Funding Circle Holdings PLC has recorded a loss in operating income at least once over the past 3 years.
Funding Circle Holdings (CHIX:FCHl) 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.
Funding Circle Holdings Operating Margin % Related Terms
Funding Circle Holdings Operating Margin % Historical Data
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The historical data trend for Funding Circle Holdings'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.
CHIX:FCHL vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Funding Circle Holdings'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.
Funding Circle Holdings Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Funding Circle Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Funding Circle Holdings's Operating Margin % falls into.
Funding Circle Holdings Operating Margin % Calculation
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.
Funding Circle Holdings'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.
Funding Circle Holdings (CHIX:FCHL) has a Operating Margin % of 11.27% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Funding Circle Holdings and its competitors. According to the industry distribution chart, Funding Circle Holdings ranks #255 out of 412 companies in the Credit Services industry, placing it in the top 61.9%.
Is Funding Circle Holdings' Operating Margin % too high?
Funding Circle Holdings' current Operating Margin % is 11.27%. The Credit Services industry median Operating Margin % is 17.33. Funding Circle Holdings' value of 11.27% is 34.9% below this industry median. Based on the distribution chart, Funding Circle Holdings ranks #255 out of 412 companies in the Credit Services industry, which is below the industry midpoint. Overall, Funding Circle Holdings has a GF Score™ of 72/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Funding Circle Holdings' Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Funding Circle Holdings ranks #255 out of 412 companies for Operating Margin %. This places Funding Circle Holdings in the lower half of its industry. The industry median Operating Margin % is 17.33. Funding Circle Holdings' value of 11.27% is 34.9% 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 a Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 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. Funding Circle Holdings's current Operating Margin % of 11.27% is 34.9% 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 Funding Circle Holdings and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Funding Circle Holdings's current Operating Margin % is 11.27%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Funding Circle Holdings stock overvalued right now?
Based on GuruFocus' analysis, Funding Circle Holdings (CHIX:FCHL) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.72, compared to a current price of £1.43 — trading 16.9% below its estimated fair value. The current Operating Margin % is 11.27% and 34.9% below the Credit Services industry median of 17.33. Funding Circle Holdings' overall GF Score™ is 72/100 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 Funding Circle Holdings (CHIX:FCHL), the current Operating Margin % is 11.27% 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 Funding Circle Holdings (CHIX:FCHL) Overvalued in 2026?
Based on GuruFocus' analysis, Funding Circle Holdings stock appears to be undervalued.
The current stock price of £1.43 is trading 16.9% below its estimated GF Value™ of £1.72.
GuruFocus considers Funding Circle Holdings to be Modestly Undervalued.
Key valuation signals for CHIX:FCHL:
Operating Margin %: 11.27%
GF Value™: £1.72 vs. price of £1.43 (16.9% below fair value)
Industry Position: 34.9% below the Credit Services median (#255 of 412)
No single metric tells the full story. See the CHIX:FCHL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Funding Circle Holdings PLC provides an online lending platform through which borrower loans are originated and allocated to investors and comprising the different online lending platforms across the company's geographies. Company's segment includes: Term Loans and FlexiPay. The sectors includes: Wholesale & retail, Real Estate, Health & other service activities, Other manufacturing, IT & telecommunication The company's geographical segment include the United Kingdom and developing markets. It derives the majority of its revenue from the United Kingdom region.
72GF Score
Get the complete analysis for CHIX:FCHL
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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