Nine Entertainment Co. HoldingsASX:NEC -1.64%66 Operating Margin % is 6.40% as of Dec. 2025, which is 25% above its 10-year median of 5.10. GuruFocus rates ASX:NEC with a GF Score™ of 66/100 and a GF Value™ of A$1.34 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,023 Media - Diversified companies, Nine Entertainment Co. Holdings ranks worse than 51.03% on this metric.
Nine Entertainment Co. Holdings (ASX:NEC) 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.
Nine Entertainment Co. Holdings Operating Margin % Related Terms
Nine Entertainment Co. Holdings 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.
Nine Entertainment Co. Holdings Operating Margin % Chart
ASX:NEC vs NFLX, DIS, WBD: Operating Margin % Comparison
For the Entertainment subindustry, Nine Entertainment Co. 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.
Nine Entertainment Co. Holdings Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Nine Entertainment Co. Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nine Entertainment Co. Holdings's Operating Margin % falls into.
Nine Entertainment Co. Holdings 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.
* 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.
Nine Entertainment Co. Holdings (ASX:NEC) has a Operating Margin % of 6.40% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nine Entertainment Co. Holdings and its competitors. This is 25% above median its historical median of 5.10. According to the industry distribution chart, Nine Entertainment Co. Holdings ranks #522 out of 1023 companies in the Media - Diversified industry, placing it in the top 51%.
Is Nine Entertainment Co. Holdings' Operating Margin % too high?
Nine Entertainment Co. Holdings' current Operating Margin % of 6.40% is 25% above median its 10-year median of 5.10. The Media - Diversified industry median Operating Margin % is 2.51. Nine Entertainment Co. Holdings' value of 6.40% is 155% above this industry median. Based on the distribution chart, Nine Entertainment Co. Holdings ranks #522 out of 1023 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Nine Entertainment Co. Holdings has a GF Score™ of 66/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Nine Entertainment Co. Holdings' Operating Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Nine Entertainment Co. Holdings ranks #522 out of 1023 companies for Operating Margin %. This places Nine Entertainment Co. Holdings in the lower half of its industry. The industry median Operating Margin % is 2.51. Nine Entertainment Co. Holdings' value of 6.40% is 155% above this benchmark. While the company's 10-year median is 5.10 vs. the industry median of 2.51, Nine Entertainment Co. 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 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. Nine Entertainment Co. Holdings's current Operating Margin % of 6.40% is 155% 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 Nine Entertainment Co. Holdings and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nine Entertainment Co. Holdings's current Operating Margin % is 6.40%, which is 25% above median its own 10-year median of 5.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nine Entertainment Co. Holdings stock overvalued right now?
Based on GuruFocus' analysis, Nine Entertainment Co. Holdings (ASX:NEC) is currently considered Possible Value Trap. The stock's GF Value™ is A$1.34, compared to a current price of A$0.90 — trading 32.8% below its estimated fair value. The current Operating Margin % is 6.40%, which is 25% above median its 10-year median of 5.10 and 155% above the Media - Diversified industry median of 2.51. Nine Entertainment Co. Holdings' overall GF Score™ is 66/100 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 Nine Entertainment Co. Holdings (ASX:NEC), the current Operating Margin % is 6.40% 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 Nine Entertainment Co. Holdings (ASX:NEC) Overvalued in 2026?
Based on GuruFocus' analysis, Nine Entertainment Co. Holdings stock appears to be undervalued.
The current stock price of A$0.90 is trading 32.8% below its estimated GF Value™ of A$1.34.
GuruFocus considers Nine Entertainment Co. Holdings to be Possible Value Trap.
Key valuation signals for ASX:NEC:
Operating Margin %: 6.40% (25% above median its 10-year median of 5.10)
GF Value™: A$1.34 vs. price of A$0.90 (32.8% below fair value)
Industry Position: 155% above the Media - Diversified median (#522 of 1023)
No single metric tells the full story. See the ASX:NEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nine Entertainment Co. Holdings Business Description
Nine Entertainment is the largest media conglomerate in Australia. It operates Nine Network, a free-to-air TV network across five capital cities, as well as in a number of regional areas. It owns 9Now, a leading broadcast video on demand, or BVOD, business. Its publishing unit is the second-largest newspaper group in Australia with key mastheads such as Australian Financial Review, Sydney Morning Herald, and The Age. Nine also operates a leading domestic-owned subscription video on demand, or SVOD, business in Australia called Stan, and a talk-based radio network. In March 2026, Nine completed the purchase of outdoor advertising entity QMS Media for AUD 850 million.
66GF Score
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