Mayfield ChildcareASX:MFD -5.88%44 Operating Margin % is 5.16% as of Dec. 2025, which is 42% below its 10-year median of 8.84. GuruFocus rates ASX:MFD with a GF Score™ of 44/100 and a GF Value™ of A$0.68 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 97 Personal Services companies, Mayfield Childcare ranks worse than 65.98% 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.
Mayfield Childcare Operating Margin % Related Terms
Mayfield Childcare Operating Margin % Historical Data
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The historical data trend for Mayfield Childcare'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:MFD vs ROL, SCI, HRB: Operating Margin % Comparison
For the Personal Services subindustry, Mayfield Childcare'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.
Mayfield Childcare Operating Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Mayfield Childcare's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mayfield Childcare'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.
Mayfield Childcare's Operating Margin % for the fiscal year that ended in Dec. 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.
Mayfield Childcare (ASX:MFD) has a Operating Margin % of 5.16% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Mayfield Childcare and its competitors. This is 42% below median its historical median of 8.84. Over the past decade, Mayfield Childcare's Operating Margin % has ranged from 1.48 to 19.04. According to the industry distribution chart, Mayfield Childcare ranks #64 out of 97 companies in the Personal Services industry, placing it in the top 66%.
Is Mayfield Childcare's Operating Margin % too high?
Mayfield Childcare's current Operating Margin % of 5.16% is 42% below median its 10-year median of 8.84. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 19.04. The Personal Services industry median Operating Margin % is 6.55. Mayfield Childcare's value of 5.16% is 21.2% below this industry median. Based on the distribution chart, Mayfield Childcare ranks #64 out of 97 companies in the Personal Services industry, which is below the industry midpoint. Overall, Mayfield Childcare has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Mayfield Childcare's Operating Margin % compare to ROL and SCI?
According to the Personal Services industry distribution chart, Mayfield Childcare ranks #64 out of 97 companies for Operating Margin %. This places Mayfield Childcare in the lower half of its industry. The industry median Operating Margin % is 6.55. Mayfield Childcare's value of 5.16% is 21.2% below this benchmark. Historically, Mayfield Childcare's own Operating Margin % has ranged from 1.48 to 19.04 over the past decade. While the company's 10-year median is 8.84 vs. the industry median of 6.55, Mayfield Childcare has consistently been below 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 Personal Services company?
The median Operating Margin % among Personal Services companies is 6.55, based on 97 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. Mayfield Childcare's current Operating Margin % of 5.16% is 21.2% 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 Mayfield Childcare and its competitors. For the Personal Services industry, the median Operating Margin % is 6.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mayfield Childcare's current Operating Margin % is 5.16%, which is 42% below median its own 10-year median of 8.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mayfield Childcare stock overvalued right now?
Based on GuruFocus' analysis, Mayfield Childcare (ASX:MFD) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.68, compared to a current price of A$0.24 — trading 64.7% below its estimated fair value. The current Operating Margin % is 5.16%, which is 42% below median its 10-year median of 8.84 and 21.2% below the Personal Services industry median of 6.55. Mayfield Childcare's overall GF Score™ is 44/100 with 7 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 Mayfield Childcare (ASX:MFD), the current Operating Margin % is 5.16% 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 Mayfield Childcare (ASX:MFD) Overvalued in 2026?
Based on GuruFocus' analysis, Mayfield Childcare stock appears to be undervalued.
The current stock price of A$0.24 is trading 64.7% below its estimated GF Value™ of A$0.68.
GuruFocus considers Mayfield Childcare to be Possible Value Trap.
Key valuation signals for ASX:MFD:
Operating Margin %: 5.16% (42% below median its 10-year median of 8.84)
GF Value™: A$0.68 vs. price of A$0.24 (64.7% below fair value)
Industry Position: 21.2% below the Personal Services median (#64 of 97)
No single metric tells the full story. See the ASX:MFD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mayfield Childcare Ltd provides a combination of care and education services for children. It operates long day childcare (LDC) centres in Victoria, Queensland, and South Australia.
44GF Score
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