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Aeorema CommunicationsLSE:AEO 58 Operating Margin % is 3.54% as of Jun. 2025, which is 39% below its 10-year median of 5.83. GuruFocus rates LSE:AEO with a GF Score™ of 58/100 and a GF Value™ of £0.79 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,013 Media - Diversified companies, Aeorema Communications ranks worse than 52.52% 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.
Aeorema Communications Operating Margin % Related Terms
Aeorema Communications Operating Margin % Historical Data
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The historical data trend for Aeorema Communications'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.
LSE:AEO vs NFLX, DIS, WBD: Operating Margin % Comparison
For the Entertainment subindustry, Aeorema Communications'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.
Aeorema Communications Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Aeorema Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Aeorema Communications'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.
Aeorema Communications's Operating Margin % for the fiscal year that ended in Jun. 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.
Aeorema Communications (LSE:AEO) has a Operating Margin % of 3.54% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Aeorema Communications and its competitors. This is 39% below median its historical median of 5.83. According to the industry distribution chart, Aeorema Communications ranks #532 out of 1013 companies in the Media - Diversified industry, placing it in the top 52.5%.
Is Aeorema Communications' Operating Margin % too high?
Aeorema Communications' current Operating Margin % of 3.54% is 39% below median its 10-year median of 5.83. The Media - Diversified industry median Operating Margin % is 2.42. Aeorema Communications' value of 3.54% is 46.3% above this industry median. Based on the distribution chart, Aeorema Communications ranks #532 out of 1013 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Aeorema Communications has a GF Score™ of 58/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Aeorema Communications' Operating Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, Aeorema Communications ranks #532 out of 1013 companies for Operating Margin %. This places Aeorema Communications in the lower half of its industry. The industry median Operating Margin % is 2.42. Aeorema Communications' value of 3.54% is 46.3% above this benchmark. While the company's 10-year median is 5.83 vs. the industry median of 2.42, Aeorema Communications 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.42, based on 1,013 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. Aeorema Communications's current Operating Margin % of 3.54% is 46.3% 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 Aeorema Communications and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.42 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Aeorema Communications's current Operating Margin % is 3.54%, which is 39% below median its own 10-year median of 5.83. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aeorema Communications stock overvalued right now?
Based on GuruFocus' analysis, Aeorema Communications (LSE:AEO) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.79, compared to a current price of £0.63 — trading 20.9% below its estimated fair value. The current Operating Margin % is 3.54%, which is 39% below median its 10-year median of 5.83 and 46.3% above the Media - Diversified industry median of 2.42. Aeorema Communications' overall GF Score™ is 58/100 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 Aeorema Communications (LSE:AEO), the current Operating Margin % is 3.54% as of Jun. 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 Aeorema Communications (LSE:AEO) Overvalued in 2026?
Based on GuruFocus' analysis, Aeorema Communications stock appears to be undervalued.
The current stock price of £0.63 is trading 20.9% below its estimated GF Value™ of £0.79.
GuruFocus considers Aeorema Communications to be Modestly Undervalued.
Key valuation signals for LSE:AEO:
Operating Margin %: 3.54% (39% below median its 10-year median of 5.83)
GF Value™: £0.79 vs. price of £0.63 (20.9% below fair value)
Industry Position: 46.3% above the Media - Diversified median (#532 of 1013)
No single metric tells the full story. See the LSE:AEO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aeorema Communications PLC is a live events company. The company specializes in devising and delivering corporate communication solutions. The company's customers are spread across the United Kingdom, the United States, and the rest of the world. The revenue generated by the company is derived from the provision of services like assisting clients with venue sourcing, event management, and incentive travel.
58GF Score
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