Austco HealthcareASX:AHC +11.36%70 Operating Margin % is 13.26% as of Dec. 2025, which is 201% above its 10-year median of 4.41. GuruFocus rates ASX:AHC with a GF Score™ of 70/100 and a GF Value™ of A$0.33 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 816 Medical Devices & Instruments companies, Austco Healthcare ranks better than 75% on this metric.
Austco Healthcare Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Austco Healthcare's Operating Margin % or its related term are showing as below:
ASX:AHC'
s Operating Margin % Range Over the Past 10 Years
Min: -13.45 Med: 4.41 Max: 13.52
Current: 13.52
ASX:AHC's Operating Margin % is ranked better than 75% of 816
companies
in the Medical Devices & Instruments industry
Industry Median: 3.465
vs ASX:AHC: 13.52
Austco Healthcare's 5-Year Average Operating Margin % Growth Rate was 19.80% per year.
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.
Austco Healthcare Operating Margin % Related Terms
Austco Healthcare Operating Margin % Historical Data
* Premium members only.
The historical data trend for Austco Healthcare'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:AHC vs ISRG, BDX, MDLN: Operating Margin % Comparison
For the Medical Instruments & Supplies subindustry, Austco Healthcare'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.
Austco Healthcare Operating Margin % vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Austco Healthcare's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Austco Healthcare'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.
Austco Healthcare'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.
Austco Healthcare (ASX:AHC) has a Operating Margin % of 13.26% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Austco Healthcare and its competitors. This is 201% above median its historical median of 4.41. According to the industry distribution chart, Austco Healthcare ranks #204 out of 816 companies in the Medical Devices & Instruments industry, placing it in the top 25%.
Is Austco Healthcare's Operating Margin % too high?
Austco Healthcare's current Operating Margin % of 13.26% is 201% above median its 10-year median of 4.41. The Medical Devices & Instruments industry median Operating Margin % is 3.47. Austco Healthcare's value of 13.26% is 282.7% above this industry median. Based on the distribution chart, Austco Healthcare ranks #204 out of 816 companies in the Medical Devices & Instruments industry, which is in the top quartile — a strong position relative to peers. Overall, Austco Healthcare has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Austco Healthcare's Operating Margin % compare to ISRG and BDX?
According to the Medical Devices & Instruments industry distribution chart, Austco Healthcare ranks #204 out of 816 companies for Operating Margin %. This places Austco Healthcare in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.47. Austco Healthcare's value of 13.26% is 282.7% above this benchmark. While the company's 10-year median is 4.41 vs. the industry median of 3.47, Austco Healthcare 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 Medical Devices & Instruments company?
The median Operating Margin % among Medical Devices & Instruments companies is 3.47, based on 816 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. Austco Healthcare's current Operating Margin % of 13.26% is 282.7% 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 Austco Healthcare and its competitors. For the Medical Devices & Instruments industry, the median Operating Margin % is 3.47 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Austco Healthcare's current Operating Margin % is 13.26%, which is 201% above median its own 10-year median of 4.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Austco Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Austco Healthcare (ASX:AHC) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.33, compared to a current price of A$0.25 — trading 25.8% below its estimated fair value. The current Operating Margin % is 13.26%, which is 201% above median its 10-year median of 4.41 and 282.7% above the Medical Devices & Instruments industry median of 3.47. Austco Healthcare's overall GF Score™ is 70/100 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 Austco Healthcare (ASX:AHC), the current Operating Margin % is 13.26% 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 Austco Healthcare (ASX:AHC) Overvalued in 2026?
Based on GuruFocus' analysis, Austco Healthcare stock appears to be undervalued.
The current stock price of A$0.25 is trading 25.8% below its estimated GF Value™ of A$0.33.
GuruFocus considers Austco Healthcare to be Modestly Undervalued.
Key valuation signals for ASX:AHC:
Operating Margin %: 13.26% (201% above median its 10-year median of 4.41)
GF Value™: A$0.33 vs. price of A$0.25 (25.8% below fair value)
Industry Position: 282.7% above the Medical Devices & Instruments median (#204 of 816)
No single metric tells the full story. See the ASX:AHC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Austco Healthcare Ltd engages in the development and provision of electronic communications and clinical management solutions. It offers Tacera, a nurse call, and healthcare communication system for healthcare professionals and patient. The group is segmented into four geographic regions consisting of Australia/New Zealand, Asia, Europe, and North America.
70GF Score
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