Rivco Australia (ASX:D2O) 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.
Rivco Australia Operating Margin % Related Terms
Rivco Australia Operating Margin % Historical Data
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The historical data trend for Rivco Australia'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:D2O vs AWK, WTRG, AWR: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, Rivco Australia'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.
Rivco Australia Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Rivco Australia's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rivco Australia'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.
Rivco Australia's Operating Margin % for the fiscal year that ended in Dec. 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.
Rivco Australia (ASX:D2O) has a Operating Margin % of 76.24% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Rivco Australia and its competitors. This is 49% above median its historical median of 51.31. Over the past decade, Rivco Australia's Operating Margin % has ranged from 14.67 to 81.53.
Is Rivco Australia's Operating Margin % too high?
Rivco Australia's current Operating Margin % of 76.24% is 49% above median its 10-year median of 51.31. Over the past 10 years, this metric has ranged from a low of 14.67 to a high of 81.53. The Utilities - Regulated industry median Operating Margin % is 14.97. Rivco Australia's value of 76.24% is 409.3% above this industry median. Overall, Rivco Australia has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Rivco Australia's Operating Margin % compare to AWK and WTRG?
Rivco Australia's Operating Margin % of 76.24% can be compared against companies in the Utilities - Regulated industry. The industry median Operating Margin % is 14.97. Rivco Australia's value of 76.24% is 409.3% above this benchmark. Historically, Rivco Australia's own Operating Margin % has ranged from 14.67 to 81.53 over the past decade. While the company's 10-year median is 51.31 vs. the industry median of 14.97, Rivco Australia 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 Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Rivco Australia's current Operating Margin % of 76.24% is 409.3% 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 Rivco Australia and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rivco Australia's current Operating Margin % is 76.24%, which is 49% above median its own 10-year median of 51.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rivco Australia stock overvalued right now?
Rivco Australia (ASX:D2O) has a current Operating Margin % of 76.24%. The stock's GF Value™ is A$1.24, compared to a current price of A$1.53 — trading 23.4% above its estimated fair value. The current Operating Margin % is 76.24%, which is 49% above median its 10-year median of 51.31 and 409.3% above the Utilities - Regulated industry median of 14.97. Rivco Australia's overall GF Score™ is 10/100 with 2 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 Rivco Australia (ASX:D2O), the current Operating Margin % is 76.24% 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 Rivco Australia (ASX:D2O) Overvalued in 2026?
Based on GuruFocus' analysis, Rivco Australia stock appears to be overvalued.
The current stock price of A$1.53 is trading 23.4% above its estimated GF Value™ of A$1.24.
Key valuation signals for ASX:D2O:
Operating Margin %: 76.24% (49% above median its 10-year median of 51.31)
GF Value™: A$1.24 vs. price of A$1.53 (23.4% above fair value)
Industry Position: 409.3% above the Utilities - Regulated median
No single metric tells the full story. See the ASX:D2O stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rivco Australia Ltd provides investors with a direct and pure exposure to Australian water markets. Rivco's primary business activity is to build a diversified portfolio of water entitlements, and through active management, generate a return by offering a range of water supply products to Australian water users. The company are partners with irrigators across the Murray-Darling Basin to deliver reliable water supply solutions. It's products help growers manage seasonal variability and allow planning decisions based on their portfolio.
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