Neptune Insurance HoldingsFRA:SN4 +2.17%17 Operating Margin % is 35.56% as of Mar. 2026, which is 34% below its 10-year median of 53.53. GuruFocus rates FRA:SN4 with a GF Score™ of 17/100. The stock has 3 warning signs investors should review. Among 66 Insurance companies, Neptune Insurance Holdings ranks better than 90.91% on this metric.
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.
Neptune Insurance Holdings Operating Margin % Related Terms
Neptune Insurance Holdings 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.
FRA:SN4 vs CRVL, ARX, BWIN: Operating Margin % Comparison
For the Insurance Brokers subindustry, Neptune Insurance 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.
Neptune Insurance Holdings Operating Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Neptune Insurance Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Neptune Insurance Holdings'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.
Neptune Insurance 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.
Neptune Insurance Holdings (FRA:SN4) has a Operating Margin % of 35.56% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Neptune Insurance Holdings and its competitors. This is 34% below median its historical median of 53.53. Over the past decade, Neptune Insurance Holdings' Operating Margin % has ranged from 44.17 to 57.37. According to the industry distribution chart, Neptune Insurance Holdings ranks #6 out of 66 companies in the Insurance industry, placing it in the top 9.1%.
Is Neptune Insurance Holdings' Operating Margin % too high?
Neptune Insurance Holdings' current Operating Margin % of 35.56% is 34% below median its 10-year median of 53.53. Over the past 10 years, this metric has ranged from a low of 44.17 to a high of 57.37. The Insurance industry median Operating Margin % is 11.62. Neptune Insurance Holdings' value of 35.56% is 206% above this industry median. Based on the distribution chart, Neptune Insurance Holdings ranks #6 out of 66 companies in the Insurance industry, which is in the top quartile — a strong position relative to peers. Overall, Neptune Insurance Holdings has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Neptune Insurance Holdings' Operating Margin % compare to CRVL and ARX?
According to the Insurance industry distribution chart, Neptune Insurance Holdings ranks #6 out of 66 companies for Operating Margin %. This places Neptune Insurance Holdings in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 11.62. Neptune Insurance Holdings' value of 35.56% is 206% above this benchmark. Historically, Neptune Insurance Holdings' own Operating Margin % has ranged from 44.17 to 57.37 over the past decade. While the company's 10-year median is 53.53 vs. the industry median of 11.62, Neptune Insurance Holdings 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 Insurance company?
The median Operating Margin % among Insurance companies is 11.62, based on 66 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. Neptune Insurance Holdings's current Operating Margin % of 35.56% is 206% 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 Neptune Insurance Holdings and its competitors. For the Insurance industry, the median Operating Margin % is 11.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Neptune Insurance Holdings's current Operating Margin % is 35.56%, which is 34% below median its own 10-year median of 53.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Neptune Insurance Holdings stock overvalued right now?
Neptune Insurance Holdings (FRA:SN4) has a current Operating Margin % of 35.56%. The current Operating Margin % is 35.56%, which is 34% below median its 10-year median of 53.53 and 206% above the Insurance industry median of 11.62. Neptune Insurance Holdings' overall GF Score™ is 17/100 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 Neptune Insurance Holdings (FRA:SN4), the current Operating Margin % is 35.56% 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.
Neptune Insurance Holdings Inc is a high-growth, profitable, data-driven MGA that offers residential and commercial insurance products, including primary flood insurance, excess flood insurance and parametric earthquake insurance, distributed through a nationwide network of agencies in the United States. The company underwrites and administers the issuance of insurance policies on behalf of a diverse panel of insurance and reinsurance companies and does not take any balance sheet insurance risk or have claims handling responsibility relating to the policies it sells.
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