AvationLSE:AVAP +0.36%65 Operating Margin % is 22.82% as of Dec. 2025, which is 21% above its 10-year median of 18.93. GuruFocus rates LSE:AVAP with a GF Score™ of 65/100 and a GF Value™ of £1.49 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,070 Business Services companies, Avation ranks better than 89.25% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Avation's Operating Income for the
six
months ended in Dec. 2025 was £10.18 Mil. Avation's Revenue for the
six
months ended in Dec. 2025 was £44.59 Mil. Therefore, Avation's Operating Margin % for the quarter that ended in Dec. 2025 was 22.82%.
The historical rank and industry rank for Avation's Operating Margin % or its related term are showing as below:
LSE:AVAP'
s Operating Margin % Range Over the Past 10 Years
Min: -27 Med: 18.93 Max: 22.92
Current: 22.03
LSE:AVAP's Operating Margin % is ranked better than 89.25% of 1070
companies
in the Business Services industry
Industry Median: 6.33
vs LSE:AVAP: 22.03
Avation's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Avation's Operating Income for the
six
months ended in Dec. 2025 was £10.18 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £19.38 Mil.
Avation (LSE:AVAP) 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.
Avation Operating Margin % Related Terms
Avation Operating Margin % Historical Data
* Premium members only.
The historical data trend for Avation'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:AVAP vs URI, SUNB, AER: Operating Margin % Comparison
For the Rental & Leasing Services subindustry, Avation'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.
Avation Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Avation's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Avation'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.
Avation's Operating Margin % for the fiscal year that ended in Jun. 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.
Avation (LSE:AVAP) has a Operating Margin % of 22.82% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Avation and its competitors. This is 21% above median its historical median of 18.93. According to the industry distribution chart, Avation ranks #115 out of 1070 companies in the Business Services industry, placing it in the top 10.7%.
Is Avation's Operating Margin % too high?
Avation's current Operating Margin % of 22.82% is 21% above median its 10-year median of 18.93. The Business Services industry median Operating Margin % is 6.33. Avation's value of 22.82% is 260.5% above this industry median. Based on the distribution chart, Avation ranks #115 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Avation has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Avation's Operating Margin % compare to URI and SUNB?
According to the Business Services industry distribution chart, Avation ranks #115 out of 1070 companies for Operating Margin %. This places Avation in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.33. Avation's value of 22.82% is 260.5% above this benchmark. While the company's 10-year median is 18.93 vs. the industry median of 6.33, Avation 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 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. Avation's current Operating Margin % of 22.82% is 260.5% 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 Avation 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. Avation's current Operating Margin % is 22.82%, which is 21% above median its own 10-year median of 18.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avation stock overvalued right now?
Based on GuruFocus' analysis, Avation (LSE:AVAP) is currently considered Fairly Valued. The stock's GF Value™ is £1.49, compared to a current price of £1.38 — trading 7.7% below its estimated fair value. The current Operating Margin % is 22.82%, which is 21% above median its 10-year median of 18.93 and 260.5% above the Business Services industry median of 6.33. Avation's overall GF Score™ is 65/100 with 5 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 Avation (LSE:AVAP), the current Operating Margin % is 22.82% as of Dec. 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 Avation (LSE:AVAP) Overvalued in 2026?
Based on GuruFocus' analysis, Avation stock appears to be undervalued.
The current stock price of £1.38 is trading 7.7% below its estimated GF Value™ of £1.49.
GuruFocus considers Avation to be Fairly Valued.
Key valuation signals for LSE:AVAP:
Operating Margin %: 22.82% (21% above median its 10-year median of 18.93)
GF Value™: £1.49 vs. price of £1.38 (7.7% below fair value)
Industry Position: 260.5% above the Business Services median (#115 of 1070)
No single metric tells the full story. See the LSE:AVAP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avation PLC is a commercial passenger aircraft leasing company that owns a fleet of aircraft that it leases to airlines across the world. The company's fleet includes Airbus A330, A321, A320, and A220 aircraft, B777-300ER aircraft, and ATR 72 aircraft. Some of its customers include EasyJet, EVA Air, Philippine Airlines, Alliance Air India, and VietJet Air among others. Geographically, the company derives a majority of its revenue from its customers in the Asia Pacific region and the rest from Europe.
65GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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