GWA GroupASX:GWA -1.33%78 Operating Margin % is 14.50% as of Dec. 2025, which is 7% above its 10-year median of 13.51. GuruFocus rates ASX:GWA with a GF Score™ of 78/100 and a GF Value™ of A$2.45 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,767 Construction companies, GWA Group ranks better than 84.1% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. GWA Group's Operating Income for the
six
months ended in Dec. 2025 was A$31.0 Mil. GWA Group's Revenue for the
six
months ended in Dec. 2025 was A$214.1 Mil. Therefore, GWA Group's Operating Margin % for the quarter that ended in Dec. 2025 was 14.50%.
Good Sign:
GWA Group Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for GWA Group's Operating Margin % or its related term are showing as below:
ASX:GWA'
s Operating Margin % Range Over the Past 10 Years
Min: 11.56 Med: 13.51 Max: 19.78
Current: 15.09
ASX:GWA's Operating Margin % is ranked better than 84.1% of 1767
companies
in the Construction industry
Industry Median: 5.89
vs ASX:GWA: 15.09
GWA Group's 5-Year Average Operating Margin % Growth Rate was 2.50% per year.
GWA Group's Operating Income for the
six
months ended in Dec. 2025 was A$31.0 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$63.8 Mil.
GWA Group (ASX:GWA) 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.
GWA Group Operating Margin % Related Terms
GWA Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for GWA Group'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:GWA vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, GWA Group'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.
GWA Group Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, GWA Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where GWA Group'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.
GWA Group'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.
GWA Group (ASX:GWA) has a Operating Margin % of 14.50% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on GWA Group and its competitors. This is near median its historical median of 13.51. Over the past decade, GWA Group's Operating Margin % has ranged from 11.56 to 19.78. According to the industry distribution chart, GWA Group ranks #281 out of 1767 companies in the Construction industry, placing it in the top 15.9%.
Is GWA Group's Operating Margin % too high?
GWA Group's current Operating Margin % of 14.50% is near median its 10-year median of 13.51. Over the past 10 years, this metric has ranged from a low of 11.56 to a high of 19.78. The Construction industry median Operating Margin % is 5.89. GWA Group's value of 14.50% is 146.2% above this industry median. Based on the distribution chart, GWA Group ranks #281 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, GWA Group has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does GWA Group's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, GWA Group ranks #281 out of 1767 companies for Operating Margin %. This places GWA Group in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. GWA Group's value of 14.50% is 146.2% above this benchmark. Historically, GWA Group's own Operating Margin % has ranged from 11.56 to 19.78 over the past decade. While the company's 10-year median is 13.51 vs. the industry median of 5.89, GWA Group 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. GWA Group's current Operating Margin % of 14.50% is 146.2% 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 GWA Group and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GWA Group's current Operating Margin % is 14.50%, which is near median its own 10-year median of 13.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GWA Group stock overvalued right now?
Based on GuruFocus' analysis, GWA Group (ASX:GWA) is currently considered Fairly Valued. The stock's GF Value™ is A$2.45, compared to a current price of A$2.23 — trading 9% below its estimated fair value. The current Operating Margin % is 14.50%, which is near median its 10-year median of 13.51 and 146.2% above the Construction industry median of 5.89. GWA Group's overall GF Score™ is 78/100 with 3 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 GWA Group (ASX:GWA), the current Operating Margin % is 14.50% 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 GWA Group (ASX:GWA) Overvalued in 2026?
Based on GuruFocus' analysis, GWA Group stock appears to be undervalued.
The current stock price of A$2.23 is trading 9% below its estimated GF Value™ of A$2.45.
GuruFocus considers GWA Group to be Fairly Valued.
Key valuation signals for ASX:GWA:
Operating Margin %: 14.50% (near median its 10-year median of 13.51)
GF Value™: A$2.45 vs. price of A$2.23 (9% below fair value)
Industry Position: 146.2% above the Construction median (#281 of 1767)
No single metric tells the full story. See the ASX:GWA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GWA Group Ltd is an Australian designer of sanitary ware and bathroom fittings that has undergone a divestment program to focus solely on the front-of-wall bathroom and kitchen fittings markets. GWA's portfolio of brands includes Caroma, Dorf, Fowler, and Clark, with Caroma, in particular, enjoying a long history and high brand awareness in the Australian market. The company has one reportable segment, Water Solutions. This segment includes the sale of vitreous china toilet suites, basins, plastic cisterns, taps and showers, baths, kitchen sinks, laundry tubs, domestic water control valves, smart products, and bathroom accessories.
78GF Score
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