Polar Capital HoldingsLSE:POLR -1.56%88 Operating Margin % is 23.07% as of Sep. 2025, which is 17% below its 10-year median of 27.69. GuruFocus rates LSE:POLR with a GF Score™ of 88/100 and a GF Value™ of £6.09 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 656 Asset Management companies, Polar Capital Holdings ranks better than 58.69% on this metric.
Polar Capital Holdings (LSE:POLR) 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.
Polar Capital Holdings Operating Margin % Related Terms
Polar Capital Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for Polar Capital Holdings'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:POLR vs BLK, BX, KKR: Operating Margin % Comparison
For the Asset Management subindustry, Polar Capital Holdings'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.
Polar Capital Holdings Operating Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Polar Capital Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Polar Capital Holdings's Operating Margin % falls into.
Polar Capital Holdings 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.
Polar Capital Holdings's Operating Margin % for the fiscal year that ended in Mar. 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.
Polar Capital Holdings (LSE:POLR) has a Operating Margin % of 23.07% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Polar Capital Holdings and its competitors. This is 17% below median its historical median of 27.69. Over the past decade, Polar Capital Holdings' Operating Margin % has ranged from 23.40 to 35.52. According to the industry distribution chart, Polar Capital Holdings ranks #271 out of 656 companies in the Asset Management industry, placing it in the top 41.3%.
Is Polar Capital Holdings' Operating Margin % too high?
Polar Capital Holdings' current Operating Margin % of 23.07% is 17% below median its 10-year median of 27.69. Over the past 10 years, this metric has ranged from a low of 23.40 to a high of 35.52. The Asset Management industry median Operating Margin % is 16.73. Polar Capital Holdings' value of 23.07% is 37.9% above this industry median. Based on the distribution chart, Polar Capital Holdings ranks #271 out of 656 companies in the Asset Management industry, which is above the industry midpoint. Overall, Polar Capital Holdings has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Polar Capital Holdings' Operating Margin % compare to BLK and BX?
According to the Asset Management industry distribution chart, Polar Capital Holdings ranks #271 out of 656 companies for Operating Margin %. This puts Polar Capital Holdings in the upper half of its industry. The industry median Operating Margin % is 16.73. Polar Capital Holdings' value of 23.07% is 37.9% above this benchmark. Historically, Polar Capital Holdings' own Operating Margin % has ranged from 23.40 to 35.52 over the past decade. While the company's 10-year median is 27.69 vs. the industry median of 16.73, Polar Capital Holdings 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 Asset Management company?
The median Operating Margin % among Asset Management companies is 16.73, based on 656 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. Polar Capital Holdings's current Operating Margin % of 23.07% is 37.9% 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 Polar Capital Holdings and its competitors. For the Asset Management industry, the median Operating Margin % is 16.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Polar Capital Holdings's current Operating Margin % is 23.07%, which is 17% below median its own 10-year median of 27.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Polar Capital Holdings stock overvalued right now?
Based on GuruFocus' analysis, Polar Capital Holdings (LSE:POLR) is currently considered Significantly Overvalued. The stock's GF Value™ is £6.09, compared to a current price of £8.23 — trading 35.1% above its estimated fair value. The current Operating Margin % is 23.07%, which is 17% below median its 10-year median of 27.69 and 37.9% above the Asset Management industry median of 16.73. Polar Capital Holdings' overall GF Score™ is 88/100 with 8 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 Polar Capital Holdings (LSE:POLR), the current Operating Margin % is 23.07% as of Sep. 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 Polar Capital Holdings (LSE:POLR) Overvalued in 2026?
Based on GuruFocus' analysis, Polar Capital Holdings stock appears to be overvalued.
The current stock price of £8.23 is trading 35.1% above its estimated GF Value™ of £6.09.
GuruFocus considers Polar Capital Holdings to be Significantly Overvalued.
Key valuation signals for LSE:POLR:
Operating Margin %: 23.07% (17% below median its 10-year median of 27.69)
GF Value™: £6.09 vs. price of £8.23 (35.1% above fair value)
Industry Position: 37.9% above the Asset Management median (#271 of 656)
No single metric tells the full story. See the LSE:POLR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Polar Capital Holdings PLC is a specialist investment management company. It offers professional and institutional investors a range of geographical and sector funds. The company has long-only and absolute return funds in its product range. The company offers fundamental funds that are diversified by asset class, geography, sector, and structure. The company has one operating segment, which is investment management. It operates in the United Kingdom, Ireland, Cayman Islands, Rest of Europe, United States of America, and Rest of the world. The group's revenue-generating operations are in London and Zurich.
88GF Score
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