Operating Margin % is 1.12%, which is near median its own 10-year median of 1.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adore Beauty Group stock overvalued right now?
Based on GuruFocus' analysis, Adore Beauty Group (ASX:ABY) is currently considered Possible Value Trap. The stock's GF Value™ is A$1.08, compared to a current price of A$0.30 — trading 72.2% below its estimated fair value. The current Operating Margin % is 1.12%, which is near median its 10-year median of 1.17 and 71.3% below the Retail - Cyclical industry median of 3.91. Adore Beauty Group's overall GF Score™ is 44/100 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 Adore Beauty Group (ASX:ABY), the current Operating Margin % is 1.12% 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.

Is Adore Beauty Group (ASX:ABY) Overvalued in 2026?

Based on GuruFocus' analysis, Adore Beauty Group stock appears to be undervalued. The current stock price of A$0.30 is trading 72.2% below its estimated GF Value™ of A$1.08. GuruFocus considers Adore Beauty Group to be Possible Value Trap.

Key valuation signals for ASX:ABY:

  • Operating Margin %: 1.12% (near median its 10-year median of 1.17)
  • GF Value™: A$1.08 vs. price of A$0.30 (72.2% below fair value)
  • GF Score™: 44/100 with 5 warning signs
  • Industry Position: 71.3% below the Retail - Cyclical median (#768 of 1128)

No single metric tells the full story. See the ASX:ABY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Adore Beauty Group Business Description

Address 324 Saint Kilda Road, Level 7, Southbank, VIC, AUS, 3006
Adore Beauty Group Ltd is engaged in the online sales of cosmetics. It offers various products including skin care, hair care, body care, cosmetics, fragrances, oral care, and dietary supplements among others. The firm generates revenue through the sale of beauty and personal care products online. The Group has identified two distinct operating segments based on quantitative thresholds on profit or loss, encompassing the Adore Beauty and iKOU brands.
44GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.30
Price
A$1.08
GF Value