NextEd GroupASX:NXD -3.53% Operating Margin % is 0.99% as of Dec. 2025. The stock has 3 warning signs investors should review. Among 258 Education companies, NextEd Group ranks worse than 79.46% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. NextEd Group's Operating Income for the
six
months ended in Dec. 2025 was A$0.45 Mil. NextEd Group's Revenue for the
six
months ended in Dec. 2025 was A$45.66 Mil. Therefore, NextEd Group's Operating Margin % for the quarter that ended in Dec. 2025 was 0.99%.
The historical rank and industry rank for NextEd Group's Operating Margin % or its related term are showing as below:
ASX:NXD'
s Operating Margin % Range Over the Past 10 Years
Min: -118.03 Med: -20.1 Max: 4.55
Current: -1.33
ASX:NXD's Operating Margin % is ranked worse than 79.46% of 258
companies
in the Education industry
Industry Median: 9.46
vs ASX:NXD: -1.33
NextEd Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
NextEd Group's Operating Income for the
six
months ended in Dec. 2025 was A$0.45 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$-1.26 Mil.
NextEd Group (ASX:NXD) 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.
NextEd Group Operating Margin % Related Terms
NextEd Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for NextEd Group'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:NXD vs EDU, TAL, GHC: Operating Margin % Comparison
For the Education & Training Services subindustry, NextEd Group'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.
NextEd Group Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, NextEd Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where NextEd Group'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.
NextEd Group'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.
NextEd Group (ASX:NXD) has a Operating Margin % of 0.99% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on NextEd Group and its competitors. According to the industry distribution chart, NextEd Group ranks #205 out of 258 companies in the Education industry, placing it in the top 79.5%.
Is NextEd Group's Operating Margin % too high?
NextEd Group's current Operating Margin % is 0.99%. The Education industry median Operating Margin % is 9.46. NextEd Group's value of 0.99% is 89.5% below this industry median. Based on the distribution chart, NextEd Group ranks #205 out of 258 companies in the Education industry, which is in the bottom quartile relative to peers.
How does NextEd Group's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, NextEd Group ranks #205 out of 258 companies for Operating Margin %. This places NextEd Group in the lower half of its industry. The industry median Operating Margin % is 9.46. NextEd Group's value of 0.99% is 89.5% 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 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. NextEd Group's current Operating Margin % of 0.99% is 89.5% 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 NextEd Group 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. NextEd Group's current Operating Margin % is 0.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is NextEd Group stock overvalued right now?
Based on GuruFocus' analysis, NextEd Group (ASX:NXD) is currently considered Possible Value Trap. The stock's GF Value™ is A$0.23, compared to a current price of A$0.08 — trading 64.3% below its estimated fair value. The current Operating Margin % is 0.99% and 89.5% below the Education industry median of 9.46. 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 NextEd Group (ASX:NXD), the current Operating Margin % is 0.99% 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.
NextEd Group Ltd is engaged in the provision of vocational education and training solutions. It is a listed private education provider, delivering learning experiences through a national campus network across Adelaide, Brisbane, Gold Coast, Melbourne, Perth, and Sydney. NextEd offers courses across the English Language, Vocational, and Higher Education sectors, spanning industries including business, technology, design, hospitality, health, and community services. In addition, it provides education recruitment agency services to international students. The group's operating segments are: International, which generates maximum revenue, Technology and Design, Domestic Vocational, and Go Study. Geographically, it generates maximum revenue from Australia, followed by Europe and South America.
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