Petards GroupLSE:PEG Operating Margin % is -3.53% as of Dec. 2025. The stock has 1 warning sign investors should review. Among 1,070 Business Services companies, Petards Group ranks worse than 81.31% on this metric.
Petards Group (LSE:PEG) 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.
Petards Group Operating Margin % Related Terms
Petards Group Operating Margin % Historical Data
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The historical data trend for Petards 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:PEG vs ALLE, MSA, ADT: Operating Margin % Comparison
For the Security & Protection Services subindustry, Petards 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.
Petards Group Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Petards Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Petards 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.
Petards Group's Operating Margin % for the fiscal year that ended in Dec. 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.
Petards Group (LSE:PEG) has a Operating Margin % of -3.53% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Petards Group and its competitors. According to the industry distribution chart, Petards Group ranks #870 out of 1070 companies in the Business Services industry, placing it in the top 81.3%.
Is Petards Group's Operating Margin % too high?
Petards Group's current Operating Margin % is -3.53%. Based on the distribution chart, Petards Group ranks #870 out of 1070 companies in the Business Services industry, which is in the bottom quartile relative to peers.
How does Petards Group's Operating Margin % compare to ALLE and MSA?
According to the Business Services industry distribution chart, Petards Group ranks #870 out of 1070 companies for Operating Margin %. This places Petards Group in the lower half of its industry. The industry median Operating Margin % is 6.33. 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 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. 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 Petards Group and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Petards Group's current Operating Margin % is -3.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Petards Group stock overvalued right now?
Based on GuruFocus' analysis, Petards Group (LSE:PEG) is currently considered Fairly Valued. The stock's GF Value™ is £0.10, compared to a current price of £0.10 — trading 5% below its estimated fair value. The current Operating Margin % is -3.53%. 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 Petards Group (LSE:PEG), the current Operating Margin % is -3.53% 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.
Petards Group PLC is a security and surveillance systems supplier. The company is engaged in the development, supply, and maintenance of technologies used in security, surveillance, communications, and ruggedized electronic applications. It operates across the Rail, Traffic, Defence, and Communications markets, providing onboard video and sensing systems, automatic number plate recognition and speed enforcement systems, defense-related electronic solutions, and critical communications services. The geographical segments of the company are the United Kingdom, Continental Europe, and the Rest of the World, of which the maximum revenue is generated from the United Kingdom.
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