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.
Laureate Education Operating Margin % Related Terms
Laureate Education Operating Margin % Historical Data
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The historical data trend for Laureate 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.
LAUR vs GHC, CVSA, LOPE: Operating Margin % Comparison
For the Education & Training Services subindustry, Laureate 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.
Laureate Education Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Laureate Education's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Laureate 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.
Laureate Education'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.
Laureate Education (LAUR) has a Operating Margin % of -10.09% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Laureate Education and its competitors. According to the industry distribution chart, Laureate Education ranks #51 out of 258 companies in the Education industry, placing it in the top 19.8%.
Is Laureate Education's Operating Margin % too high?
Laureate Education's current Operating Margin % is -10.09%. Based on the distribution chart, Laureate Education ranks #51 out of 258 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Laureate Education has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Laureate Education's Operating Margin % compare to GHC and CVSA?
According to the Education industry distribution chart, Laureate Education ranks #51 out of 258 companies for Operating Margin %. This places Laureate Education in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.35. 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. 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 Laureate 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. Laureate Education's current Operating Margin % is -10.09%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Laureate Education stock overvalued right now?
Based on GuruFocus' analysis, Laureate Education (LAUR) is currently considered Significantly Overvalued. The stock's GF Value™ is $22.51, compared to a current price of $36.69 — trading 63% above its estimated fair value. The current Operating Margin % is -10.09%. Laureate Education's overall GF Score™ is 70/100 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 Laureate Education (LAUR), the current Operating Margin % is -10.09% as of Mar. 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 Laureate Education (LAUR) Overvalued in 2026?
Based on GuruFocus' analysis, Laureate Education stock appears to be overvalued.
The current stock price of $36.69 is trading 63% above its estimated GF Value™ of $22.51.
GuruFocus considers Laureate Education to be Significantly Overvalued.
Key valuation signals for LAUR:
Operating Margin %: -10.09%
GF Value™: $22.51 vs. price of $36.69 (63% above fair value)
No single metric tells the full story. See the LAUR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Laureate Education Inc is an international community of universities. The company provides higher education programs and services to students through an international network of licensed universities and higher education institutions. Its reportable segments include Peru and Mexico, of which Mexico derives maximum revenue. Geographically, the company operates in Mexico, Peru and United States.
70GF Score
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