HerculesLSE:HERC 57 Operating Margin % is 0.68% as of Mar. 2026, which is 79% below its 10-year median of 3.19. GuruFocus rates LSE:HERC with a GF Score™ of 57/100 and a GF Value™ of £0.43 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 1,070 Business Services companies, Hercules ranks worse than 76.36% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Hercules's Operating Income for the
six
months ended in Mar. 2026 was £0.4 Mil. Hercules's Revenue for the
six
months ended in Mar. 2026 was £59.2 Mil. Therefore, Hercules's Operating Margin % for the quarter that ended in Mar. 2026 was 0.68%.
Warning Sign:
Hercules PLC operating margin has been in a 5-year decline. The average rate of decline per year is -5.2%.
The historical rank and industry rank for Hercules's Operating Margin % or its related term are showing as below:
LSE:HERC'
s Operating Margin % Range Over the Past 10 Years
Min: 0.28 Med: 3.19 Max: 5.07
Current: 0.28
LSE:HERC's Operating Margin % is ranked worse than 76.36% of 1070
companies
in the Business Services industry
Industry Median: 6.33
vs LSE:HERC: 0.28
Hercules's 5-Year Average Operating Margin % Growth Rate was -5.20% per year.
Hercules's Operating Income for the
six
months ended in Mar. 2026 was £0.4 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was £0.3 Mil.
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.
Hercules Operating Margin % Related Terms
Hercules Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hercules'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:HERC vs KFY, RHI, TNET: Operating Margin % Comparison
For the Staffing & Employment Services subindustry, Hercules'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.
Hercules Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Hercules's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hercules'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.
Hercules's Operating Margin % for the fiscal year that ended in Sep. 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.
Hercules (LSE:HERC) has a Operating Margin % of 0.68% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hercules and its competitors. This is 79% below median its historical median of 3.19. Over the past decade, Hercules' Operating Margin % has ranged from 0.28 to 5.07. According to the industry distribution chart, Hercules ranks #817 out of 1070 companies in the Business Services industry, placing it in the top 76.4%.
Is Hercules' Operating Margin % too high?
Hercules' current Operating Margin % of 0.68% is 79% below median its 10-year median of 3.19. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 5.07. The Business Services industry median Operating Margin % is 6.33. Hercules' value of 0.68% is 89.3% below this industry median. Based on the distribution chart, Hercules ranks #817 out of 1070 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Hercules has a GF Score™ of 57/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hercules' Operating Margin % compare to KFY and RHI?
According to the Business Services industry distribution chart, Hercules ranks #817 out of 1070 companies for Operating Margin %. This places Hercules in the lower half of its industry. The industry median Operating Margin % is 6.33. Hercules' value of 0.68% is 89.3% below this benchmark. Historically, Hercules' own Operating Margin % has ranged from 0.28 to 5.07 over the past decade. While the company's 10-year median is 3.19 vs. the industry median of 6.33, Hercules has consistently been below 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. Hercules's current Operating Margin % of 0.68% is 89.3% below 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 Hercules 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. Hercules's current Operating Margin % is 0.68%, which is 79% below median its own 10-year median of 3.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hercules stock overvalued right now?
Based on GuruFocus' analysis, Hercules (LSE:HERC) is currently considered Possible Value Trap. The stock's GF Value™ is £0.43, compared to a current price of £0.22 — trading 48.8% below its estimated fair value. The current Operating Margin % is 0.68%, which is 79% below median its 10-year median of 3.19 and 89.3% below the Business Services industry median of 6.33. Hercules' overall GF Score™ is 57/100 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 Hercules (LSE:HERC), the current Operating Margin % is 0.68% 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 Hercules (LSE:HERC) Overvalued in 2026?
Based on GuruFocus' analysis, Hercules stock appears to be undervalued.
The current stock price of £0.22 is trading 48.8% below its estimated GF Value™ of £0.43.
GuruFocus considers Hercules to be Possible Value Trap.
Key valuation signals for LSE:HERC:
Operating Margin %: 0.68% (79% below median its 10-year median of 3.19)
GF Value™: £0.43 vs. price of £0.22 (48.8% below fair value)
Industry Position: 89.3% below the Business Services median (#817 of 1070)
No single metric tells the full story. See the LSE:HERC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hercules PLC is a technology-enabled labour supply company for the UK infrastructure and construction sectors. The company provides general labour for highway projects, specialised operators for the water sector, and health and well-being support. The segments of the company are Labour supply engaged in the provision of labour to customers Civil projects represents work performed under contracts with customers to undertake construction and/or civil engineering work, and Other activities. The company derives maximum revenue from Labour supply segment. Labour supply is engaged in providing flexible and reliable workforce solutions tailored to meet the demands of each project.
57GF Score
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