McGraw HillFRA:1LI -6.06%31 Operating Margin % is 7.04% as of Mar. 2026, which is 33% below its 10-year median of 10.45. GuruFocus rates FRA:1LI with a GF Score™ of 31/100. The stock has 3 warning signs investors should review. Among 258 Education companies, McGraw Hill ranks better than 61.63% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. McGraw Hill's Operating Income for the
three
months ended in Mar. 2026 was €28 Mil. McGraw Hill's Revenue for the
three
months ended in Mar. 2026 was €401 Mil. Therefore, McGraw Hill's Operating Margin % for the quarter that ended in Mar. 2026 was 7.04%.
Good Sign:
McGraw Hill Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for McGraw Hill's Operating Margin % or its related term are showing as below:
FRA:1LI'
s Operating Margin % Range Over the Past 10 Years
Min: 3.12 Med: 10.45 Max: 16.49
Current: 15.02
FRA:1LI's Operating Margin % is ranked better than 61.63% of 258
companies
in the Education industry
Industry Median: 9.46
vs FRA:1LI: 15.02
McGraw Hill's 5-Year Average Operating Margin % Growth Rate was 14.20% per year.
McGraw Hill's Operating Income for the
three
months ended in Mar. 2026 was €28 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €271 Mil.
McGraw Hill (FRA:1LI) 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.
McGraw Hill Operating Margin % Related Terms
McGraw Hill Operating Margin % Historical Data
* Premium members only.
The historical data trend for McGraw Hill'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.
FRA:1LI vs UTI, PRDO, STRA: Operating Margin % Comparison
For the Education & Training Services subindustry, McGraw Hill'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.
McGraw Hill Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, McGraw Hill's Operating Margin % distribution charts can be found below:
* The bar in red indicates where McGraw Hill'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.
McGraw Hill'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.
McGraw Hill (FRA:1LI) has a Operating Margin % of 7.04% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on McGraw Hill and its competitors. This is 33% below median its historical median of 10.45. Over the past decade, McGraw Hill's Operating Margin % has ranged from 3.12 to 16.49. According to the industry distribution chart, McGraw Hill ranks #99 out of 258 companies in the Education industry, placing it in the top 38.4%.
Is McGraw Hill's Operating Margin % too high?
McGraw Hill's current Operating Margin % of 7.04% is 33% below median its 10-year median of 10.45. Over the past 10 years, this metric has ranged from a low of 3.12 to a high of 16.49. The Education industry median Operating Margin % is 9.46. McGraw Hill's value of 7.04% is 25.6% below this industry median. Based on the distribution chart, McGraw Hill ranks #99 out of 258 companies in the Education industry, which is above the industry midpoint. Overall, McGraw Hill has a GF Score™ of 31/100, reflecting its overall financial health beyond just this single metric.
How does McGraw Hill's Operating Margin % compare to UTI and PRDO?
According to the Education industry distribution chart, McGraw Hill ranks #99 out of 258 companies for Operating Margin %. This puts McGraw Hill in the upper half of its industry. The industry median Operating Margin % is 9.46. McGraw Hill's value of 7.04% is 25.6% below this benchmark. Historically, McGraw Hill's own Operating Margin % has ranged from 3.12 to 16.49 over the past decade. While the company's 10-year median is 10.45 vs. the industry median of 9.46, McGraw Hill has consistently been below 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 Education company?
The median Operating Margin % among Education companies is 9.46, based on 258 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. McGraw Hill's current Operating Margin % of 7.04% is 25.6% 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 McGraw Hill and its competitors. For the Education industry, the median Operating Margin % is 9.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. McGraw Hill's current Operating Margin % is 7.04%, which is 33% below median its own 10-year median of 10.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is McGraw Hill stock overvalued right now?
McGraw Hill (FRA:1LI) has a current Operating Margin % of 7.04%. The current Operating Margin % is 7.04%, which is 33% below median its 10-year median of 10.45 and 25.6% below the Education industry median of 9.46. McGraw Hill's overall GF Score™ is 31/100 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 McGraw Hill (FRA:1LI), the current Operating Margin % is 7.04% 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.
McGraw Hill Inc is a provider of education solutions for K-12, higher education and professional learning markets. It is helping shape the education industry by providing access to effective learning experiences that improve outcomes and opportunities for all. It operates at the intersection of proprietary content, software and data, using artificial intelligence to deliver personalized learning experiences, driving positive outcomes throughout the entire learning lifecycle. The company has four reportable segments K-12, Higher Education, Global Professional, International. It generates majority of revenue from K-12 which provides end-to-end core, supplemental and intervention curricula to support the needs of U.S. K-12 schools. It generates majority of revenue from United States.
31GF Score
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