Energy ActionASX:EAX +3.75%45 Operating Margin % is 13.34% as of Dec. 2025, which is 73% above its 10-year median of 7.69. GuruFocus rates ASX:EAX with a GF Score™ of 45/100 and a GF Value™ of A$0.24 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,070 Business Services companies, Energy Action ranks better than 80.56% on this metric.
Energy Action (ASX:EAX) 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.
Energy Action Operating Margin % Related Terms
Energy Action Operating Margin % Historical Data
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The historical data trend for Energy Action'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:EAX vs CTAS, CPRT, GPN: Operating Margin % Comparison
For the Specialty Business Services subindustry, Energy Action'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.
Energy Action Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Energy Action's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Energy Action'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.
Energy Action'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.
Energy Action (ASX:EAX) has a Operating Margin % of 13.34% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Energy Action and its competitors. This is 73% above median its historical median of 7.69. According to the industry distribution chart, Energy Action ranks #208 out of 1070 companies in the Business Services industry, placing it in the top 19.4%.
Is Energy Action's Operating Margin % too high?
Energy Action's current Operating Margin % of 13.34% is 73% above median its 10-year median of 7.69. The Business Services industry median Operating Margin % is 6.33. Energy Action's value of 13.34% is 110.7% above this industry median. Based on the distribution chart, Energy Action ranks #208 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Energy Action has a GF Score™ of 45/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Energy Action's Operating Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Energy Action ranks #208 out of 1070 companies for Operating Margin %. This places Energy Action in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.33. Energy Action's value of 13.34% is 110.7% above this benchmark. While the company's 10-year median is 7.69 vs. the industry median of 6.33, Energy Action 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. Energy Action's current Operating Margin % of 13.34% is 110.7% 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 Energy Action 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. Energy Action's current Operating Margin % is 13.34%, which is 73% above median its own 10-year median of 7.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Energy Action stock overvalued right now?
Based on GuruFocus' analysis, Energy Action (ASX:EAX) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.24, compared to a current price of A$0.42 — trading 72.9% above its estimated fair value. The current Operating Margin % is 13.34%, which is 73% above median its 10-year median of 7.69 and 110.7% above the Business Services industry median of 6.33. Energy Action's overall GF Score™ is 45/100 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 Energy Action (ASX:EAX), the current Operating Margin % is 13.34% 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 Energy Action (ASX:EAX) Overvalued in 2026?
Based on GuruFocus' analysis, Energy Action stock appears to be overvalued.
The current stock price of A$0.42 is trading 72.9% above its estimated GF Value™ of A$0.24.
GuruFocus considers Energy Action to be Significantly Overvalued.
Key valuation signals for ASX:EAX:
Operating Margin %: 13.34% (73% above median its 10-year median of 7.69)
GF Value™: A$0.24 vs. price of A$0.42 (72.9% above fair value)
Industry Position: 110.7% above the Business Services median (#208 of 1070)
No single metric tells the full story. See the ASX:EAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Energy Action Ltd is engaged in providing integrated energy management services to a diverse base of commercial, industrial, and small and medium-sized business customers. It offers electricity and gas procurement services in Australia. The company's core services include Procurement, Energy Managed Services, Retail Services, and Other. The company has one operating segment, which provides electricity and gas procurement services, energy management, and retail billing services in Australia. The company provides various services such as Energy Buying, Energy Management, and Embedded Networks. It derives a majority of its revenues from Energy procurement.
45GF Score
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