Labat AfricaJSE:LAB +66.67% Operating Margin % is 64.86% as of Nov. 2025. The stock has 5 warning signs investors should review. Among 955 Drug Manufacturers companies, Labat Africa ranks better than 98.74% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Labat Africa's Operating Income for the
six
months ended in Nov. 2025 was R97.9 Mil. Labat Africa's Revenue for the
six
months ended in Nov. 2025 was R150.9 Mil. Therefore, Labat Africa's Operating Margin % for the quarter that ended in Nov. 2025 was 64.86%.
Warning Sign:
Labat Africa Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -37.4%.
The historical rank and industry rank for Labat Africa's Operating Margin % or its related term are showing as below:
JSE:LAB'
s Operating Margin % Range Over the Past 10 Years
Min: -168.13 Med: -52.69 Max: 47.28
Current: 47.28
JSE:LAB's Operating Margin % is ranked better than 98.74% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs JSE:LAB: 47.28
Labat Africa's 5-Year Average Operating Margin % Growth Rate was -37.40% per year.
Labat Africa's Operating Income for the
six
months ended in Nov. 2025 was R97.9 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Nov. 2025 was R149.9 Mil.
Labat Africa (JSE:LAB) 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.
Labat Africa Operating Margin % Related Terms
Labat Africa Operating Margin % Historical Data
* Premium members only.
The historical data trend for Labat Africa'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:LAB vs ZTS, UTHR, VTRS: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Labat Africa'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.
Labat Africa Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Labat Africa's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Labat Africa'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.
Labat Africa'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.
Labat Africa (JSE:LAB) has a Operating Margin % of 64.86% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Labat Africa and its competitors. According to the industry distribution chart, Labat Africa ranks #12 out of 955 companies in the Drug Manufacturers industry, placing it in the top 1.3%.
Is Labat Africa's Operating Margin % too high?
Labat Africa's current Operating Margin % is 64.86%. The Drug Manufacturers industry median Operating Margin % is 7.45. Labat Africa's value of 64.86% is 770.6% above this industry median. Based on the distribution chart, Labat Africa ranks #12 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers.
How does Labat Africa's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Labat Africa ranks #12 out of 955 companies for Operating Margin %. This places Labat Africa in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Labat Africa's value of 64.86% is 770.6% 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Labat Africa's current Operating Margin % of 64.86% is 770.6% 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 Labat Africa and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Labat Africa's current Operating Margin % is 64.86%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Labat Africa stock overvalued right now?
Based on GuruFocus' analysis, Labat Africa (JSE:LAB) is currently considered Possible Value Trap. The stock's GF Value™ is R0.22, compared to a current price of R0.05 — trading 77.3% below its estimated fair value. The current Operating Margin % is 64.86% and 770.6% above the Drug Manufacturers industry median of 7.45. 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 Labat Africa (JSE:LAB), the current Operating Margin % is 64.86% as of Nov. 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.
Labat Africa Ltd is an investment holding company. Through its subsidiaries, the company operates in the following segments; Technology, Head office, and Healthcare. The Technology segment manufactures and distributes integrated circuits South African Micro - Electronic Systems. Head office operations provide management services, logistics and seeks further investment opportunities for the Group. The Healthcare segment generates maximum revenue for the company and focusses on medical cannabis industry in South Africa. Geographically, the company carries out its business operations in South Africa.
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