AUB GroupASX:AUB +0.07%85 Operating Margin % is 16.39% as of Dec. 2025, which is 9% above its 10-year median of 14.99. GuruFocus rates ASX:AUB with a GF Score™ of 85/100 and a GF Value™ of A$49.04 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 65 Insurance companies, AUB Group ranks better than 69.23% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. AUB Group's Operating Income for the
six
months ended in Dec. 2025 was A$88 Mil. AUB Group's Revenue for the
six
months ended in Dec. 2025 was A$535 Mil. Therefore, AUB Group's Operating Margin % for the quarter that ended in Dec. 2025 was 16.39%.
Good Sign:
AUB Group Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for AUB Group's Operating Margin % or its related term are showing as below:
ASX:AUB'
s Operating Margin % Range Over the Past 10 Years
Min: 11.45 Med: 14.99 Max: 19.81
Current: 19.8
ASX:AUB's Operating Margin % is ranked better than 69.23% of 65
companies
in the Insurance industry
Industry Median: 11.8
vs ASX:AUB: 19.80
AUB Group's 5-Year Average Operating Margin % Growth Rate was 0.10% per year.
AUB Group's Operating Income for the
six
months ended in Dec. 2025 was A$88 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$216 Mil.
AUB Group (ASX:AUB) 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.
AUB Group Operating Margin % Related Terms
AUB Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for AUB 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.
ASX:AUB vs MRSH, AON, AJG: Operating Margin % Comparison
For the Insurance Brokers subindustry, AUB 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.
AUB Group Operating Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, AUB Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where AUB Group'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.
AUB Group'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.
AUB Group (ASX:AUB) has a Operating Margin % of 16.39% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on AUB Group and its competitors. This is near median its historical median of 14.99. Over the past decade, AUB Group's Operating Margin % has ranged from 11.45 to 19.81. According to the industry distribution chart, AUB Group ranks #20 out of 65 companies in the Insurance industry, placing it in the top 30.8%.
Is AUB Group's Operating Margin % too high?
AUB Group's current Operating Margin % of 16.39% is near median its 10-year median of 14.99. Over the past 10 years, this metric has ranged from a low of 11.45 to a high of 19.81. The Insurance industry median Operating Margin % is 11.80. AUB Group's value of 16.39% is 38.9% above this industry median. Based on the distribution chart, AUB Group ranks #20 out of 65 companies in the Insurance industry, which is above the industry midpoint. Overall, AUB Group has a GF Score™ of 85/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does AUB Group's Operating Margin % compare to MRSH and AON?
According to the Insurance industry distribution chart, AUB Group ranks #20 out of 65 companies for Operating Margin %. This puts AUB Group in the upper half of its industry. The industry median Operating Margin % is 11.80. AUB Group's value of 16.39% is 38.9% above this benchmark. Historically, AUB Group's own Operating Margin % has ranged from 11.45 to 19.81 over the past decade. While the company's 10-year median is 14.99 vs. the industry median of 11.80, AUB Group 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 Insurance company?
The median Operating Margin % among Insurance companies is 11.80, based on 65 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. AUB Group's current Operating Margin % of 16.39% is 38.9% 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 AUB Group and its competitors. For the Insurance industry, the median Operating Margin % is 11.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. AUB Group's current Operating Margin % is 16.39%, which is near median its own 10-year median of 14.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is AUB Group stock overvalued right now?
Based on GuruFocus' analysis, AUB Group (ASX:AUB) is currently considered Possible Value Trap. The stock's GF Value™ is A$49.04, compared to a current price of A$28.06 — trading 42.8% below its estimated fair value. The current Operating Margin % is 16.39%, which is near median its 10-year median of 14.99 and 38.9% above the Insurance industry median of 11.80. AUB Group's overall GF Score™ is 85/100 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 AUB Group (ASX:AUB), the current Operating Margin % is 16.39% 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 AUB Group (ASX:AUB) Overvalued in 2026?
Based on GuruFocus' analysis, AUB Group stock appears to be undervalued.
The current stock price of A$28.06 is trading 42.8% below its estimated GF Value™ of A$49.04.
GuruFocus considers AUB Group to be Possible Value Trap.
Key valuation signals for ASX:AUB:
Operating Margin %: 16.39% (near median its 10-year median of 14.99)
GF Value™: A$49.04 vs. price of A$28.06 (42.8% below fair value)
Industry Position: 38.9% above the Insurance median (#20 of 65)
No single metric tells the full story. See the ASX:AUB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
AUB Group is the second-largest general insurance broker network in Australia and New Zealand. It has an ownership in brokerage businesses that collectively write over AUD 5 billion in premiums. It also owns equity stakes in 35 underwriting agencies. AUB derives revenue from commissions (from insurers, ultimately paid for by AUB's customers), based on gross written premium from agencies it owns, and a share of profits from associates and joint ventures. GWP is split among personal (3%), small to medium enterprises (70%), and corporates (27%).
85GF Score
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