London SecurityLSE:LSC 88 Operating Margin % is 15.91% as of Dec. 2025, which is 4% below its 10-year median of 16.49. GuruFocus rates LSE:LSC with a GF Score™ of 88/100 and a GF Value™ of £39.10 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,070 Business Services companies, London Security ranks better than 74.11% on this metric.
London Security (LSE:LSC) 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.
London Security Operating Margin % Related Terms
London Security Operating Margin % Historical Data
* Premium members only.
The historical data trend for London Security'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:LSC vs ALLE, MSA, ADT: Operating Margin % Comparison
For the Security & Protection Services subindustry, London Security'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.
London Security Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, London Security's Operating Margin % distribution charts can be found below:
* The bar in red indicates where London Security'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.
London Security'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.
London Security (LSE:LSC) has a Operating Margin % of 15.91% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on London Security and its competitors. This is near median its historical median of 16.49. Over the past decade, London Security's Operating Margin % has ranged from 13.37 to 18.17. According to the industry distribution chart, London Security ranks #277 out of 1070 companies in the Business Services industry, placing it in the top 25.9%.
Is London Security's Operating Margin % too high?
London Security's current Operating Margin % of 15.91% is near median its 10-year median of 16.49. Over the past 10 years, this metric has ranged from a low of 13.37 to a high of 18.17. The Business Services industry median Operating Margin % is 6.33. London Security's value of 15.91% is 151.3% above this industry median. Based on the distribution chart, London Security ranks #277 out of 1070 companies in the Business Services industry, which is above the industry midpoint. Overall, London Security has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does London Security's Operating Margin % compare to ALLE and MSA?
According to the Business Services industry distribution chart, London Security ranks #277 out of 1070 companies for Operating Margin %. This puts London Security in the upper half of its industry. The industry median Operating Margin % is 6.33. London Security's value of 15.91% is 151.3% above this benchmark. Historically, London Security's own Operating Margin % has ranged from 13.37 to 18.17 over the past decade. While the company's 10-year median is 16.49 vs. the industry median of 6.33, London Security 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. London Security's current Operating Margin % of 15.91% is 151.3% 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 London Security 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. London Security's current Operating Margin % is 15.91%, which is near median its own 10-year median of 16.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is London Security stock overvalued right now?
Based on GuruFocus' analysis, London Security (LSE:LSC) is currently considered Modestly Undervalued. The stock's GF Value™ is £39.10, compared to a current price of £34.00 — trading 13% below its estimated fair value. The current Operating Margin % is 15.91%, which is near median its 10-year median of 16.49 and 151.3% above the Business Services industry median of 6.33. London Security's overall GF Score™ is 88/100 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 London Security (LSE:LSC), the current Operating Margin % is 15.91% 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 London Security (LSE:LSC) Overvalued in 2026?
Based on GuruFocus' analysis, London Security stock appears to be undervalued.
The current stock price of £34.00 is trading 13% below its estimated GF Value™ of £39.10.
GuruFocus considers London Security to be Modestly Undervalued.
Key valuation signals for LSE:LSC:
Operating Margin %: 15.91% (near median its 10-year median of 16.49)
GF Value™: £39.10 vs. price of £34.00 (13% below fair value)
Industry Position: 151.3% above the Business Services median (#277 of 1070)
No single metric tells the full story. See the LSE:LSC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
London Security PLC is an investment holding company that provides fire protection services and products. The business activity of the group functions through the United Kingdom, Belgium, the Netherlands, Austria, and the Rest of Europe. It derives revenue from the Outright sale of equipment, Maintenance, service, installation, and Equipment rental activity. The company's products are marketed under the Nu-Swift, Ansul, Total, and Master brands. The group operates in a single segment, which is the provision and maintenance of fire protection and security equipment in Europe.
88GF Score
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