Oxford InstrumentsLSE:OXIG -1.09%78 Operating Margin % is 17.92% as of Mar. 2026, which is 28% above its 10-year median of 14.04. GuruFocus rates LSE:OXIG with a GF Score™ of 78/100 and a GF Value™ of £20.53 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 2,471 Hardware companies, Oxford Instruments ranks better than 85.84% on this metric.
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.
Oxford Instruments Operating Margin % Related Terms
Oxford Instruments Operating Margin % Historical Data
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The historical data trend for Oxford Instruments'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:OXIG vs COHR, KEYS, GRMN: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Oxford Instruments'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.
Oxford Instruments Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Oxford Instruments's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Oxford Instruments'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.
Oxford Instruments's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Oxford Instruments (LSE:OXIG) has a Operating Margin % of 17.92% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Oxford Instruments and its competitors. This is 28% above median its historical median of 14.04. Over the past decade, Oxford Instruments' Operating Margin % has ranged from 12.23 to 15.67. According to the industry distribution chart, Oxford Instruments ranks #350 out of 2471 companies in the Hardware industry, placing it in the top 14.2%.
Is Oxford Instruments' Operating Margin % too high?
Oxford Instruments' current Operating Margin % of 17.92% is 28% above median its 10-year median of 14.04. Over the past 10 years, this metric has ranged from a low of 12.23 to a high of 15.67. The Hardware industry median Operating Margin % is 3.80. Oxford Instruments' value of 17.92% is 371.6% above this industry median. Based on the distribution chart, Oxford Instruments ranks #350 out of 2471 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Oxford Instruments has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Oxford Instruments' Operating Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Oxford Instruments ranks #350 out of 2471 companies for Operating Margin %. This places Oxford Instruments in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Oxford Instruments' value of 17.92% is 371.6% above this benchmark. Historically, Oxford Instruments' own Operating Margin % has ranged from 12.23 to 15.67 over the past decade. While the company's 10-year median is 14.04 vs. the industry median of 3.80, Oxford Instruments 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,471 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. Oxford Instruments's current Operating Margin % of 17.92% is 371.6% 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 Oxford Instruments and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Oxford Instruments's current Operating Margin % is 17.92%, which is 28% above median its own 10-year median of 14.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Oxford Instruments stock overvalued right now?
Based on GuruFocus' analysis, Oxford Instruments (LSE:OXIG) is currently considered Significantly Overvalued. The stock's GF Value™ is £20.53, compared to a current price of £29.16 — trading 42% above its estimated fair value. The current Operating Margin % is 17.92%, which is 28% above median its 10-year median of 14.04 and 371.6% above the Hardware industry median of 3.80. Oxford Instruments' overall GF Score™ is 78/100 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 Oxford Instruments (LSE:OXIG), the current Operating Margin % is 17.92% 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 Oxford Instruments (LSE:OXIG) Overvalued in 2026?
Based on GuruFocus' analysis, Oxford Instruments stock appears to be overvalued.
The current stock price of £29.16 is trading 42% above its estimated GF Value™ of £20.53.
GuruFocus considers Oxford Instruments to be Significantly Overvalued.
Key valuation signals for LSE:OXIG:
Operating Margin %: 17.92% (28% above median its 10-year median of 14.04)
GF Value™: £20.53 vs. price of £29.16 (42% above fair value)
Industry Position: 371.6% above the Hardware median (#350 of 2471)
No single metric tells the full story. See the LSE:OXIG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Oxford Instruments PLC is engaged in researching, developing, manufacturing, renting, selling, and servicing high-technology tools and systems. The company's operating segment includes Materials and Characterisation; Research and Discovery and Service and Healthcare. It generates maximum revenue from the Materials and Characterisation segment. The Materials and Characterisation segment focuses on applied R&D and commercial customers, enabling the fabrication and characterization of materials and devices down to the atomic scale. Geographically, it derives a majority of its revenue from Asia and also has a presence in Europe, North America, and the Rest of the World.
78GF Score
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