London Stock Exchange GroupFRA:LS4C +1.13%88 Operating Margin % is 23.45% as of Dec. 2025, which is 14% below its 10-year median of 27.37. GuruFocus rates FRA:LS4C with a GF Score™ of 88/100 and a GF Value™ of €128.07 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 664 Capital Markets companies, London Stock Exchange Group ranks better than 62.95% on this metric.
London Stock Exchange Group (FRA:LS4C) 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.
London Stock Exchange Group Operating Margin % Related Terms
London Stock Exchange Group 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.
London Stock Exchange Group Operating Margin % Chart
FRA:LS4C vs SPGI, CME, ICE: Operating Margin % Comparison
For the Financial Data & Stock Exchanges subindustry, London Stock Exchange Group'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.
London Stock Exchange Group Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, London Stock Exchange Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where London Stock Exchange Group's Operating Margin % falls into.
London Stock Exchange Group 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.
London Stock Exchange Group'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.
London Stock Exchange Group (FRA:LS4C) has a Operating Margin % of 23.45% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on London Stock Exchange Group and its competitors. This is 14% below median its historical median of 27.37. Over the past decade, London Stock Exchange Group's Operating Margin % has ranged from 15.47 to 38.51. According to the industry distribution chart, London Stock Exchange Group ranks #246 out of 664 companies in the Capital Markets industry, placing it in the top 37%.
Is London Stock Exchange Group's Operating Margin % too high?
London Stock Exchange Group's current Operating Margin % of 23.45% is 14% below median its 10-year median of 27.37. Over the past 10 years, this metric has ranged from a low of 15.47 to a high of 38.51. The Capital Markets industry median Operating Margin % is 6.96. London Stock Exchange Group's value of 23.45% is 237.2% above this industry median. Based on the distribution chart, London Stock Exchange Group ranks #246 out of 664 companies in the Capital Markets industry, which is above the industry midpoint. Overall, London Stock Exchange Group has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does London Stock Exchange Group's Operating Margin % compare to SPGI and CME?
According to the Capital Markets industry distribution chart, London Stock Exchange Group ranks #246 out of 664 companies for Operating Margin %. This puts London Stock Exchange Group in the upper half of its industry. The industry median Operating Margin % is 6.96. London Stock Exchange Group's value of 23.45% is 237.2% above this benchmark. Historically, London Stock Exchange Group's own Operating Margin % has ranged from 15.47 to 38.51 over the past decade. While the company's 10-year median is 27.37 vs. the industry median of 6.96, London Stock Exchange Group 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 Capital Markets company?
The median Operating Margin % among Capital Markets companies is 6.96, based on 664 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. London Stock Exchange Group's current Operating Margin % of 23.45% is 237.2% 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 London Stock Exchange Group and its competitors. For the Capital Markets industry, the median Operating Margin % is 6.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. London Stock Exchange Group's current Operating Margin % is 23.45%, which is 14% below median its own 10-year median of 27.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is London Stock Exchange Group stock overvalued right now?
Based on GuruFocus' analysis, London Stock Exchange Group (FRA:LS4C) is currently considered Modestly Undervalued. The stock's GF Value™ is €128.07, compared to a current price of €98.78 — trading 22.9% below its estimated fair value. The current Operating Margin % is 23.45%, which is 14% below median its 10-year median of 27.37 and 237.2% above the Capital Markets industry median of 6.96. London Stock Exchange Group's overall GF Score™ is 88/100 with 5 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 London Stock Exchange Group (FRA:LS4C), the current Operating Margin % is 23.45% 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 London Stock Exchange Group (FRA:LS4C) Overvalued in 2026?
Based on GuruFocus' analysis, London Stock Exchange Group stock appears to be undervalued.
The current stock price of €98.78 is trading 22.9% below its estimated GF Value™ of €128.07.
GuruFocus considers London Stock Exchange Group to be Modestly Undervalued.
Key valuation signals for FRA:LS4C:
Operating Margin %: 23.45% (14% below median its 10-year median of 27.37)
GF Value™: €128.07 vs. price of €98.78 (22.9% below fair value)
Industry Position: 237.2% above the Capital Markets median (#246 of 664)
No single metric tells the full story. See the FRA:LS4C stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
London Stock Exchange Group is a fully integrated financial exchange company covering the financial market value chain from primary and secondary markets across multiple asset classes over data, index, and analytics down to clearing and post-trading reporting. With the acquisition of Refinitiv, LSEG generates about two-thirds of its revenue from data and analytics including its FTSE Russell and WM/Refinitiv benchmarks as well as data feeds and terminals. The group is also a majority shareholder in Tradeweb, one of the dominant global fixed-income trading venues, as well as LCH, the largest clearinghouse for over-the-counter swaps globally.
88GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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