IG Group HoldingsIGGHY 87 Operating Margin % is 36.66% as of May. 2025, which is 11% below its 10-year median of 41.11. GuruFocus rates IGGHY with a GF Score™ of 87/100 and a GF Value™ of $16.07 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 664 Capital Markets companies, IG Group Holdings ranks better than 73.95% on this metric.
IG Group Holdings (OTCPK:IGGHY) 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.
IG Group Holdings Operating Margin % Related Terms
IG Group Holdings Operating Margin % Historical Data
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The historical data trend for IG Group Holdings'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.
IGGHY vs MS, GS, SCHW: Operating Margin % Comparison
For the Capital Markets subindustry, IG Group 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.
IG Group Holdings Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, IG Group Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where IG Group 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.
IG Group Holdings's Operating Margin % for the fiscal year that ended in May. 2024 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.
IG Group Holdings (IGGHY) has a Operating Margin % of 36.66% as of May. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on IG Group Holdings and its competitors. This is 11% below median its historical median of 41.11. Over the past decade, IG Group Holdings' Operating Margin % has ranged from 28.43 to 53.48. According to the industry distribution chart, IG Group Holdings ranks #173 out of 664 companies in the Capital Markets industry, placing it in the top 26.1%.
Is IG Group Holdings' Operating Margin % too high?
IG Group Holdings' current Operating Margin % of 36.66% is 11% below median its 10-year median of 41.11. Over the past 10 years, this metric has ranged from a low of 28.43 to a high of 53.48. The Capital Markets industry median Operating Margin % is 6.96. IG Group Holdings' value of 36.66% is 427.1% above this industry median. Based on the distribution chart, IG Group Holdings ranks #173 out of 664 companies in the Capital Markets industry, which is above the industry midpoint. Overall, IG Group Holdings has a GF Score™ of 87/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does IG Group Holdings' Operating Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, IG Group Holdings ranks #173 out of 664 companies for Operating Margin %. This puts IG Group Holdings in the upper half of its industry. The industry median Operating Margin % is 6.96. IG Group Holdings' value of 36.66% is 427.1% above this benchmark. Historically, IG Group Holdings' own Operating Margin % has ranged from 28.43 to 53.48 over the past decade. While the company's 10-year median is 41.11 vs. the industry median of 6.96, IG Group 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 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. IG Group Holdings's current Operating Margin % of 36.66% is 427.1% 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 IG Group Holdings 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. IG Group Holdings's current Operating Margin % is 36.66%, which is 11% below median its own 10-year median of 41.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is IG Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, IG Group Holdings (IGGHY) is currently considered Significantly Overvalued. The stock's GF Value™ is $16.07, compared to a current price of $25.00 — trading 55.6% above its estimated fair value. The current Operating Margin % is 36.66%, which is 11% below median its 10-year median of 41.11 and 427.1% above the Capital Markets industry median of 6.96. IG Group Holdings' overall GF Score™ is 87/100 with 9 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 IG Group Holdings (IGGHY), the current Operating Margin % is 36.66% as of May. 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 IG Group Holdings (IGGHY) Overvalued in 2026?
Based on GuruFocus' analysis, IG Group Holdings stock appears to be overvalued.
The current stock price of $25.00 is trading 55.6% above its estimated GF Value™ of $16.07.
GuruFocus considers IG Group Holdings to be Significantly Overvalued.
Key valuation signals for IGGHY:
Operating Margin %: 36.66% (11% below median its 10-year median of 41.11)
GF Value™: $16.07 vs. price of $25.00 (55.6% above fair value)
Industry Position: 427.1% above the Capital Markets median (#173 of 664)
No single metric tells the full story. See the IGGHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
IG Group Holdings PLC provides online trading services to its clients. The majority of the company's revenue stems from its derivative products and contracts for difference (CFDs). The company operates through various segments which are The U.K. segment which derives its revenue from financial spread bets, CFDs, binary options, and execution-only stockbroking. The Australian segment derives its revenue from CFDs and binary options. The European segment derives its revenue from CFDs, binary options, and execution-only stockbroking. The Rest of the World segment derives its revenue from the operation of a regulated futures and options exchange as well as CFDs and binary options. The company generates more than half of its revenue from the U.K., followed by Europe and Australia.
87GF Score
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