Little Green PharmaASX:LGP Operating Margin % is 6.61% as of Mar. 2026. The stock has 3 warning signs investors should review. Among 955 Drug Manufacturers companies, Little Green Pharma ranks worse than 57.59% on this metric.
Little Green Pharma (ASX:LGP) 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.
Little Green Pharma Operating Margin % Related Terms
Little Green Pharma Operating Margin % Historical Data
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The historical data trend for Little Green Pharma'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Little Green Pharma'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.
Little Green Pharma Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Little Green Pharma's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Little Green Pharma's Operating Margin % falls into.
Little Green Pharma 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.
Little Green Pharma's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Little Green Pharma (ASX:LGP) has a Operating Margin % of 6.61% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Little Green Pharma and its competitors. According to the industry distribution chart, Little Green Pharma ranks #550 out of 955 companies in the Drug Manufacturers industry, placing it in the top 57.6%.
Is Little Green Pharma's Operating Margin % too high?
Little Green Pharma's current Operating Margin % is 6.61%. The Drug Manufacturers industry median Operating Margin % is 7.45. Little Green Pharma's value of 6.61% is 11.3% below this industry median. Based on the distribution chart, Little Green Pharma ranks #550 out of 955 companies in the Drug Manufacturers industry, which is below the industry midpoint.
How does Little Green Pharma's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Little Green Pharma ranks #550 out of 955 companies for Operating Margin %. This places Little Green Pharma in the lower half of its industry. The industry median Operating Margin % is 7.45. Little Green Pharma's value of 6.61% is 11.3% 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Little Green Pharma's current Operating Margin % of 6.61% is 11.3% 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 Little Green Pharma and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Little Green Pharma's current Operating Margin % is 6.61%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Little Green Pharma stock overvalued right now?
Based on GuruFocus' analysis, Little Green Pharma (ASX:LGP) is currently considered Significantly Undervalued. The stock's GF Value™ is A$0.17, compared to a current price of A$0.06 — trading 62.4% below its estimated fair value. The current Operating Margin % is 6.61% and 11.3% below the Drug Manufacturers industry median of 7.45. 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 Little Green Pharma (ASX:LGP), the current Operating Margin % is 6.61% as of Mar. 2026. 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.
Little Green Pharma Ltd is engaged in the vertically integrated medicinal cannabis business. The business activities of the company include cultivation, production, research and development, manufacturing, and distribution of medicinal cannabis products. The company's two key types of products available at Little Green Pharma are oils (which are ingested) and flowers (which are usually inhaled through vaporizing). It offers LGP-branded medicinal cannabis oil products in the Australian and European markets. The Group is organized into two operating segments: Australia and Europe (cultivation, production and distribution of cannabis products to Australian and European customers).
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