ALSASX:ALQ -1.96%88 Operating Margin % is 17.60% as of Mar. 2026, which is 16% above its 10-year median of 15.13. GuruFocus rates ASX:ALQ with a GF Score™ of 88/100 and a GF Value™ of A$18.96 (Modestly Overvalued). Among 1,070 Business Services companies, ALS ranks better than 80.19% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. ALS's Operating Income for the
six
months ended in Mar. 2026 was A$292 Mil. ALS's Revenue for the
six
months ended in Mar. 2026 was A$1,661 Mil. Therefore, ALS's Operating Margin % for the quarter that ended in Mar. 2026 was 17.60%.
The historical rank and industry rank for ALS's Operating Margin % or its related term are showing as below:
ASX:ALQ'
s Operating Margin % Range Over the Past 10 Years
Min: 13.29 Med: 15.13 Max: 18.95
Current: 15.91
ASX:ALQ's Operating Margin % is ranked better than 80.19% of 1070
companies
in the Business Services industry
Industry Median: 6.33
vs ASX:ALQ: 15.91
ALS's 5-Year Average Operating Margin % Growth Rate was -0.30% per year.
ALS's Operating Income for the
six
months ended in Mar. 2026 was A$292 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was A$528 Mil.
ALS (ASX:ALQ) 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.
ALS Operating Margin % Related Terms
ALS Operating Margin % Historical Data
* Premium members only.
The historical data trend for ALS'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:ALQ vs VRSK, EFX, BAH: Operating Margin % Comparison
For the Consulting Services subindustry, ALS'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.
ALS Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, ALS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ALS'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.
ALS's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
ALS (ASX:ALQ) has a Operating Margin % of 17.60% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ALS and its competitors. This is 16% above median its historical median of 15.13. Over the past decade, ALS's Operating Margin % has ranged from 13.29 to 18.95. According to the industry distribution chart, ALS ranks #212 out of 1070 companies in the Business Services industry, placing it in the top 19.8%.
Is ALS's Operating Margin % too high?
ALS's current Operating Margin % of 17.60% is 16% above median its 10-year median of 15.13. Over the past 10 years, this metric has ranged from a low of 13.29 to a high of 18.95. The Business Services industry median Operating Margin % is 6.33. ALS's value of 17.60% is 178% above this industry median. Based on the distribution chart, ALS ranks #212 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, ALS has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does ALS's Operating Margin % compare to VRSK and EFX?
According to the Business Services industry distribution chart, ALS ranks #212 out of 1070 companies for Operating Margin %. This places ALS in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.33. ALS's value of 17.60% is 178% above this benchmark. Historically, ALS's own Operating Margin % has ranged from 13.29 to 18.95 over the past decade. While the company's 10-year median is 15.13 vs. the industry median of 6.33, ALS 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 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. ALS's current Operating Margin % of 17.60% is 178% 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 ALS and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALS's current Operating Margin % is 17.60%, which is 16% above median its own 10-year median of 15.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALS stock overvalued right now?
Based on GuruFocus' analysis, ALS (ASX:ALQ) is currently considered Modestly Overvalued. The stock's GF Value™ is A$18.96, compared to a current price of A$22.48 — trading 18.6% above its estimated fair value. The current Operating Margin % is 17.60%, which is 16% above median its 10-year median of 15.13 and 178% above the Business Services industry median of 6.33. ALS's overall GF Score™ is 88/100. 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 ALS (ASX:ALQ), the current Operating Margin % is 17.60% as of Mar. 2026. 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 ALS (ASX:ALQ) Overvalued in 2026?
Based on GuruFocus' analysis, ALS stock appears to be overvalued.
The current stock price of A$22.48 is trading 18.6% above its estimated GF Value™ of A$18.96.
GuruFocus considers ALS to be Modestly Overvalued.
Key valuation signals for ASX:ALQ:
Operating Margin %: 17.60% (16% above median its 10-year median of 15.13)
GF Value™: A$18.96 vs. price of A$22.48 (18.6% above fair value)
Industry Position: 178% above the Business Services median (#212 of 1070)
No single metric tells the full story. See the ASX:ALQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in the 1880s and listed on the ASX in 1952, ALS operates two divisions: commodities and life sciences. ALS commodities traditionally generated the majority of underlying earnings, providing geochemistry, metallurgy, inspection, and mine site services for the global mining industry. Expansion into environmental, pharmaceutical, and food testing areas has lessened earnings exposure to commodities.
88GF Score
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