ME Group InternationalLSE:MEGP +2.18%76 Operating Margin % is 27.30% as of Oct. 2025, which is 26% above its 10-year median of 21.61. GuruFocus rates LSE:MEGP with a GF Score™ of 76/100 and a GF Value™ of £1.82 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 3,038 Industrial Products companies, ME Group International ranks better than 95.79% on this metric.
ME Group International PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for ME Group International's Operating Margin % or its related term are showing as below:
LSE:MEGP'
s Operating Margin % Range Over the Past 10 Years
Min: 2.97 Med: 21.61 Max: 24.49
Current: 24.49
LSE:MEGP's Operating Margin % is ranked better than 95.79% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs LSE:MEGP: 24.49
ME Group International's 5-Year Average Operating Margin % Growth Rate was 36.70% per year.
ME Group International (LSE:MEGP) 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.
ME Group International Operating Margin % Related Terms
ME Group International Operating Margin % Historical Data
* Premium members only.
The historical data trend for ME Group International'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.
ME Group International Operating Margin % Competitor Comparison
For the Business Equipment & Supplies subindustry, ME Group International'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.
ME Group International Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, ME Group International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ME Group International's Operating Margin % falls into.
ME Group International 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.
ME Group International's Operating Margin % for the fiscal year that ended in Oct. 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.
ME Group International (LSE:MEGP) has a Operating Margin % of 27.30% as of Oct. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on ME Group International and its competitors. This is 26% above median its historical median of 21.61. Over the past decade, ME Group International's Operating Margin % has ranged from 2.97 to 24.49. According to the industry distribution chart, ME Group International ranks #128 out of 3038 companies in the Industrial Products industry, placing it in the top 4.2%.
Is ME Group International's Operating Margin % too high?
ME Group International's current Operating Margin % of 27.30% is 26% above median its 10-year median of 21.61. Over the past 10 years, this metric has ranged from a low of 2.97 to a high of 24.49. The Industrial Products industry median Operating Margin % is 6.53. ME Group International's value of 27.30% is 318.1% above this industry median. Based on the distribution chart, ME Group International ranks #128 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, ME Group International has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ME Group International's Operating Margin % compare to competitors?
According to the Industrial Products industry distribution chart, ME Group International ranks #128 out of 3038 companies for Operating Margin %. This places ME Group International in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. ME Group International's value of 27.30% is 318.1% above this benchmark. Historically, ME Group International's own Operating Margin % has ranged from 2.97 to 24.49 over the past decade. While the company's 10-year median is 21.61 vs. the industry median of 6.53, ME Group International 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. ME Group International's current Operating Margin % of 27.30% is 318.1% 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 ME Group International and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ME Group International's current Operating Margin % is 27.30%, which is 26% above median its own 10-year median of 21.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ME Group International stock overvalued right now?
Based on GuruFocus' analysis, ME Group International (LSE:MEGP) is currently considered Significantly Undervalued. The stock's GF Value™ is £1.82, compared to a current price of £1.03 — trading 43.3% below its estimated fair value. The current Operating Margin % is 27.30%, which is 26% above median its 10-year median of 21.61 and 318.1% above the Industrial Products industry median of 6.53. ME Group International's overall GF Score™ is 76/100 with 1 warning sign 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 ME Group International (LSE:MEGP), the current Operating Margin % is 27.30% as of Oct. 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 ME Group International (LSE:MEGP) Overvalued in 2026?
Based on GuruFocus' analysis, ME Group International stock appears to be undervalued.
The current stock price of £1.03 is trading 43.3% below its estimated GF Value™ of £1.82.
GuruFocus considers ME Group International to be Significantly Undervalued.
Key valuation signals for LSE:MEGP:
Operating Margin %: 27.30% (26% above median its 10-year median of 21.61)
GF Value™: £1.82 vs. price of £1.03 (43.3% below fair value)
Industry Position: 318.1% above the Industrial Products median (#128 of 3038)
No single metric tells the full story. See the LSE:MEGP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ME Group International PLC operates, sells and services a wide range of instant-service vending equipment, aimed at the consumer market. The group operates vending units across 20 countries and its technological innovation is focused on four principal areas namely Photobooths and integrated biometric identification solutions; Unattended laundry services and launderettes; High-quality digital printigg kiosks and Vending equipment for the food service market. Geographically, the company reports its segments and operates in UK & Republic of Ireland, Asia Pacific and Continental Europe, which is the majority revenue generator.
76GF Score
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