US Global Investors (NAS:GROW) 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.
US Global Investors Operating Margin % Related Terms
US Global Investors Operating Margin % Historical Data
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The historical data trend for US Global Investors'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.
GROW vs CXH, RAND, SDEV: Operating Margin % Comparison
For the Asset Management subindustry, US Global Investors'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.
US Global Investors Operating Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, US Global Investors's Operating Margin % distribution charts can be found below:
* The bar in red indicates where US Global Investors's Operating Margin % falls into.
US Global Investors 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.
US Global Investors's Operating Margin % for the fiscal year that ended in Jun. 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.
US Global Investors (GROW) has a Operating Margin % of 3.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on US Global Investors and its competitors. According to the industry distribution chart, US Global Investors ranks #488 out of 657 companies in the Asset Management industry, placing it in the top 74.3%.
Is US Global Investors' Operating Margin % too high?
US Global Investors' current Operating Margin % is 3.26%. The Asset Management industry median Operating Margin % is 16.85. US Global Investors' value of 3.26% is 80.7% below this industry median. Based on the distribution chart, US Global Investors ranks #488 out of 657 companies in the Asset Management industry, which is below the industry midpoint. Overall, US Global Investors has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does US Global Investors' Operating Margin % compare to CXH and RAND?
According to the Asset Management industry distribution chart, US Global Investors ranks #488 out of 657 companies for Operating Margin %. This places US Global Investors in the lower half of its industry. The industry median Operating Margin % is 16.85. US Global Investors' value of 3.26% is 80.7% below this benchmark. 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 Asset Management company?
The median Operating Margin % among Asset Management companies is 16.85, based on 657 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. US Global Investors's current Operating Margin % of 3.26% is 80.7% 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 US Global Investors and its competitors. For the Asset Management industry, the median Operating Margin % is 16.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. US Global Investors's current Operating Margin % is 3.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is US Global Investors stock overvalued right now?
Based on GuruFocus' analysis, US Global Investors (GROW) is currently considered Significantly Overvalued. The stock's GF Value™ is $2.31, compared to a current price of $3.15 — trading 36.4% above its estimated fair value. The current Operating Margin % is 3.26% and 80.7% below the Asset Management industry median of 16.85. US Global Investors' overall GF Score™ is 63/100 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 US Global Investors (GROW), the current Operating Margin % is 3.26% 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.
Is US Global Investors (GROW) Overvalued in 2026?
Based on GuruFocus' analysis, US Global Investors stock appears to be overvalued.
The current stock price of $3.15 is trading 36.4% above its estimated GF Value™ of $2.31.
GuruFocus considers US Global Investors to be Significantly Overvalued.
Key valuation signals for GROW:
Operating Margin %: 3.26%
GF Value™: $2.31 vs. price of $3.15 (36.4% above fair value)
Industry Position: 80.7% below the Asset Management median (#488 of 657)
No single metric tells the full story. See the GROW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
US Global Investors Inc is a registered investment advisory firm. The company manages the following business segments: Investment management services; through which the company offers, to U.S. Global Investors Funds (USGIF or the Funds) and exchange-traded fund (ETF) clients, a range of investment management products and services to meet the needs of individual and institutional investors; and Corporate Investments, through which the company invests for its own account in an effort to add growth and value to its cash position. It derives all its revenue from Investment management services.
63GF Score
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