Morgan Advanced MaterialsCHIX:MGAML -0.23%74 Operating Margin % is 7.57% as of Dec. 2025, which is 33% below its 10-year median of 11.23. GuruFocus rates CHIX:MGAML with a GF Score™ of 74/100 and a GF Value™ of £2.41 (Fairly Valued). The stock has 9 warning signs investors should review. Among 3,038 Industrial Products companies, Morgan Advanced Materials ranks better than 63.46% on this metric.
Morgan Advanced Materials PLC operating margin has been in a 5-year decline. The average rate of decline per year is -1.5%.
The historical rank and industry rank for Morgan Advanced Materials's Operating Margin % or its related term are showing as below:
CHIX:MGAMl'
s Operating Margin % Range Over the Past 10 Years
Min: 9.37 Med: 11.23 Max: 12.98
Current: 9.37
CHIX:MGAMl's Operating Margin % is ranked better than 63.46% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs CHIX:MGAMl: 9.37
Morgan Advanced Materials (CHIX:MGAMl) 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.
Morgan Advanced Materials Operating Margin % Related Terms
Morgan Advanced Materials Operating Margin % Historical Data
* 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.
Morgan Advanced Materials Operating Margin % Chart
CHIX:MGAML vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Morgan Advanced Materials'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.
Morgan Advanced Materials Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Morgan Advanced Materials's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Morgan Advanced Materials's Operating Margin % falls into.
Morgan Advanced Materials 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.
Morgan Advanced Materials'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.
Morgan Advanced Materials (CHIX:MGAML) has a Operating Margin % of 7.57% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Morgan Advanced Materials and its competitors. This is 33% below median its historical median of 11.23. Over the past decade, Morgan Advanced Materials' Operating Margin % has ranged from 9.37 to 12.98. According to the industry distribution chart, Morgan Advanced Materials ranks #1110 out of 3038 companies in the Industrial Products industry, placing it in the top 36.5%.
Is Morgan Advanced Materials' Operating Margin % too high?
Morgan Advanced Materials' current Operating Margin % of 7.57% is 33% below median its 10-year median of 11.23. Over the past 10 years, this metric has ranged from a low of 9.37 to a high of 12.98. The Industrial Products industry median Operating Margin % is 6.53. Morgan Advanced Materials' value of 7.57% is 15.9% above this industry median. Based on the distribution chart, Morgan Advanced Materials ranks #1110 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Morgan Advanced Materials has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Morgan Advanced Materials' Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Morgan Advanced Materials ranks #1110 out of 3038 companies for Operating Margin %. This puts Morgan Advanced Materials in the upper half of its industry. The industry median Operating Margin % is 6.53. Morgan Advanced Materials' value of 7.57% is 15.9% above this benchmark. Historically, Morgan Advanced Materials' own Operating Margin % has ranged from 9.37 to 12.98 over the past decade. While the company's 10-year median is 11.23 vs. the industry median of 6.53, Morgan Advanced Materials 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Morgan Advanced Materials's current Operating Margin % of 7.57% is 15.9% 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 Morgan Advanced Materials and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Morgan Advanced Materials's current Operating Margin % is 7.57%, which is 33% below median its own 10-year median of 11.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Morgan Advanced Materials stock overvalued right now?
Based on GuruFocus' analysis, Morgan Advanced Materials (CHIX:MGAML) is currently considered Fairly Valued. The stock's GF Value™ is £2.41, compared to a current price of £2.21 — trading 8.3% below its estimated fair value. The current Operating Margin % is 7.57%, which is 33% below median its 10-year median of 11.23 and 15.9% above the Industrial Products industry median of 6.53. Morgan Advanced Materials' overall GF Score™ is 74/100 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 Morgan Advanced Materials (CHIX:MGAML), the current Operating Margin % is 7.57% 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 Morgan Advanced Materials (CHIX:MGAML) Overvalued in 2026?
Based on GuruFocus' analysis, Morgan Advanced Materials stock appears to be undervalued.
The current stock price of £2.21 is trading 8.3% below its estimated GF Value™ of £2.41.
GuruFocus considers Morgan Advanced Materials to be Fairly Valued.
Key valuation signals for CHIX:MGAML:
Operating Margin %: 7.57% (33% below median its 10-year median of 11.23)
GF Value™: £2.41 vs. price of £2.21 (8.3% below fair value)
Industry Position: 15.9% above the Industrial Products median (#1110 of 3038)
No single metric tells the full story. See the CHIX:MGAML stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Morgan Advanced Materials PLC is an advanced materials company that co-designs and manufactures mission-critical solutions using material science and application expertise. The Company's products and solutions include semiconductor consumables, collector strips and carbon brushes, graphite powders, face seals, sliding bearings, rotary seals, rotary vane pump components, structural ceramic components, engineered coatings, ceramic cores, ceramic-to-metal assemblies, braze alloys, ceramic tubes and rollers, extruded products, laser products, and MACOR machinable glass ceramic. The Group operates through three segments: Thermal Products generates maximum revenue, Performance Carbon, and Technical Ceramics. Geographically, it generates the majority of its revenue from the USA.
74GF Score
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