Apiam Animal Health (ASX:AHX) 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.
Apiam Animal Health Operating Margin % Related Terms
Apiam Animal Health Operating Margin % Historical Data
* Premium members only.
The historical data trend for Apiam Animal Health'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:AHX vs ROL, SCI, BFAM: Operating Margin % Comparison
For the Personal Services subindustry, Apiam Animal Health'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.
Apiam Animal Health Operating Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Apiam Animal Health's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Apiam Animal Health's Operating Margin % falls into.
Apiam Animal Health 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.
Apiam Animal Health'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.
Apiam Animal Health (ASX:AHX) has a Operating Margin % of 5.51% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Apiam Animal Health and its competitors. This is near median its historical median of 6.03. Over the past decade, Apiam Animal Health's Operating Margin % has ranged from 2.78 to 6.56.
Is Apiam Animal Health's Operating Margin % too high?
Apiam Animal Health's current Operating Margin % of 5.51% is near median its 10-year median of 6.03. Over the past 10 years, this metric has ranged from a low of 2.78 to a high of 6.56. The Personal Services industry median Operating Margin % is 6.55. Apiam Animal Health's value of 5.51% is 15.9% below this industry median. Overall, Apiam Animal Health has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does Apiam Animal Health's Operating Margin % compare to ROL and SCI?
Apiam Animal Health's Operating Margin % of 5.51% can be compared against companies in the Personal Services industry. The industry median Operating Margin % is 6.55. Apiam Animal Health's value of 5.51% is 15.9% below this benchmark. Historically, Apiam Animal Health's own Operating Margin % has ranged from 2.78 to 6.56 over the past decade. While the company's 10-year median is 6.03 vs. the industry median of 6.55, Apiam Animal Health 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 Personal Services company?
The median Operating Margin % among Personal Services companies is 6.55, based on 97 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. Apiam Animal Health's current Operating Margin % of 5.51% is 15.9% 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 Apiam Animal Health and its competitors. For the Personal Services industry, the median Operating Margin % is 6.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Apiam Animal Health's current Operating Margin % is 5.51%, which is near median its own 10-year median of 6.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Apiam Animal Health stock overvalued right now?
Apiam Animal Health (ASX:AHX) has a current Operating Margin % of 5.51%. The stock's GF Value™ is A$0.40, compared to a current price of A$0.88 — trading 118.8% above its estimated fair value. The current Operating Margin % is 5.51%, which is near median its 10-year median of 6.03 and 15.9% below the Personal Services industry median of 6.55. Apiam Animal Health's overall GF Score™ is 50/100 with 9 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 Apiam Animal Health (ASX:AHX), the current Operating Margin % is 5.51% 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 Apiam Animal Health (ASX:AHX) Overvalued in 2026?
Based on GuruFocus' analysis, Apiam Animal Health stock appears to be overvalued.
The current stock price of A$0.88 is trading 118.8% above its estimated GF Value™ of A$0.40.
Key valuation signals for ASX:AHX:
Operating Margin %: 5.51% (near median its 10-year median of 6.03)
GF Value™: A$0.40 vs. price of A$0.88 (118.8% above fair value)
Industry Position: 15.9% below the Personal Services median
No single metric tells the full story. See the ASX:AHX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Apiam Animal Health Ltd provides products and services to support the health and welfare of production and mixed animals. The company offers veterinary wholesale, warehousing, logistics, and other ancillary services. Its operating segments include Dairy and Mixed, Feedlots and Pigs. It generates the majority of its revenue from Dairy and Mixed. The Group operates in the segment of provision of veterinary products and services to production, companion and equine animals.
50GF Score
Get the complete analysis for ASX:AHX
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:AHX has been successfully added to your 
