IDP EducationIDPUF 60 Operating Margin % is 10.97% as of Dec. 2025, which is 32% below its 10-year median of 16.15. GuruFocus rates IDPUF with a GF Score™ of 60/100 and a GF Value™ of $5.67 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 258 Education companies, IDP Education ranks worse than 58.14% 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.
IDP Education Operating Margin % Related Terms
IDP Education Operating Margin % Historical Data
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The historical data trend for IDP Education'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.
IDPUF vs EDU, TAL, GHC: Operating Margin % Comparison
For the Education & Training Services subindustry, IDP Education'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.
IDP Education Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, IDP Education's Operating Margin % distribution charts can be found below:
* The bar in red indicates where IDP Education'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.
IDP Education'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.
IDP Education (IDPUF) has a Operating Margin % of 10.97% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on IDP Education and its competitors. This is 32% below median its historical median of 16.15. Over the past decade, IDP Education's Operating Margin % has ranged from 6.38 to 23.45. According to the industry distribution chart, IDP Education ranks #150 out of 258 companies in the Education industry, placing it in the top 58.1%.
Is IDP Education's Operating Margin % too high?
IDP Education's current Operating Margin % of 10.97% is 32% below median its 10-year median of 16.15. Over the past 10 years, this metric has ranged from a low of 6.38 to a high of 23.45. The Education industry median Operating Margin % is 9.35. IDP Education's value of 10.97% is 17.4% above this industry median. Based on the distribution chart, IDP Education ranks #150 out of 258 companies in the Education industry, which is below the industry midpoint. Overall, IDP Education has a GF Score™ of 60/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does IDP Education's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, IDP Education ranks #150 out of 258 companies for Operating Margin %. This places IDP Education in the lower half of its industry. The industry median Operating Margin % is 9.35. IDP Education's value of 10.97% is 17.4% above this benchmark. Historically, IDP Education's own Operating Margin % has ranged from 6.38 to 23.45 over the past decade. While the company's 10-year median is 16.15 vs. the industry median of 9.35, IDP Education 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 Education company?
The median Operating Margin % among Education companies is 9.35, 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. IDP Education's current Operating Margin % of 10.97% is 17.4% 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 IDP Education and its competitors. For the Education industry, the median Operating Margin % is 9.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. IDP Education's current Operating Margin % is 10.97%, which is 32% below median its own 10-year median of 16.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IDP Education stock overvalued right now?
Based on GuruFocus' analysis, IDP Education (IDPUF) is currently considered Significantly Undervalued. The stock's GF Value™ is $5.67, compared to a current price of $2.03 — trading 64.2% below its estimated fair value. The current Operating Margin % is 10.97%, which is 32% below median its 10-year median of 16.15 and 17.4% above the Education industry median of 9.35. IDP Education's overall GF Score™ is 60/100 with 8 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 IDP Education (IDPUF), the current Operating Margin % is 10.97% 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 IDP Education (IDPUF) Overvalued in 2026?
Based on GuruFocus' analysis, IDP Education stock appears to be undervalued.
The current stock price of $2.03 is trading 64.2% below its estimated GF Value™ of $5.67.
GuruFocus considers IDP Education to be Significantly Undervalued.
Key valuation signals for IDPUF:
Operating Margin %: 10.97% (32% below median its 10-year median of 16.15)
GF Value™: $5.67 vs. price of $2.03 (64.2% below fair value)
Industry Position: 17.4% above the Education median (#150 of 258)
No single metric tells the full story. See the IDPUF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IDP Education performs English language testing and student placement services globally, constituting 31% and 57% of fiscal 2025 group gross profit, respectively. Additionally, IDP operates English language schools, organizes education events, and delivers consultancy services to education institutions, which constitutes the remainder of group gross profit. Originally established in Australia as an aid body for Southeast Asia, today IDP operates one of the world's most widely accepted English language tests and one of the world's largest student placement services businesses, predominantly connecting prospective migrants from India and China to Australia, Canada, and the United Kingdom.
60GF Score
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