G8 EducationASX:GEM 54 Operating Margin % is 13.57% as of Dec. 2025, which is 5% below its 10-year median of 14.25. GuruFocus rates ASX:GEM with a GF Score™ of 54/100 and a GF Value™ of A$1.17 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 258 Education companies, G8 Education ranks better than 55.81% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. G8 Education's Operating Income for the
six
months ended in Dec. 2025 was A$65.5 Mil. G8 Education's Revenue for the
six
months ended in Dec. 2025 was A$482.2 Mil. Therefore, G8 Education's Operating Margin % for the quarter that ended in Dec. 2025 was 13.57%.
The historical rank and industry rank for G8 Education's Operating Margin % or its related term are showing as below:
ASX:GEM'
s Operating Margin % Range Over the Past 10 Years
Min: -6.83 Med: 14.25 Max: 20.21
Current: 13.7
ASX:GEM's Operating Margin % is ranked better than 55.81% of 258
companies
in the Education industry
Industry Median: 9.345
vs ASX:GEM: 13.70
G8 Education's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
G8 Education's Operating Income for the
six
months ended in Dec. 2025 was A$65.5 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$129.7 Mil.
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.
G8 Education Operating Margin % Related Terms
G8 Education Operating Margin % Historical Data
* Premium members only.
The historical data trend for G8 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:GEM vs EDU, TAL, GHC: Operating Margin % Comparison
For the Education & Training Services subindustry, G8 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.
G8 Education Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, G8 Education's Operating Margin % distribution charts can be found below:
* The bar in red indicates where G8 Education'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.
G8 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.
G8 Education (ASX:GEM) has a Operating Margin % of 13.57% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on G8 Education and its competitors. This is near median its historical median of 14.25. According to the industry distribution chart, G8 Education ranks #114 out of 258 companies in the Education industry, placing it in the top 44.2%.
Is G8 Education's Operating Margin % too high?
G8 Education's current Operating Margin % of 13.57% is near median its 10-year median of 14.25. The Education industry median Operating Margin % is 9.35. G8 Education's value of 13.57% is 45.2% above this industry median. Based on the distribution chart, G8 Education ranks #114 out of 258 companies in the Education industry, which is above the industry midpoint. Overall, G8 Education has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does G8 Education's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, G8 Education ranks #114 out of 258 companies for Operating Margin %. This puts G8 Education in the upper half of its industry. The industry median Operating Margin % is 9.35. G8 Education's value of 13.57% is 45.2% above this benchmark. While the company's 10-year median is 14.25 vs. the industry median of 9.35, G8 Education 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 Education company?
The median Operating Margin % among Education companies is 9.35, 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. G8 Education's current Operating Margin % of 13.57% is 45.2% 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 G8 Education and its competitors. For the Education industry, the median Operating Margin % is 9.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. G8 Education's current Operating Margin % is 13.57%, which is near median its own 10-year median of 14.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is G8 Education stock overvalued right now?
Based on GuruFocus' analysis, G8 Education (ASX:GEM) is currently considered Possible Value Trap. The stock's GF Value™ is A$1.17, compared to a current price of A$0.12 — trading 89.7% below its estimated fair value. The current Operating Margin % is 13.57%, which is near median its 10-year median of 14.25 and 45.2% above the Education industry median of 9.35. G8 Education's overall GF Score™ is 54/100 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 G8 Education (ASX:GEM), the current Operating Margin % is 13.57% 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 G8 Education (ASX:GEM) Overvalued in 2026?
Based on GuruFocus' analysis, G8 Education stock appears to be undervalued.
The current stock price of A$0.12 is trading 89.7% below its estimated GF Value™ of A$1.17.
GuruFocus considers G8 Education to be Possible Value Trap.
Key valuation signals for ASX:GEM:
Operating Margin %: 13.57% (near median its 10-year median of 14.25)
GF Value™: A$1.17 vs. price of A$0.12 (89.7% below fair value)
Industry Position: 45.2% above the Education median (#114 of 258)
No single metric tells the full story. See the ASX:GEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
G8 Education Ltd is a provider of quality early learning education and care, operating under a range of trusted brands. The company has one operating segment, being the operation of child care centers. G8 does not own the buildings from which its childcare centers operate.
54GF Score
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