Embark Early Education Ltd has never been profitable in the past 3 years. It lost money every year.
Embark Early Education (ASX:EVO) 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.
Embark Early Education Operating Margin % Related Terms
Embark Early Education Operating Margin % Historical Data
* Premium members only.
The historical data trend for Embark Early Education'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:EVO vs EDU, TAL, GHC: Operating Margin % Comparison
For the Education & Training Services subindustry, Embark Early Education'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.
Embark Early Education Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Embark Early Education's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Embark Early Education's Operating Margin % falls into.
Embark Early Education 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.
Embark Early Education'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.
Embark Early Education (ASX:EVO) has a Operating Margin % of 372.59% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Embark Early Education and its competitors. According to the industry distribution chart, Embark Early Education ranks #251 out of 258 companies in the Education industry, placing it in the top 97.3%.
Is Embark Early Education's Operating Margin % too high?
Embark Early Education's current Operating Margin % is 372.59%. The Education industry median Operating Margin % is 9.46. Embark Early Education's value of 372.59% is 3838.6% above this industry median. Based on the distribution chart, Embark Early Education ranks #251 out of 258 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Embark Early Education has a GF Score™ of 25/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Embark Early Education's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Embark Early Education ranks #251 out of 258 companies for Operating Margin %. This places Embark Early Education in the lower half of its industry. The industry median Operating Margin % is 9.46. Embark Early Education's value of 372.59% is 3838.6% above 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 an Education company?
The median Operating Margin % among Education companies is 9.46, based on 258 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. Embark Early Education's current Operating Margin % of 372.59% is 3838.6% 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 Embark Early Education and its competitors. For the Education industry, the median Operating Margin % is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Embark Early Education's current Operating Margin % is 372.59%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Embark Early Education stock overvalued right now?
Based on GuruFocus' analysis, Embark Early Education (ASX:EVO) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.90, compared to a current price of A$0.40 — trading 55.6% below its estimated fair value. The current Operating Margin % is 372.59% and 3838.6% above the Education industry median of 9.46. Embark Early Education's overall GF Score™ is 25/100 with 7 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 Embark Early Education (ASX:EVO), the current Operating Margin % is 372.59% 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 Embark Early Education (ASX:EVO) Overvalued in 2026?
Based on GuruFocus' analysis, Embark Early Education stock appears to be undervalued.
The current stock price of A$0.40 is trading 55.6% below its estimated GF Value™ of A$0.90.
GuruFocus considers Embark Early Education to be Possible Value Trap.
Key valuation signals for ASX:EVO:
Operating Margin %: 372.59%
GF Value™: A$0.90 vs. price of A$0.40 (55.6% below fair value)
Industry Position: 3838.6% above the Education median (#251 of 258)
No single metric tells the full story. See the ASX:EVO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Embark Early Education Ltd is a company that is engaged in the provision and management of an early childhood education service that gives parents and caregivers the option of which service suits their child's learning and care needs. The company is engaged in operation of childcare centres in Australia. The company owns and operates childcare centers. It has centers in Queensland, Victoria, New South Wales, Tasmania and South Australia.
25GF Score
Get the complete analysis for ASX:EVO
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:EVO has been successfully added to your 
