Rank Group (The)LSE:RNK -1.42%77 Operating Margin % is 9.60% as of Dec. 2025, which is 12% above its 10-year median of 8.60. GuruFocus rates LSE:RNK with a GF Score™ of 77/100 and a GF Value™ of £1.01 (Fairly Valued). The stock has 2 warning signs investors should review. Among 844 Travel & Leisure companies, Rank Group (The) ranks better than 52.61% on this metric.
Rank Group (The) (LSE:RNK) 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.
Rank Group (The) Operating Margin % Related Terms
Rank Group (The) Operating Margin % Historical Data
* Premium members only.
The historical data trend for Rank Group (The)'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:RNK vs FLUT, DKNG, LNWO: Operating Margin % Comparison
For the Gambling subindustry, Rank Group (The)'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.
Rank Group (The) Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Rank Group (The)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rank Group (The)'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.
Rank Group (The)'s Operating Margin % for the fiscal year that ended in Jun. 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.
Rank Group (The) (LSE:RNK) has a Operating Margin % of 9.60% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Rank Group (The) and its competitors. This is 12% above median its historical median of 8.60. According to the industry distribution chart, Rank Group (The) ranks #400 out of 844 companies in the Travel & Leisure industry, placing it in the top 47.4%.
Is Rank Group (The)'s Operating Margin % too high?
Rank Group (The)'s current Operating Margin % of 9.60% is 12% above median its 10-year median of 8.60. The Travel & Leisure industry median Operating Margin % is 8.14. Rank Group (The)'s value of 9.60% is 18% above this industry median. Based on the distribution chart, Rank Group (The) ranks #400 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Rank Group (The) has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Rank Group (The)'s Operating Margin % compare to FLUT and DKNG?
According to the Travel & Leisure industry distribution chart, Rank Group (The) ranks #400 out of 844 companies for Operating Margin %. This puts Rank Group (The) in the upper half of its industry. The industry median Operating Margin % is 8.14. Rank Group (The)'s value of 9.60% is 18% above this benchmark. While the company's 10-year median is 8.60 vs. the industry median of 8.14, Rank Group (The) 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 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. Rank Group (The)'s current Operating Margin % of 9.60% is 18% 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 Rank Group (The) 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. Rank Group (The)'s current Operating Margin % is 9.60%, which is 12% above median its own 10-year median of 8.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rank Group (The) stock overvalued right now?
Based on GuruFocus' analysis, Rank Group (The) (LSE:RNK) is currently considered Fairly Valued. The stock's GF Value™ is £1.01, compared to a current price of £0.98 — trading 3.5% below its estimated fair value. The current Operating Margin % is 9.60%, which is 12% above median its 10-year median of 8.60 and 18% above the Travel & Leisure industry median of 8.14. Rank Group (The)'s overall GF Score™ is 77/100 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 Rank Group (The) (LSE:RNK), the current Operating Margin % is 9.60% 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.
Is Rank Group (The) (LSE:RNK) Overvalued in 2026?
Based on GuruFocus' analysis, Rank Group (The) stock appears to be undervalued.
The current stock price of £0.98 is trading 3.5% below its estimated GF Value™ of £1.01.
GuruFocus considers Rank Group (The) to be Fairly Valued.
Key valuation signals for LSE:RNK:
Operating Margin %: 9.60% (12% above median its 10-year median of 8.60)
GF Value™: £1.01 vs. price of £0.98 (3.5% below fair value)
Industry Position: 18% above the Travel & Leisure median (#400 of 844)
No single metric tells the full story. See the LSE:RNK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rank Group (The) PLC is a gambling company with five primary business segments: Grosvenor Venues, Mecca Venues, Digital, Enracha Venues, and Corporate Costs. Its highest revenue producer is Grosvenor Casinos, a multichannel casino operator in the United Kingdom, which operates a variety of casino and slot machine games. Mecca offers bingo, gaming machines, great value food and drink, and live entertainment. Enracha is Rank's community gaming business for the Spanish market. Rank's digital business segment includes Mecca and Grosvenor for the UK market and Yo for the Spanish market, and also operates over 80 UK digital-only brands via its proprietary technology platform and third-party platforms. Geographically, the company generates the majority of its revenue in the United Kingdom.
77GF Score
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