Mortgage Advice Bureau (Holdings) (LSE:MAB1) 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.
Mortgage Advice Bureau (Holdings) Operating Margin % Related Terms
Mortgage Advice Bureau (Holdings) Operating Margin % Historical Data
* 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.
Mortgage Advice Bureau (Holdings) Operating Margin % Chart
LSE:MAB1 vs RKT, FNMA, PFSI: Operating Margin % Comparison
For the Mortgage Finance subindustry, Mortgage Advice Bureau (Holdings)'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.
Mortgage Advice Bureau (Holdings) Operating Margin % vs Banks Industry
For the Banks industry and Financial Services sector, Mortgage Advice Bureau (Holdings)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mortgage Advice Bureau (Holdings)'s Operating Margin % falls into.
Mortgage Advice Bureau (Holdings) Operating Margin % Calculation
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.
* 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.
Mortgage Advice Bureau (Holdings) (LSE:MAB1) has a Operating Margin % of 9.93% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Mortgage Advice Bureau (Holdings) and its competitors. This is 16% below median its historical median of 11.79. Over the past decade, Mortgage Advice Bureau (Holdings)'s Operating Margin % has ranged from 7.65 to 12.86. According to the industry distribution chart, Mortgage Advice Bureau (Holdings) ranks #28 out of 48 companies in the Banks industry, placing it in the top 58.3%.
Is Mortgage Advice Bureau (Holdings)'s Operating Margin % too high?
Mortgage Advice Bureau (Holdings)'s current Operating Margin % of 9.93% is 16% below median its 10-year median of 11.79. Over the past 10 years, this metric has ranged from a low of 7.65 to a high of 12.86. The Banks industry median Operating Margin % is 18.14. Mortgage Advice Bureau (Holdings)'s value of 9.93% is 45.2% below this industry median. Based on the distribution chart, Mortgage Advice Bureau (Holdings) ranks #28 out of 48 companies in the Banks industry, which is below the industry midpoint. Overall, Mortgage Advice Bureau (Holdings) has a GF Score™ of 82/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Mortgage Advice Bureau (Holdings)'s Operating Margin % compare to RKT and FNMA?
According to the Banks industry distribution chart, Mortgage Advice Bureau (Holdings) ranks #28 out of 48 companies for Operating Margin %. This places Mortgage Advice Bureau (Holdings) in the lower half of its industry. The industry median Operating Margin % is 18.14. Mortgage Advice Bureau (Holdings)'s value of 9.93% is 45.2% below this benchmark. Historically, Mortgage Advice Bureau (Holdings)'s own Operating Margin % has ranged from 7.65 to 12.86 over the past decade. While the company's 10-year median is 11.79 vs. the industry median of 18.14, Mortgage Advice Bureau (Holdings) 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 Banks company?
The median Operating Margin % among Banks companies is 18.14, based on 48 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. Mortgage Advice Bureau (Holdings)'s current Operating Margin % of 9.93% is 45.2% 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 Mortgage Advice Bureau (Holdings) and its competitors. For the Banks industry, the median Operating Margin % is 18.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mortgage Advice Bureau (Holdings)'s current Operating Margin % is 9.93%, which is 16% below median its own 10-year median of 11.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mortgage Advice Bureau (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Mortgage Advice Bureau (Holdings) (LSE:MAB1) is currently considered Significantly Undervalued. The stock's GF Value™ is £9.55, compared to a current price of £5.26 — trading 44.9% below its estimated fair value. The current Operating Margin % is 9.93%, which is 16% below median its 10-year median of 11.79 and 45.2% below the Banks industry median of 18.14. Mortgage Advice Bureau (Holdings)'s overall GF Score™ is 82/100 with 2 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 Mortgage Advice Bureau (Holdings) (LSE:MAB1), the current Operating Margin % is 9.93% 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 Mortgage Advice Bureau (Holdings) (LSE:MAB1) Overvalued in 2026?
Based on GuruFocus' analysis, Mortgage Advice Bureau (Holdings) stock appears to be undervalued.
The current stock price of £5.26 is trading 44.9% below its estimated GF Value™ of £9.55.
GuruFocus considers Mortgage Advice Bureau (Holdings) to be Significantly Undervalued.
Key valuation signals for LSE:MAB1:
Operating Margin %: 9.93% (16% below median its 10-year median of 11.79)
GF Value™: £9.55 vs. price of £5.26 (44.9% below fair value)
Industry Position: 45.2% below the Banks median (#28 of 48)
No single metric tells the full story. See the LSE:MAB1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mortgage Advice Bureau (Holdings) Business Description
Mortgage Advice Bureau (Holdings) PLC provides mortgage advice and also advice on protection and general insurance products. The group offers advice on residential and buy-to-let mortgage products. The company has developed customized support services for intermediary firms that operate in estate agencies, new build, buy-to-let, mortgage shops and telephone-based mortgage services. The company derives its revenues from mortgage procuration fees, insurance commissions, and client fees. Mortgage procuration fees generate the majority of the revenues.
82GF Score
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