Adcorp HoldingsJSE:ADR -1.63%62 Operating Margin % is 1.78% as of Feb. 2026, which is 44% above its 10-year median of 1.24. GuruFocus rates JSE:ADR with a GF Score™ of 62/100 and a GF Value™ of R4.60 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,070 Business Services companies, Adcorp Holdings ranks worse than 71.59% 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.
Adcorp Holdings Operating Margin % Related Terms
Adcorp Holdings Operating Margin % Historical Data
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The historical data trend for Adcorp 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.
JSE:ADR vs KFY, RHI, TNET: Operating Margin % Comparison
For the Staffing & Employment Services subindustry, Adcorp 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.
Adcorp Holdings Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Adcorp Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Adcorp 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.
Adcorp Holdings's Operating Margin % for the fiscal year that ended in Feb. 2026 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.
Adcorp Holdings (JSE:ADR) has a Operating Margin % of 1.78% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Adcorp Holdings and its competitors. This is 44% above median its historical median of 1.24. According to the industry distribution chart, Adcorp Holdings ranks #766 out of 1070 companies in the Business Services industry, placing it in the top 71.6%.
Is Adcorp Holdings' Operating Margin % too high?
Adcorp Holdings' current Operating Margin % of 1.78% is 44% above median its 10-year median of 1.24. The Business Services industry median Operating Margin % is 6.33. Adcorp Holdings' value of 1.78% is 71.9% below this industry median. Based on the distribution chart, Adcorp Holdings ranks #766 out of 1070 companies in the Business Services industry, which is below the industry midpoint. Overall, Adcorp Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Adcorp Holdings' Operating Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, Adcorp Holdings ranks #766 out of 1070 companies for Operating Margin %. This places Adcorp Holdings in the lower half of its industry. The industry median Operating Margin % is 6.33. Adcorp Holdings' value of 1.78% is 71.9% below this benchmark. While the company's 10-year median is 1.24 vs. the industry median of 6.33, Adcorp Holdings has consistently been below 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 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. Adcorp Holdings's current Operating Margin % of 1.78% is 71.9% 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 Adcorp Holdings and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Adcorp Holdings's current Operating Margin % is 1.78%, which is 44% above median its own 10-year median of 1.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Adcorp Holdings stock overvalued right now?
Based on GuruFocus' analysis, Adcorp Holdings (JSE:ADR) is currently considered Significantly Overvalued. The stock's GF Value™ is R4.60, compared to a current price of R6.03 — trading 31.1% above its estimated fair value. The current Operating Margin % is 1.78%, which is 44% above median its 10-year median of 1.24 and 71.9% below the Business Services industry median of 6.33. Adcorp Holdings' overall GF Score™ is 62/100 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 Adcorp Holdings (JSE:ADR), the current Operating Margin % is 1.78% as of Feb. 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 Adcorp Holdings (JSE:ADR) Overvalued in 2026?
Based on GuruFocus' analysis, Adcorp Holdings stock appears to be overvalued.
The current stock price of R6.03 is trading 31.1% above its estimated GF Value™ of R4.60.
GuruFocus considers Adcorp Holdings to be Significantly Overvalued.
Key valuation signals for JSE:ADR:
Operating Margin %: 1.78% (44% above median its 10-year median of 1.24)
GF Value™: R4.60 vs. price of R6.03 (31.1% above fair value)
Industry Position: 71.9% below the Business Services median (#766 of 1070)
No single metric tells the full story. See the JSE:ADR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Adcorp Holdings Ltd is engaged in providing workplace solutions. The company renders services in the fields of permanent recruitment and flexible staffing sectors, professional IT services, as well as the provision of business process outsourcing, training, and financial services. Its operating segments are Contingent staffing, Professional Services, Business support. and Contingent staffing Australia. The geographical segments are South Africa and International.
62GF Score
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