Ignite (ASX:IGN) Operating Margin %: 0.70% (As of Dec. 2025)


ASX:IGN Ignite Ltd ASX:IGN
46 GF Score
Price A$0.71
GF Value A$0.38
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Ignite Operating Margin %?

Ignite ASX:IGN 46 Operating Margin % is 0.70% as of Dec. 2025. GuruFocus rates ASX:IGN with a GF Score™ of 46/100 and a GF Value™ of A$0.38 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,070 Business Services companies, Ignite ranks worse than 73.64% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Ignite's Operating Income for the six months ended in Dec. 2025 was A$0.27 Mil. Ignite's Revenue for the six months ended in Dec. 2025 was A$38.25 Mil. Therefore, Ignite's Operating Margin % for the quarter that ended in Dec. 2025 was 0.70%.

The historical rank and industry rank for Ignite's Operating Margin % or its related term are showing as below:

ASX:IGN' s Operating Margin % Range Over the Past 10 Years
Min: -4.27   Med: -0.84   Max: 1.28
Current: 1.04


ASX:IGN's Operating Margin % is ranked worse than
73.64% of 1070 companies
in the Business Services industry
Industry Median: 6.33 vs ASX:IGN: 1.04

Ignite's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Ignite's Operating Income for the six months ended in Dec. 2025 was A$0.27 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$0.85 Mil.


Ignite  (ASX:IGN) 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 Nokia’s 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.


Ignite Operating Margin % Related Terms


Ignite Operating Margin % Historical Data

* Premium members only.

The historical data trend for Ignite'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.

Ignite Operating Margin % Chart

Ignite Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.00 -0.09 -0.77 0.72 1.28

Ignite Semi-Annual Data
Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.63 0.82 1.23 1.34 0.70

ASX:IGN vs KFY, RHI, TNET: Operating Margin % Comparison

For the Staffing & Employment Services subindustry, Ignite'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.


Ignite Operating Margin % vs Business Services Industry

For the Business Services industry and Industrials sector, Ignite's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Ignite's Operating Margin % falls into.


ASX:IGN
46GF Score
Ignite Ltd ASX:IGN
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Ignite 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.

Ignite's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as

Operating Margin %=Operating Income (A: Jun. 2025 ) / Revenue (A: Jun. 2025 )
=1.155 / 90.156
=1.28 %

Ignite's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=0.266 / 38.25
=0.70 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 0.70% mean?
Ignite (ASX:IGN) has a Operating Margin % of 0.70% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Ignite and its competitors. According to the industry distribution chart, Ignite ranks #788 out of 1070 companies in the Business Services industry, placing it in the top 73.6%.
Is Ignite's Operating Margin % too high?
Ignite's current Operating Margin % is 0.70%. The Business Services industry median Operating Margin % is 6.33. Ignite's value of 0.70% is 88.9% below this industry median. Based on the distribution chart, Ignite ranks #788 out of 1070 companies in the Business Services industry, which is below the industry midpoint. Overall, Ignite has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ignite's Operating Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, Ignite ranks #788 out of 1070 companies for Operating Margin %. This places Ignite in the lower half of its industry. The industry median Operating Margin % is 6.33. Ignite's value of 0.70% is 88.9% below 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 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. Ignite's current Operating Margin % of 0.70% is 88.9% below 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 Ignite 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. Ignite's current Operating Margin % is 0.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ignite stock overvalued right now?
Based on GuruFocus' analysis, Ignite (ASX:IGN) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.38, compared to a current price of A$0.71 — trading 86.8% above its estimated fair value. The current Operating Margin % is 0.70% and 88.9% below the Business Services industry median of 6.33. Ignite's overall GF Score™ is 46/100 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 Ignite (ASX:IGN), the current Operating Margin % is 0.70% 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 Ignite (ASX:IGN) Overvalued in 2026?

Based on GuruFocus' analysis, Ignite stock appears to be overvalued. The current stock price of A$0.71 is trading 86.8% above its estimated GF Value™ of A$0.38. GuruFocus considers Ignite to be Significantly Overvalued.

Key valuation signals for ASX:IGN:

  • Operating Margin %: 0.70%
  • GF Value™: A$0.38 vs. price of A$0.71 (86.8% above fair value)
  • GF Score™: 46/100 with 2 warning signs
  • Industry Position: 88.9% below the Business Services median (#788 of 1070)

No single metric tells the full story. See the ASX:IGN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Ignite Business Description

Address 200 George Street, Level 32, Sydney, NSW, AUS, 2000
Ignite Ltd is a professional employment services provider, specializing in permanent, contract, and temporary placements across all levels of seniority. The company segments include Specialist Recruitment and Managed Services. Its geographic areas are Australia and New Zealand. The company generates maximum revenue from Specialist Recruitment.
46GF Score

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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

A$0.71
Price
A$0.38
GF Value