Pacific EdgeASX:PEB -3.85%42 Operating Margin % is -314.33% as of Mar. 2026. GuruFocus rates ASX:PEB with a GF Score™ of 42/100 and a GF Value™ of A$0.05 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 204 Medical Diagnostics & Research companies, Pacific Edge ranks worse than 87.25% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Pacific Edge's Operating Income for the
six
months ended in Mar. 2026 was A$-14.56 Mil. Pacific Edge's Revenue for the
six
months ended in Mar. 2026 was A$4.63 Mil. Therefore, Pacific Edge's Operating Margin % for the quarter that ended in Mar. 2026 was -314.33%.
Warning Sign:
Pacific Edge Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.2%.
The historical rank and industry rank for Pacific Edge's Operating Margin % or its related term are showing as below:
ASX:PEB'
s Operating Margin % Range Over the Past 10 Years
Min: -630.74 Med: -249.12 Max: -153.85
Current: -339.71
ASX:PEB's Operating Margin % is ranked worse than 87.25% of 204
companies
in the Medical Diagnostics & Research industry
Industry Median: -3.195
vs ASX:PEB: -339.71
Pacific Edge's 5-Year Average Operating Margin % Growth Rate was -4.20% per year.
Pacific Edge's Operating Income for the
six
months ended in Mar. 2026 was A$-14.56 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was A$-33.81 Mil.
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.
Pacific Edge Operating Margin % Related Terms
Pacific Edge Operating Margin % Historical Data
* Premium members only.
The historical data trend for Pacific Edge'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:PEB vs TMO, DHR, IDXX: Operating Margin % Comparison
For the Diagnostics & Research subindustry, Pacific Edge'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.
Pacific Edge Operating Margin % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Pacific Edge's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pacific Edge'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.
Pacific Edge's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Pacific Edge (ASX:PEB) has a Operating Margin % of -314.33% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pacific Edge and its competitors. According to the industry distribution chart, Pacific Edge ranks #178 out of 204 companies in the Medical Diagnostics & Research industry, placing it in the top 87.3%.
Is Pacific Edge's Operating Margin % too high?
Pacific Edge's current Operating Margin % is -314.33%. Based on the distribution chart, Pacific Edge ranks #178 out of 204 companies in the Medical Diagnostics & Research industry, which is in the bottom quartile relative to peers. Overall, Pacific Edge has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pacific Edge's Operating Margin % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Pacific Edge ranks #178 out of 204 companies for Operating Margin %. This places Pacific Edge in the lower half of its industry. 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 Medical Diagnostics & Research company?
A good Operating Margin % depends on the Medical Diagnostics & Research industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Pacific Edge and its competitors. Pacific Edge's current Operating Margin % is -314.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pacific Edge stock overvalued right now?
Based on GuruFocus' analysis, Pacific Edge (ASX:PEB) is currently considered Significantly Overvalued. The stock's GF Value™ is A$0.05, compared to a current price of A$0.25 — trading 400% above its estimated fair value. The current Operating Margin % is -314.33%. Pacific Edge's overall GF Score™ is 42/100 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 Pacific Edge (ASX:PEB), the current Operating Margin % is -314.33% as of Mar. 2026. 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 Pacific Edge (ASX:PEB) Overvalued in 2026?
Based on GuruFocus' analysis, Pacific Edge stock appears to be overvalued.
The current stock price of A$0.25 is trading 400% above its estimated GF Value™ of A$0.05.
GuruFocus considers Pacific Edge to be Significantly Overvalued.
Key valuation signals for ASX:PEB:
Operating Margin %: -314.33%
GF Value™: A$0.05 vs. price of A$0.25 (400% above fair value)
No single metric tells the full story. See the ASX:PEB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pacific Edge Ltd is a New Zealand-based company involved in researching, developing, and commercialising new diagnostic and prognostic tools for the early detection and management of cancers. It manages and operates the laboratories used for the detection of bladder cancer. It operates in two segments: Commercial, which includes sales, marketing, laboratory, and support operations to run the commercial businesses internationally; and Research, which is into research and development of diagnostic and prognostic products for human cancer. The commercial segment contributes to the majority of the revenue. Pacific Edge has a product in the marketplace called Cxbladder. Its geographical segments are the United States, which generates maximum revenue, New Zealand, and the Rest of the World.
42GF Score
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