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.
Credit Intelligence Operating Margin % Related Terms
Credit Intelligence Operating Margin % Historical Data
* Premium members only.
The historical data trend for Credit Intelligence'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:CI1 vs CTAS, CPRT, GPN: Operating Margin % Comparison
For the Specialty Business Services subindustry, Credit Intelligence'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.
Credit Intelligence Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Credit Intelligence's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Credit Intelligence'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.
Credit Intelligence'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.
Credit Intelligence (ASX:CI1) has a Operating Margin % of 113.66% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Credit Intelligence and its competitors. This is 610% above median its historical median of 16.01.
Is Credit Intelligence's Operating Margin % too high?
Credit Intelligence's current Operating Margin % of 113.66% is 610% above median its 10-year median of 16.01. The Business Services industry median Operating Margin % is 6.33. Credit Intelligence's value of 113.66% is 1695.6% above this industry median. Overall, Credit Intelligence has a GF Score™ of 43/100, reflecting its overall financial health beyond just this single metric.
How does Credit Intelligence's Operating Margin % compare to CTAS and CPRT?
Credit Intelligence's Operating Margin % of 113.66% can be compared against companies in the Business Services industry. The industry median Operating Margin % is 6.33. Credit Intelligence's value of 113.66% is 1695.6% above this benchmark. While the company's 10-year median is 16.01 vs. the industry median of 6.33, Credit Intelligence 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. Credit Intelligence's current Operating Margin % of 113.66% is 1695.6% 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 Credit Intelligence 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. Credit Intelligence's current Operating Margin % is 113.66%, which is 610% above median its own 10-year median of 16.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Credit Intelligence stock overvalued right now?
Credit Intelligence (ASX:CI1) has a current Operating Margin % of 113.66%. The stock's GF Value™ is A$0.17, compared to a current price of A$0.11 — trading 35.3% below its estimated fair value. The current Operating Margin % is 113.66%, which is 610% above median its 10-year median of 16.01 and 1695.6% above the Business Services industry median of 6.33. Credit Intelligence's overall GF Score™ is 43/100 with 6 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 Credit Intelligence (ASX:CI1), the current Operating Margin % is 113.66% 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 Credit Intelligence (ASX:CI1) Overvalued in 2026?
Based on GuruFocus' analysis, Credit Intelligence stock appears to be undervalued.
The current stock price of A$0.11 is trading 35.3% below its estimated GF Value™ of A$0.17.
Key valuation signals for ASX:CI1:
Operating Margin %: 113.66% (610% above median its 10-year median of 16.01)
GF Value™: A$0.17 vs. price of A$0.11 (35.3% below fair value)
Industry Position: 1695.6% above the Business Services median
No single metric tells the full story. See the ASX:CI1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Credit Intelligence Ltd provides financial services in Australia and Singapore. The Group has two reportable segments, namely BNPL finance service and credit financing. It derives the majority of the revenue from the credit financing segment.
43GF Score
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