Allegro Culture Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Allegro Culture's Operating Margin % or its related term are showing as below:
HKSE:00550'
s Operating Margin % Range Over the Past 10 Years
Min: -135.66 Med: -44.25 Max: -1.97
Current: -1.97
HKSE:00550's Operating Margin % is ranked worse than 63.4% of 1011
companies
in the Media - Diversified industry
Industry Median: 2.42
vs HKSE:00550: -1.97
Allegro Culture's 5-Year Average Operating Margin % Growth Rate was 41.90% per year.
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.
Allegro Culture Operating Margin % Related Terms
Allegro Culture Operating Margin % Historical Data
* Premium members only.
The historical data trend for Allegro Culture'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.
HKSE:00550 vs APP, OMC, TTD: Operating Margin % Comparison
For the Advertising Agencies subindustry, Allegro Culture'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.
Allegro Culture Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Allegro Culture's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Allegro Culture'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.
Allegro Culture'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.
Allegro Culture (HKSE:00550) has a Operating Margin % of 10.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Allegro Culture and its competitors. According to the industry distribution chart, Allegro Culture ranks #641 out of 1011 companies in the Media - Diversified industry, placing it in the top 63.4%.
Is Allegro Culture's Operating Margin % too high?
Allegro Culture's current Operating Margin % is 10.31%. The Media - Diversified industry median Operating Margin % is 2.42. Allegro Culture's value of 10.31% is 326% above this industry median. Based on the distribution chart, Allegro Culture ranks #641 out of 1011 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Allegro Culture has a GF Score™ of 37/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Allegro Culture's Operating Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, Allegro Culture ranks #641 out of 1011 companies for Operating Margin %. This places Allegro Culture in the lower half of its industry. The industry median Operating Margin % is 2.42. Allegro Culture's value of 10.31% is 326% above 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 a Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.42, based on 1,011 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. Allegro Culture's current Operating Margin % of 10.31% is 326% 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 Allegro Culture and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allegro Culture's current Operating Margin % is 10.31%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allegro Culture stock overvalued right now?
Based on GuruFocus' analysis, Allegro Culture (HKSE:00550) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.39, compared to a current price of HK$1.02 — trading 161.5% above its estimated fair value. The current Operating Margin % is 10.31% and 326% above the Media - Diversified industry median of 2.42. Allegro Culture's overall GF Score™ is 37/100 with 2 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 Allegro Culture (HKSE:00550), the current Operating Margin % is 10.31% 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 Allegro Culture (HKSE:00550) Overvalued in 2026?
Based on GuruFocus' analysis, Allegro Culture stock appears to be overvalued.
The current stock price of HK$1.02 is trading 161.5% above its estimated GF Value™ of HK$0.39.
GuruFocus considers Allegro Culture to be Significantly Overvalued.
Key valuation signals for HKSE:00550:
Operating Margin %: 10.31%
GF Value™: HK$0.39 vs. price of HK$1.02 (161.5% above fair value)
Industry Position: 326% above the Media - Diversified median (#641 of 1011)
No single metric tells the full story. See the HKSE:00550 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Allegro Culture Ltd is an investment holding company engaged in advertising and media services in Hong Kong. The company operates through three main segments: Advertising, which provides recruitment and other advertisement services across various publications and media; Provision of IP development design service - providing IP coding optimisation and refinement services according to individual project requirement; and E-Commerce, focusing on imported household and personal care products distributed through e-commerce platforms. The prominent revenue driver for the company is it's advertising segment.
37GF Score
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