Macmahon HoldingsASX:MAH +0.52%62 Operating Margin % is 6.27% as of Dec. 2025, which is 24% above its 10-year median of 5.04. GuruFocus rates ASX:MAH with a GF Score™ of 62/100 and a GF Value™ of A$0.35 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 841 Metals & Mining companies, Macmahon Holdings ranks better than 50.89% 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.
Macmahon Holdings Operating Margin % Related Terms
Macmahon Holdings Operating Margin % Historical Data
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The historical data trend for Macmahon Holdings'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 Other Industrial Metals & Mining subindustry, Macmahon Holdings'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.
Macmahon Holdings Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Macmahon Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Macmahon Holdings'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.
Macmahon Holdings'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.
Macmahon Holdings (ASX:MAH) has a Operating Margin % of 6.27% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Macmahon Holdings and its competitors. This is 24% above median its historical median of 5.04. According to the industry distribution chart, Macmahon Holdings ranks #413 out of 841 companies in the Metals & Mining industry, placing it in the top 49.1%.
Is Macmahon Holdings' Operating Margin % too high?
Macmahon Holdings' current Operating Margin % of 6.27% is 24% above median its 10-year median of 5.04. The Metals & Mining industry median Operating Margin % is 5.79. Macmahon Holdings' value of 6.27% is 8.3% above this industry median. Based on the distribution chart, Macmahon Holdings ranks #413 out of 841 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Macmahon Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Macmahon Holdings' Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Macmahon Holdings ranks #413 out of 841 companies for Operating Margin %. This puts Macmahon Holdings in the upper half of its industry. The industry median Operating Margin % is 5.79. Macmahon Holdings' value of 6.27% is 8.3% above this benchmark. While the company's 10-year median is 5.04 vs. the industry median of 5.79, Macmahon Holdings 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.79, based on 841 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. Macmahon Holdings's current Operating Margin % of 6.27% is 8.3% 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 Macmahon Holdings and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Macmahon Holdings's current Operating Margin % is 6.27%, which is 24% above median its own 10-year median of 5.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Macmahon Holdings stock overvalued right now?
Based on GuruFocus' analysis, Macmahon Holdings (ASX:MAH) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.35, compared to a current price of A$0.96 — trading 174.3% above its estimated fair value. The current Operating Margin % is 6.27%, which is 24% above median its 10-year median of 5.04 and 8.3% above the Metals & Mining industry median of 5.79. Macmahon Holdings' overall GF Score™ is 62/100 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 Macmahon Holdings (ASX:MAH), the current Operating Margin % is 6.27% 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 Macmahon Holdings (ASX:MAH) Overvalued in 2026?
Based on GuruFocus' analysis, Macmahon Holdings stock appears to be overvalued.
The current stock price of A$0.96 is trading 174.3% above its estimated GF Value™ of A$0.35.
GuruFocus considers Macmahon Holdings to be Significantly Overvalued.
Key valuation signals for ASX:MAH:
Operating Margin %: 6.27% (24% above median its 10-year median of 5.04)
GF Value™: A$0.35 vs. price of A$0.96 (174.3% above fair value)
Industry Position: 8.3% above the Metals & Mining median (#413 of 841)
No single metric tells the full story. See the ASX:MAH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Macmahon Holdings Ltd is an Australian company providing mining services to clients throughout Australia, Southeast Asia, and South Africa. Its cend-to-end mining services encompass mine development and materials delivery through to engineering, civil construction, on-site mining services, rehabilitation, site remediation, training and equipment maintenance, and refurbishment services. Its segments are Surface Mining, Underground Mining, International Mining, and Civil Infrastructure. It provides a complete set of mining services which includes surface and underground mining, civil and rehabilitation services, equipment maintenance, rentals and management.
62GF Score
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