Babylon Pump & PowerASX:BPP Operating Margin % is 2.63% as of Dec. 2025. The stock has 4 warning signs investors should review. Among 1,070 Business Services companies, Babylon Pump & Power ranks worse than 57.2% on this metric.
Babylon Pump & Power (ASX:BPP) 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.
Babylon Pump & Power Operating Margin % Related Terms
Babylon Pump & Power Operating Margin % Historical Data
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The historical data trend for Babylon Pump & Power'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:BPP vs URI, SUNB, AER: Operating Margin % Comparison
For the Rental & Leasing Services subindustry, Babylon Pump & Power'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.
Babylon Pump & Power Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Babylon Pump & Power's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Babylon Pump & Power's Operating Margin % falls into.
Babylon Pump & Power 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.
Babylon Pump & Power'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.
Babylon Pump & Power (ASX:BPP) has a Operating Margin % of 2.63% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Babylon Pump & Power and its competitors. According to the industry distribution chart, Babylon Pump & Power ranks #612 out of 1070 companies in the Business Services industry, placing it in the top 57.2%.
Is Babylon Pump & Power's Operating Margin % too high?
Babylon Pump & Power's current Operating Margin % is 2.63%. The Business Services industry median Operating Margin % is 6.33. Babylon Pump & Power's value of 2.63% is 58.5% below this industry median. Based on the distribution chart, Babylon Pump & Power ranks #612 out of 1070 companies in the Business Services industry, which is below the industry midpoint.
How does Babylon Pump & Power's Operating Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Babylon Pump & Power ranks #612 out of 1070 companies for Operating Margin %. This places Babylon Pump & Power in the lower half of its industry. The industry median Operating Margin % is 6.33. Babylon Pump & Power's value of 2.63% is 58.5% below this benchmark. 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. Babylon Pump & Power's current Operating Margin % of 2.63% is 58.5% 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 Babylon Pump & Power 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. Babylon Pump & Power's current Operating Margin % is 2.63%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Babylon Pump & Power stock overvalued right now?
Babylon Pump & Power (ASX:BPP) has a current Operating Margin % of 2.63%. The stock's GF Value™ is A$0.10, compared to a current price of A$0.08 — trading 22.5% below its estimated fair value. The current Operating Margin % is 2.63% and 58.5% below the Business Services industry median of 6.33. 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 Babylon Pump & Power (ASX:BPP), the current Operating Margin % is 2.63% 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.
Babylon Pump & Power Ltd is an Australia-based provider of rental equipment. Babylon considers its two business units as its reporting segments. The Maintenance segment focuses on rebuild and maintenance services for large diesel driven equipment including field service work and high-pressure water blasting and ancillary services to the resources sector. The Rental segment provides rental services of specialty diesel driven pumping and power generation equipment. Geographically, it operates only in Australia.
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