Avacta GroupLSE:AVCT +0.28%28 Operating Margin % is -28,680.70% as of Dec. 2025. GuruFocus rates LSE:AVCT with a GF Score™ of 28/100 and a GF Value™ of £0.49 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 945 Biotechnology companies, Avacta Group ranks worse than 96.3% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Avacta Group's Operating Income for the
six
months ended in Dec. 2025 was £-16.35 Mil. Avacta Group's Revenue for the
six
months ended in Dec. 2025 was £0.06 Mil. Therefore, Avacta Group's Operating Margin % for the quarter that ended in Dec. 2025 was -28,680.70%.
Warning Sign:
Avacta Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -122%.
The historical rank and industry rank for Avacta Group's Operating Margin % or its related term are showing as below:
LSE:AVCT'
s Operating Margin % Range Over the Past 10 Years
Min: -28151.33 Med: -574.64 Max: -174.3
Current: -26053.1
LSE:AVCT's Operating Margin % is ranked worse than 96.3% of 945
companies
in the Biotechnology industry
Industry Median: -86.77
vs LSE:AVCT: -26053.10
Avacta Group's 5-Year Average Operating Margin % Growth Rate was -122.00% per year.
Avacta Group's Operating Income for the
six
months ended in Dec. 2025 was £-16.35 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £-29.44 Mil.
Avacta Group (LSE:AVCT) 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.
Avacta Group Operating Margin % Related Terms
Avacta Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Avacta Group'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:AVCT vs VRTX, REGN, ALNY: Operating Margin % Comparison
For the Biotechnology subindustry, Avacta Group'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.
Avacta Group Operating Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Avacta Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Avacta Group'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.
Avacta Group'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.
What does a Operating Margin % of -28,680.70% mean?
Avacta Group (LSE:AVCT) has a Operating Margin % of -28,680.70% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Avacta Group and its competitors. According to the industry distribution chart, Avacta Group ranks #910 out of 945 companies in the Biotechnology industry, placing it in the top 96.3%.
Is Avacta Group's Operating Margin % too high?
Avacta Group's current Operating Margin % is -28,680.70%. Based on the distribution chart, Avacta Group ranks #910 out of 945 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Avacta Group has a GF Score™ of 28/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Avacta Group's Operating Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Avacta Group ranks #910 out of 945 companies for Operating Margin %. This places Avacta Group in the lower half of its industry. 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 Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. 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 Avacta Group and its competitors. Avacta Group's current Operating Margin % is -28,680.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avacta Group stock overvalued right now?
Based on GuruFocus' analysis, Avacta Group (LSE:AVCT) is currently considered Significantly Overvalued. The stock's GF Value™ is £0.49, compared to a current price of £0.72 — trading 47.3% above its estimated fair value. The current Operating Margin % is -28,680.70%. Avacta Group's overall GF Score™ is 28/100 with 8 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 Avacta Group (LSE:AVCT), the current Operating Margin % is -28,680.70% 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 Avacta Group (LSE:AVCT) Overvalued in 2026?
Based on GuruFocus' analysis, Avacta Group stock appears to be overvalued.
The current stock price of £0.72 is trading 47.3% above its estimated GF Value™ of £0.49.
GuruFocus considers Avacta Group to be Significantly Overvalued.
Key valuation signals for LSE:AVCT:
Operating Margin %: -28,680.70%
GF Value™: £0.49 vs. price of £0.72 (47.3% above fair value)
No single metric tells the full story. See the LSE:AVCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avacta Group PLC is a clinical-stage life sciences company expanding the reach of potent cancer therapies with the pre-CISION platform. pre-CISION is a proprietary warhead delivery system based on a tumor-specific protease (fibroblast activation protein or FAP) that is designed to concentrate potent warheads in the tumor microenvironment while sparing normal tissues. The company's pipeline consists of pre-CISION peptide drug conjugates (PDC) or Affimer drug conjugates (AffDC) that leverage the tumor-specific release mechanism, providing benefits over traditional antibody drug conjugates. The firm has one reportable segment, Therapeutics, which is engaged in the development of novel cancer therapies harnessing its proprietary technology. Geographically, it derives revenue from South Korea.
28GF Score
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