Muthoot MicrofinBOM:544055 -0.95%40 Operating Margin % is 26.18% as of Mar. 2026, which is 22% above its 10-year median of 21.45. GuruFocus rates BOM:544055 with a GF Score™ of 40/100. The stock has 9 warning signs investors should review. Among 411 Credit Services companies, Muthoot Microfin ranks better than 56.2% on this metric.
Muthoot Microfin Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Muthoot Microfin's Operating Margin % or its related term are showing as below:
BOM:544055'
s Operating Margin % Range Over the Past 10 Years
Min: 9.08 Med: 21.45 Max: 31.26
Current: 22.88
BOM:544055's Operating Margin % is ranked better than 56.2% of 411
companies
in the Credit Services industry
Industry Median: 17.36
vs BOM:544055: 22.88
Muthoot Microfin's 5-Year Average Operating Margin % Growth Rate was 25.00% per year.
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.
Muthoot Microfin Operating Margin % Related Terms
Muthoot Microfin Operating Margin % Historical Data
* Premium members only.
The historical data trend for Muthoot Microfin'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.
BOM:544055 vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Muthoot Microfin'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.
Muthoot Microfin Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Muthoot Microfin's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Muthoot Microfin'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.
Muthoot Microfin'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.
Muthoot Microfin (BOM:544055) has a Operating Margin % of 26.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Muthoot Microfin and its competitors. This is 22% above median its historical median of 21.45. Over the past decade, Muthoot Microfin's Operating Margin % has ranged from 9.08 to 31.26. According to the industry distribution chart, Muthoot Microfin ranks #180 out of 411 companies in the Credit Services industry, placing it in the top 43.8%.
Is Muthoot Microfin's Operating Margin % too high?
Muthoot Microfin's current Operating Margin % of 26.18% is 22% above median its 10-year median of 21.45. Over the past 10 years, this metric has ranged from a low of 9.08 to a high of 31.26. The Credit Services industry median Operating Margin % is 17.36. Muthoot Microfin's value of 26.18% is 50.8% above this industry median. Based on the distribution chart, Muthoot Microfin ranks #180 out of 411 companies in the Credit Services industry, which is above the industry midpoint. Overall, Muthoot Microfin has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does Muthoot Microfin's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Muthoot Microfin ranks #180 out of 411 companies for Operating Margin %. This puts Muthoot Microfin in the upper half of its industry. The industry median Operating Margin % is 17.36. Muthoot Microfin's value of 26.18% is 50.8% above this benchmark. Historically, Muthoot Microfin's own Operating Margin % has ranged from 9.08 to 31.26 over the past decade. While the company's 10-year median is 21.45 vs. the industry median of 17.36, Muthoot Microfin 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.36, based on 411 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. Muthoot Microfin's current Operating Margin % of 26.18% is 50.8% 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 Muthoot Microfin and its competitors. For the Credit Services industry, the median Operating Margin % is 17.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Muthoot Microfin's current Operating Margin % is 26.18%, which is 22% above median its own 10-year median of 21.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Muthoot Microfin stock overvalued right now?
Muthoot Microfin (BOM:544055) has a current Operating Margin % of 26.18%. The current Operating Margin % is 26.18%, which is 22% above median its 10-year median of 21.45 and 50.8% above the Credit Services industry median of 17.36. Muthoot Microfin's overall GF Score™ is 40/100 with 9 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 Muthoot Microfin (BOM:544055), the current Operating Margin % is 26.18% 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.
Muthoot Microfin Ltd is a microfinance institution providing micro-loans to women customers with a focus on rural regions of India. The company offers loan products such as group loans for livelihood solutions such as income generating loans, Pragathi loans, and individual loans; life betterment solutions including mobile phones loans, solar lighting product loans, and household appliances product loans; health and hygiene loans such as sanitation improvement loans; and secured loans in the form of gold loans and Muthoot Small & Growing Business loans.
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