Cebu AirCEBUF -76.33%65 Operating Margin % is 9.06% as of Mar. 2026, which is 5% below its 10-year median of 9.49. GuruFocus rates CEBUF with a GF Score™ of 65/100 and a GF Value™ of $2.89 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,007 Transportation companies, Cebu Air ranks better than 60.68% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Cebu Air's Operating Income for the
three
months ended in Mar. 2026 was $49 Mil. Cebu Air's Revenue for the
three
months ended in Mar. 2026 was $545 Mil. Therefore, Cebu Air's Operating Margin % for the quarter that ended in Mar. 2026 was 9.06%.
The historical rank and industry rank for Cebu Air's Operating Margin % or its related term are showing as below:
CEBUF'
s Operating Margin % Range Over the Past 10 Years
Min: -147.12 Med: 9.49 Max: 19.79
Current: 10.23
CEBUF's Operating Margin % is ranked better than 60.68% of 1007
companies
in the Transportation industry
Industry Median: 7.37
vs CEBUF: 10.23
Cebu Air's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Cebu Air's Operating Income for the
three
months ended in Mar. 2026 was $49 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $205 Mil.
Warning Sign:
Cebu Air Inc has recorded a loss in operating income at least once over the past 3 years.
Cebu Air (OTCPK:CEBUF) 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.
Cebu Air Operating Margin % Related Terms
Cebu Air Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cebu Air'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.
CEBUF vs DAL, UAL, LUV: Operating Margin % Comparison
For the Airlines subindustry, Cebu Air'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.
Cebu Air Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Cebu Air's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cebu Air'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.
Cebu Air's Operating Margin % for the fiscal year that ended in Dec. 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.
Cebu Air (CEBUF) has a Operating Margin % of 9.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cebu Air and its competitors. This is near median its historical median of 9.49. According to the industry distribution chart, Cebu Air ranks #396 out of 1007 companies in the Transportation industry, placing it in the top 39.3%.
Is Cebu Air's Operating Margin % too high?
Cebu Air's current Operating Margin % of 9.06% is near median its 10-year median of 9.49. The Transportation industry median Operating Margin % is 7.37. Cebu Air's value of 9.06% is 22.9% above this industry median. Based on the distribution chart, Cebu Air ranks #396 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, Cebu Air has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Cebu Air's Operating Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Cebu Air ranks #396 out of 1007 companies for Operating Margin %. This puts Cebu Air in the upper half of its industry. The industry median Operating Margin % is 7.37. Cebu Air's value of 9.06% is 22.9% above this benchmark. While the company's 10-year median is 9.49 vs. the industry median of 7.37, Cebu Air 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.37, based on 1,007 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. Cebu Air's current Operating Margin % of 9.06% is 22.9% 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 Cebu Air and its competitors. For the Transportation industry, the median Operating Margin % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cebu Air's current Operating Margin % is 9.06%, which is near median its own 10-year median of 9.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cebu Air stock overvalued right now?
Based on GuruFocus' analysis, Cebu Air (CEBUF) is currently considered Possible Value Trap. The stock's GF Value™ is $2.89, compared to a current price of $0.40 — trading 86.2% below its estimated fair value. The current Operating Margin % is 9.06%, which is near median its 10-year median of 9.49 and 22.9% above the Transportation industry median of 7.37. Cebu Air's overall GF Score™ is 65/100 with 7 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 Cebu Air (CEBUF), the current Operating Margin % is 9.06% 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 Cebu Air (CEBUF) Overvalued in 2026?
Based on GuruFocus' analysis, Cebu Air stock appears to be undervalued.
The current stock price of $0.40 is trading 86.2% below its estimated GF Value™ of $2.89.
GuruFocus considers Cebu Air to be Possible Value Trap.
Key valuation signals for CEBUF:
Operating Margin %: 9.06% (near median its 10-year median of 9.49)
GF Value™: $2.89 vs. price of $0.40 (86.2% below fair value)
Industry Position: 22.9% above the Transportation median (#396 of 1007)
No single metric tells the full story. See the CEBUF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cebu Air Inc is a carrier in the Philippine air transportation industry. It has two reportable operating segments, has three reportable operating segments, which is the airline business (Parent Company, CEBGO and AirSWIFT), line, light and base maintenance business (A-Plus) and ground handling business (1Aviation). The revenue of the company was mainly derived from rendering transportation services, line, light and base maintenance services and ground handling services.
65GF Score
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