On The Beach GroupLSE:OTB +1.92%81 Operating Margin % is 1.34% as of Mar. 2026, which is 93% below its 10-year median of 20.36. GuruFocus rates LSE:OTB with a GF Score™ of 81/100 and a GF Value™ of £1.92 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 844 Travel & Leisure companies, On The Beach Group ranks better than 83.06% on this metric.
On The Beach Group (LSE:OTB) 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.
On The Beach Group Operating Margin % Related Terms
On The Beach Group Operating Margin % Historical Data
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The historical data trend for On The Beach 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:OTB vs BKNG, ABNB, RCL: Operating Margin % Comparison
For the Travel Services subindustry, On The Beach 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.
On The Beach Group Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, On The Beach Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where On The Beach Group'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.
On The Beach Group'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.
On The Beach Group (LSE:OTB) has a Operating Margin % of 1.34% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on On The Beach Group and its competitors. This is 93% below median its historical median of 20.36. According to the industry distribution chart, On The Beach Group ranks #143 out of 844 companies in the Travel & Leisure industry, placing it in the top 16.9%.
Is On The Beach Group's Operating Margin % too high?
On The Beach Group's current Operating Margin % of 1.34% is 93% below median its 10-year median of 20.36. The Travel & Leisure industry median Operating Margin % is 8.14. On The Beach Group's value of 1.34% is 83.5% below this industry median. Based on the distribution chart, On The Beach Group ranks #143 out of 844 companies in the Travel & Leisure industry, which is in the top quartile — a strong position relative to peers. Overall, On The Beach Group has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does On The Beach Group's Operating Margin % compare to BKNG and ABNB?
According to the Travel & Leisure industry distribution chart, On The Beach Group ranks #143 out of 844 companies for Operating Margin %. This places On The Beach Group in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 8.14. On The Beach Group's value of 1.34% is 83.5% below this benchmark. While the company's 10-year median is 20.36 vs. the industry median of 8.14, On The Beach Group 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 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. On The Beach Group's current Operating Margin % of 1.34% is 83.5% 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 On The Beach Group and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. On The Beach Group's current Operating Margin % is 1.34%, which is 93% below median its own 10-year median of 20.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is On The Beach Group stock overvalued right now?
Based on GuruFocus' analysis, On The Beach Group (LSE:OTB) is currently considered Modestly Undervalued. The stock's GF Value™ is £1.92, compared to a current price of £1.70 — trading 11.6% below its estimated fair value. The current Operating Margin % is 1.34%, which is 93% below median its 10-year median of 20.36 and 83.5% below the Travel & Leisure industry median of 8.14. On The Beach Group's overall GF Score™ is 81/100 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 On The Beach Group (LSE:OTB), the current Operating Margin % is 1.34% 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 On The Beach Group (LSE:OTB) Overvalued in 2026?
Based on GuruFocus' analysis, On The Beach Group stock appears to be undervalued.
The current stock price of £1.70 is trading 11.6% below its estimated GF Value™ of £1.92.
GuruFocus considers On The Beach Group to be Modestly Undervalued.
Key valuation signals for LSE:OTB:
Operating Margin %: 1.34% (93% below median its 10-year median of 20.36)
GF Value™: £1.92 vs. price of £1.70 (11.6% below fair value)
Industry Position: 83.5% below the Travel & Leisure median (#143 of 844)
No single metric tells the full story. See the LSE:OTB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
On The Beach Group PLC is one of the UK's online retailers of beach holiday packages. It facilitates the customers to reach out to the suppliers of accommodation and airline tickets through its websites and telephone. The group organizes its operations into single opearting segment: OTB: activity via UK websites as B2C trader. The Group operates in two geographic locations United Kingdom and Republic of Ireland.
81GF Score
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