Sonic HealthcareASX:SHL +0.15%82 Operating Margin % is 8.83% as of Dec. 2025, which is 23% below its 10-year median of 11.45. GuruFocus rates ASX:SHL with a GF Score™ of 82/100 and a GF Value™ of A$32.93 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 204 Medical Diagnostics & Research companies, Sonic Healthcare ranks better than 66.67% on this metric.
Sonic Healthcare Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -11.2%.
The historical rank and industry rank for Sonic Healthcare's Operating Margin % or its related term are showing as below:
ASX:SHL'
s Operating Margin % Range Over the Past 10 Years
Min: 9.14 Med: 11.45 Max: 22.93
Current: 9.14
ASX:SHL's Operating Margin % is ranked better than 66.67% of 204
companies
in the Medical Diagnostics & Research industry
Industry Median: -3.195
vs ASX:SHL: 9.14
Sonic Healthcare's 5-Year Average Operating Margin % Growth Rate was -11.20% per year.
Sonic Healthcare (ASX:SHL) 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.
Sonic Healthcare Operating Margin % Related Terms
Sonic Healthcare Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sonic Healthcare'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:SHL vs TMO, DHR, IDXX: Operating Margin % Comparison
For the Diagnostics & Research subindustry, Sonic Healthcare'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.
Sonic Healthcare Operating Margin % vs Medical Diagnostics & Research Industry
For the Medical Diagnostics & Research industry and Healthcare sector, Sonic Healthcare's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sonic Healthcare'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.
Sonic Healthcare'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.
Sonic Healthcare (ASX:SHL) has a Operating Margin % of 8.83% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sonic Healthcare and its competitors. This is 23% below median its historical median of 11.45. Over the past decade, Sonic Healthcare's Operating Margin % has ranged from 9.14 to 22.93. According to the industry distribution chart, Sonic Healthcare ranks #68 out of 204 companies in the Medical Diagnostics & Research industry, placing it in the top 33.3%.
Is Sonic Healthcare's Operating Margin % too high?
Sonic Healthcare's current Operating Margin % of 8.83% is 23% below median its 10-year median of 11.45. Over the past 10 years, this metric has ranged from a low of 9.14 to a high of 22.93. Based on the distribution chart, Sonic Healthcare ranks #68 out of 204 companies in the Medical Diagnostics & Research industry, which is above the industry midpoint. Overall, Sonic Healthcare has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sonic Healthcare's Operating Margin % compare to TMO and DHR?
According to the Medical Diagnostics & Research industry distribution chart, Sonic Healthcare ranks #68 out of 204 companies for Operating Margin %. This puts Sonic Healthcare in the upper half of its industry. Historically, Sonic Healthcare's own Operating Margin % has ranged from 9.14 to 22.93 over the past decade. 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 Sonic Healthcare and its competitors. Sonic Healthcare's current Operating Margin % is 8.83%, which is 23% below median its own 10-year median of 11.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sonic Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Sonic Healthcare (ASX:SHL) is currently considered Significantly Undervalued. The stock's GF Value™ is A$32.93, compared to a current price of A$19.86 — trading 39.7% below its estimated fair value. The current Operating Margin % is 8.83%, which is 23% below median its 10-year median of 11.45. Sonic Healthcare's overall GF Score™ is 82/100 with 5 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 Sonic Healthcare (ASX:SHL), the current Operating Margin % is 8.83% 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 Sonic Healthcare (ASX:SHL) Overvalued in 2026?
Based on GuruFocus' analysis, Sonic Healthcare stock appears to be undervalued.
The current stock price of A$19.86 is trading 39.7% below its estimated GF Value™ of A$32.93.
GuruFocus considers Sonic Healthcare to be Significantly Undervalued.
Key valuation signals for ASX:SHL:
Operating Margin %: 8.83% (23% below median its 10-year median of 11.45)
GF Value™: A$32.93 vs. price of A$19.86 (39.7% below fair value)
No single metric tells the full story. See the ASX:SHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sonic Healthcare is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland and the UK, the second-largest in Belgium and New Zealand, and the third largest in the US. In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second-largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia. The company typically earns about 35% of group revenue in Australia and New Zealand, 25% in the US, and 40% in Europe.
82GF Score
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