Nido EducationASX:NDO 18 Operating Margin % is 15.25% as of Dec. 2025, which is 142% above its 10-year median of 6.31. GuruFocus rates ASX:NDO with a GF Score™ of 18/100. The stock has 8 warning signs investors should review. Among 258 Education companies, Nido Education ranks better than 58.91% 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.
Nido Education Operating Margin % Related Terms
Nido Education Operating Margin % Historical Data
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The historical data trend for Nido Education'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:NDO vs EDU, TAL, GHC: Operating Margin % Comparison
For the Education & Training Services subindustry, Nido Education'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.
Nido Education Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Nido Education's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nido Education'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.
Nido Education'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.
Nido Education (ASX:NDO) has a Operating Margin % of 15.25% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nido Education and its competitors. This is 142% above median its historical median of 6.31. According to the industry distribution chart, Nido Education ranks #106 out of 258 companies in the Education industry, placing it in the top 41.1%.
Is Nido Education's Operating Margin % too high?
Nido Education's current Operating Margin % of 15.25% is 142% above median its 10-year median of 6.31. The Education industry median Operating Margin % is 9.46. Nido Education's value of 15.25% is 61.2% above this industry median. Based on the distribution chart, Nido Education ranks #106 out of 258 companies in the Education industry, which is above the industry midpoint. Overall, Nido Education has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does Nido Education's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Nido Education ranks #106 out of 258 companies for Operating Margin %. This puts Nido Education in the upper half of its industry. The industry median Operating Margin % is 9.46. Nido Education's value of 15.25% is 61.2% above this benchmark. While the company's 10-year median is 6.31 vs. the industry median of 9.46, Nido Education 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 9.46, based on 258 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. Nido Education's current Operating Margin % of 15.25% is 61.2% 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 Nido Education and its competitors. For the Education industry, the median Operating Margin % is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nido Education's current Operating Margin % is 15.25%, which is 142% above median its own 10-year median of 6.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nido Education stock overvalued right now?
Nido Education (ASX:NDO) has a current Operating Margin % of 15.25%. The current Operating Margin % is 15.25%, which is 142% above median its 10-year median of 6.31 and 61.2% above the Education industry median of 9.46. Nido Education's overall GF Score™ is 18/100 with 8 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 Nido Education (ASX:NDO), the current Operating Margin % is 15.25% 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.
Nido Education Ltd is a national owner, operator and manager of long-day early childhood education and care services. It offers exceptional education and care for children, from six weeks, through to school age, in a safe, comfortable, nurturing and peaceful environment. The Group operates in one segment being child care services.
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