Orchard Funding GroupLSE:ORCH 50 Operating Margin % is 37.76% as of Jul. 2025, which is 7% above its 10-year median of 35.36. GuruFocus rates LSE:ORCH with a GF Score™ of 50/100 and a GF Value™ of £0.72 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 412 Credit Services companies, Orchard Funding Group ranks better than 75.24% on this metric.
Orchard Funding Group (LSE:ORCH) 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.
Orchard Funding Group Operating Margin % Related Terms
Orchard Funding Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Orchard Funding 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:ORCH vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Orchard Funding 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.
Orchard Funding Group Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Orchard Funding Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Orchard Funding Group's Operating Margin % falls into.
Orchard Funding Group 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.
Orchard Funding Group's Operating Margin % for the fiscal year that ended in Jul. 2024 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.
Orchard Funding Group (LSE:ORCH) has a Operating Margin % of 37.76% as of Jul. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Orchard Funding Group and its competitors. This is near median its historical median of 35.36. Over the past decade, Orchard Funding Group's Operating Margin % has ranged from 20.04 to 42.19. According to the industry distribution chart, Orchard Funding Group ranks #102 out of 412 companies in the Credit Services industry, placing it in the top 24.8%.
Is Orchard Funding Group's Operating Margin % too high?
Orchard Funding Group's current Operating Margin % of 37.76% is near median its 10-year median of 35.36. Over the past 10 years, this metric has ranged from a low of 20.04 to a high of 42.19. The Credit Services industry median Operating Margin % is 17.33. Orchard Funding Group's value of 37.76% is 118% above this industry median. Based on the distribution chart, Orchard Funding Group ranks #102 out of 412 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Orchard Funding Group has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Orchard Funding Group's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Orchard Funding Group ranks #102 out of 412 companies for Operating Margin %. This places Orchard Funding Group in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 17.33. Orchard Funding Group's value of 37.76% is 118% above this benchmark. Historically, Orchard Funding Group's own Operating Margin % has ranged from 20.04 to 42.19 over the past decade. While the company's 10-year median is 35.36 vs. the industry median of 17.33, Orchard Funding Group 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 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. Orchard Funding Group's current Operating Margin % of 37.76% is 118% 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 Orchard Funding Group and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orchard Funding Group's current Operating Margin % is 37.76%, which is near median its own 10-year median of 35.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orchard Funding Group stock overvalued right now?
Based on GuruFocus' analysis, Orchard Funding Group (LSE:ORCH) is currently considered Modestly Undervalued. The stock's GF Value™ is £0.72, compared to a current price of £0.58 — trading 20.1% below its estimated fair value. The current Operating Margin % is 37.76%, which is near median its 10-year median of 35.36 and 118% above the Credit Services industry median of 17.33. Orchard Funding Group's overall GF Score™ is 50/100 with 7 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 Orchard Funding Group (LSE:ORCH), the current Operating Margin % is 37.76% as of Jul. 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 Orchard Funding Group (LSE:ORCH) Overvalued in 2026?
Based on GuruFocus' analysis, Orchard Funding Group stock appears to be undervalued.
The current stock price of £0.58 is trading 20.1% below its estimated GF Value™ of £0.72.
GuruFocus considers Orchard Funding Group to be Modestly Undervalued.
Key valuation signals for LSE:ORCH:
Operating Margin %: 37.76% (near median its 10-year median of 35.36)
GF Value™: £0.72 vs. price of £0.58 (20.1% below fair value)
Industry Position: 118% above the Credit Services median (#102 of 412)
No single metric tells the full story. See the LSE:ORCH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Orchard Funding Group PLC is a finance company that specializes in insurance premium finance and the professional fee funding market. The company mainly provides funding and funding support systems to clients of insurance brokers and professional firms. It aims to further increase the capital base to enable it to support higher levels of borrowing. It operates in two segments: lending for Toyota products, and other lending. The company operates within the United Kingdom.
50GF Score
Get the complete analysis for LSE:ORCH
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LSE:ORCH has been successfully added to your 
