Australian Ethical InvestmentASX:AEF -0.74%98 Operating Margin % is 30.45% as of Dec. 2025, which is 39% above its 10-year median of 21.83. GuruFocus rates ASX:AEF with a GF Score™ of 98/100 and a GF Value™ of A$6.36 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 656 Asset Management companies, Australian Ethical Investment ranks better than 58.38% on this metric.
Australian Ethical Investment (ASX:AEF) 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.
Australian Ethical Investment Operating Margin % Related Terms
Australian Ethical Investment 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.
Australian Ethical Investment Operating Margin % Chart
ASX:AEF vs BLK, BX, KKR: Operating Margin % Comparison
For the Asset Management subindustry, Australian Ethical Investment'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.
Australian Ethical Investment Operating Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Australian Ethical Investment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Australian Ethical Investment's Operating Margin % falls into.
Australian Ethical Investment 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.
* 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.
Australian Ethical Investment (ASX:AEF) has a Operating Margin % of 30.45% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Australian Ethical Investment and its competitors. This is 39% above median its historical median of 21.83. Over the past decade, Australian Ethical Investment's Operating Margin % has ranged from 13.44 to 26.25. According to the industry distribution chart, Australian Ethical Investment ranks #273 out of 656 companies in the Asset Management industry, placing it in the top 41.6%.
Is Australian Ethical Investment's Operating Margin % too high?
Australian Ethical Investment's current Operating Margin % of 30.45% is 39% above median its 10-year median of 21.83. Over the past 10 years, this metric has ranged from a low of 13.44 to a high of 26.25. The Asset Management industry median Operating Margin % is 16.73. Australian Ethical Investment's value of 30.45% is 82% above this industry median. Based on the distribution chart, Australian Ethical Investment ranks #273 out of 656 companies in the Asset Management industry, which is above the industry midpoint. Overall, Australian Ethical Investment has a GF Score™ of 98/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Australian Ethical Investment's Operating Margin % compare to BLK and BX?
According to the Asset Management industry distribution chart, Australian Ethical Investment ranks #273 out of 656 companies for Operating Margin %. This puts Australian Ethical Investment in the upper half of its industry. The industry median Operating Margin % is 16.73. Australian Ethical Investment's value of 30.45% is 82% above this benchmark. Historically, Australian Ethical Investment's own Operating Margin % has ranged from 13.44 to 26.25 over the past decade. While the company's 10-year median is 21.83 vs. the industry median of 16.73, Australian Ethical Investment 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 Asset Management company?
The median Operating Margin % among Asset Management companies is 16.73, based on 656 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. Australian Ethical Investment's current Operating Margin % of 30.45% is 82% 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 Australian Ethical Investment and its competitors. For the Asset Management industry, the median Operating Margin % is 16.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Australian Ethical Investment's current Operating Margin % is 30.45%, which is 39% above median its own 10-year median of 21.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Australian Ethical Investment stock overvalued right now?
Based on GuruFocus' analysis, Australian Ethical Investment (ASX:AEF) is currently considered Possible Value Trap. The stock's GF Value™ is A$6.36, compared to a current price of A$4.05 — trading 36.3% below its estimated fair value. The current Operating Margin % is 30.45%, which is 39% above median its 10-year median of 21.83 and 82% above the Asset Management industry median of 16.73. Australian Ethical Investment's overall GF Score™ is 98/100 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 Australian Ethical Investment (ASX:AEF), the current Operating Margin % is 30.45% 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 Australian Ethical Investment (ASX:AEF) Overvalued in 2026?
Based on GuruFocus' analysis, Australian Ethical Investment stock appears to be undervalued.
The current stock price of A$4.05 is trading 36.3% below its estimated GF Value™ of A$6.36.
GuruFocus considers Australian Ethical Investment to be Possible Value Trap.
Key valuation signals for ASX:AEF:
Operating Margin %: 30.45% (39% above median its 10-year median of 21.83)
GF Value™: A$6.36 vs. price of A$4.05 (36.3% below fair value)
Industry Position: 82% above the Asset Management median (#273 of 656)
No single metric tells the full story. See the ASX:AEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Australian Ethical Investment Business Description
Australian Ethical Investment Ltd is an Australian-based company engaged in the operating segment of Funds Management. The company is involved in acting as the responsible entity for a range of public offer ethically managed investment schemes and acting as the Trustee of the Australian Ethical Retail Superannuation Fund (Super Fund). The various products offered by the company are Super, Managed funds, ETFs, Insurance, and Pension.
98GF Score
Get the complete analysis for ASX:AEF
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:AEF has been successfully added to your 
