Frontier DevelopmentsCHIX:FDEVL -0.68%49 Operating Margin % is 13.11% as of Nov. 2025, which is 47% above its 10-year median of 8.92. GuruFocus rates CHIX:FDEVL with a GF Score™ of 49/100 and a GF Value™ of £2.80 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 553 Interactive Media companies, Frontier Developments ranks better than 67.81% on this metric.
The historical rank and industry rank for Frontier Developments's Operating Margin % or its related term are showing as below:
CHIX:FDEVl'
s Operating Margin % Range Over the Past 10 Years
Min: -30.25 Med: 8.92 Max: 21.96
Current: 11.67
CHIX:FDEVl's Operating Margin % is ranked better than 67.81% of 553
companies
in the Interactive Media industry
Industry Median: 2.99
vs CHIX:FDEVl: 11.67
Frontier Developments's 5-Year Average Operating Margin % Growth Rate was 0.00% 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.
Frontier Developments Operating Margin % Related Terms
Frontier Developments Operating Margin % Historical Data
* Premium members only.
The historical data trend for Frontier Developments'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:FDEVL vs NTES, EA, TTWO: Operating Margin % Comparison
For the Electronic Gaming & Multimedia subindustry, Frontier Developments'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.
Frontier Developments Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Frontier Developments's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Frontier Developments'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.
Frontier Developments's Operating Margin % for the fiscal year that ended in May. 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.
Frontier Developments (CHIX:FDEVL) has a Operating Margin % of 13.11% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Frontier Developments and its competitors. This is 47% above median its historical median of 8.92. According to the industry distribution chart, Frontier Developments ranks #178 out of 553 companies in the Interactive Media industry, placing it in the top 32.2%.
Is Frontier Developments' Operating Margin % too high?
Frontier Developments' current Operating Margin % of 13.11% is 47% above median its 10-year median of 8.92. The Interactive Media industry median Operating Margin % is 2.99. Frontier Developments' value of 13.11% is 338.5% above this industry median. Based on the distribution chart, Frontier Developments ranks #178 out of 553 companies in the Interactive Media industry, which is above the industry midpoint. Overall, Frontier Developments has a GF Score™ of 49/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Frontier Developments' Operating Margin % compare to NTES and EA?
According to the Interactive Media industry distribution chart, Frontier Developments ranks #178 out of 553 companies for Operating Margin %. This puts Frontier Developments in the upper half of its industry. The industry median Operating Margin % is 2.99. Frontier Developments' value of 13.11% is 338.5% above this benchmark. While the company's 10-year median is 8.92 vs. the industry median of 2.99, Frontier Developments 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 an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.99, based on 553 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. Frontier Developments's current Operating Margin % of 13.11% is 338.5% 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 Frontier Developments and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Frontier Developments's current Operating Margin % is 13.11%, which is 47% above median its own 10-year median of 8.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontier Developments stock overvalued right now?
Based on GuruFocus' analysis, Frontier Developments (CHIX:FDEVL) is currently considered Significantly Overvalued. The stock's GF Value™ is £2.80, compared to a current price of £4.02 — trading 43.4% above its estimated fair value. The current Operating Margin % is 13.11%, which is 47% above median its 10-year median of 8.92 and 338.5% above the Interactive Media industry median of 2.99. Frontier Developments' overall GF Score™ is 49/100 with 3 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 Frontier Developments (CHIX:FDEVL), the current Operating Margin % is 13.11% as of Nov. 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 Frontier Developments (CHIX:FDEVL) Overvalued in 2026?
Based on GuruFocus' analysis, Frontier Developments stock appears to be overvalued.
The current stock price of £4.02 is trading 43.4% above its estimated GF Value™ of £2.80.
GuruFocus considers Frontier Developments to be Significantly Overvalued.
Key valuation signals for CHIX:FDEVL:
Operating Margin %: 13.11% (47% above median its 10-year median of 8.92)
GF Value™: £2.80 vs. price of £4.02 (43.4% above fair value)
Industry Position: 338.5% above the Interactive Media median (#178 of 553)
No single metric tells the full story. See the CHIX:FDEVL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontier Developments PLC is a United Kingdom-based company that develops and publishes video games for personal computers and consoles. The company is known for titles such as the Elite series, Planet Coaster, Planet Zoo, and Jurassic World Evolution. It operates through game development and publishing, using in-house technology to create and distribute interactive entertainment software. Frontier Developments has one operating segment, being revenue from publishing games and revenue from other streams such as royalties and licensing. The majority of revenue is generated from Publishing revenue.
49GF Score
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