Kip McGrath Education CentresASX:KME +2.17%60 Operating Margin % is 14.99% as of Dec. 2025, which is 34% above its 10-year median of 11.16. GuruFocus rates ASX:KME with a GF Score™ of 60/100 and a GF Value™ of A$0.55 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 255 Education companies, Kip McGrath Education Centres ranks better than 55.69% on this metric.
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.
Kip McGrath Education Centres Operating Margin % Related Terms
Kip McGrath Education Centres Operating Margin % Historical Data
* 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:KME vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, Kip McGrath Education Centres'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.
Kip McGrath Education Centres Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Kip McGrath Education Centres's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kip McGrath Education Centres'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.
* 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.
Kip McGrath Education Centres (ASX:KME) has a Operating Margin % of 14.99% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kip McGrath Education Centres and its competitors. This is 34% above median its historical median of 11.16. Over the past decade, Kip McGrath Education Centres' Operating Margin % has ranged from 5.43 to 21.07. According to the industry distribution chart, Kip McGrath Education Centres ranks #113 out of 255 companies in the Education industry, placing it in the top 44.3%.
Is Kip McGrath Education Centres' Operating Margin % too high?
Kip McGrath Education Centres' current Operating Margin % of 14.99% is 34% above median its 10-year median of 11.16. Over the past 10 years, this metric has ranged from a low of 5.43 to a high of 21.07. The Education industry median Operating Margin % is 9.59. Kip McGrath Education Centres' value of 14.99% is 56.3% above this industry median. Based on the distribution chart, Kip McGrath Education Centres ranks #113 out of 255 companies in the Education industry, which is above the industry midpoint. Overall, Kip McGrath Education Centres has a GF Score™ of 60/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kip McGrath Education Centres' Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Kip McGrath Education Centres ranks #113 out of 255 companies for Operating Margin %. This puts Kip McGrath Education Centres in the upper half of its industry. The industry median Operating Margin % is 9.59. Kip McGrath Education Centres' value of 14.99% is 56.3% above this benchmark. Historically, Kip McGrath Education Centres' own Operating Margin % has ranged from 5.43 to 21.07 over the past decade. While the company's 10-year median is 11.16 vs. the industry median of 9.59, Kip McGrath Education Centres 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 9.59, based on 255 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. Kip McGrath Education Centres's current Operating Margin % of 14.99% is 56.3% 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 Kip McGrath Education Centres and its competitors. For the Education industry, the median Operating Margin % is 9.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kip McGrath Education Centres's current Operating Margin % is 14.99%, which is 34% above median its own 10-year median of 11.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kip McGrath Education Centres stock overvalued right now?
Based on GuruFocus' analysis, Kip McGrath Education Centres (ASX:KME) is currently considered Modestly Undervalued. The stock's GF Value™ is A$0.55, compared to a current price of A$0.47 — trading 14.5% below its estimated fair value. The current Operating Margin % is 14.99%, which is 34% above median its 10-year median of 11.16 and 56.3% above the Education industry median of 9.59. Kip McGrath Education Centres' overall GF Score™ is 60/100 with 4 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 Kip McGrath Education Centres (ASX:KME), the current Operating Margin % is 14.99% 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 Kip McGrath Education Centres (ASX:KME) Overvalued in 2026?
Based on GuruFocus' analysis, Kip McGrath Education Centres stock appears to be undervalued.
The current stock price of A$0.47 is trading 14.5% below its estimated GF Value™ of A$0.55.
GuruFocus considers Kip McGrath Education Centres to be Modestly Undervalued.
Key valuation signals for ASX:KME:
Operating Margin %: 14.99% (34% above median its 10-year median of 11.16)
GF Value™: A$0.55 vs. price of A$0.47 (14.5% below fair value)
Industry Position: 56.3% above the Education median (#113 of 255)
No single metric tells the full story. See the ASX:KME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kip McGrath Education Centres Business Description
Kip McGrath Education Centres Ltd offers supplementary education to students through the franchise in Australia and overseas, in the United Kingdom and New Zealand. Its products are face-to-face tuition programs, direct at-home educational products, and online tertiary courses. Geographically, the company operates in Australasia, the United Kingdom and Europe, and Other overseas regions. It derives revenue from franchise fees, student lesson fees, sales of master territories and franchise centers, and direct sales, of which a majority of the revenue is derived from franchise fees.
60GF Score
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