Science GroupLSE:SAG 83 Operating Margin % is 16.24% as of Dec. 2025, which is 26% above its 10-year median of 12.86. GuruFocus rates LSE:SAG with a GF Score™ of 83/100 and a GF Value™ of £4.62 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,070 Business Services companies, Science Group ranks better than 78.97% on this metric.
Science Group (LSE:SAG) 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.
Science Group Operating Margin % Related Terms
Science Group Operating Margin % Historical Data
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The historical data trend for Science 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:SAG vs VRSK, EFX, BAH: Operating Margin % Comparison
For the Consulting Services subindustry, Science 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.
Science Group Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Science Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Science 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.
Science 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.
Science Group (LSE:SAG) has a Operating Margin % of 16.24% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Science Group and its competitors. This is 26% above median its historical median of 12.86. According to the industry distribution chart, Science Group ranks #225 out of 1070 companies in the Business Services industry, placing it in the top 21%.
Is Science Group's Operating Margin % too high?
Science Group's current Operating Margin % of 16.24% is 26% above median its 10-year median of 12.86. The Business Services industry median Operating Margin % is 6.33. Science Group's value of 16.24% is 156.6% above this industry median. Based on the distribution chart, Science Group ranks #225 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Science Group has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Science Group's Operating Margin % compare to VRSK and EFX?
According to the Business Services industry distribution chart, Science Group ranks #225 out of 1070 companies for Operating Margin %. This places Science Group in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.33. Science Group's value of 16.24% is 156.6% above this benchmark. While the company's 10-year median is 12.86 vs. the industry median of 6.33, Science Group 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 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. Science Group's current Operating Margin % of 16.24% is 156.6% 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 Science 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. Science Group's current Operating Margin % is 16.24%, which is 26% above median its own 10-year median of 12.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Science Group stock overvalued right now?
Based on GuruFocus' analysis, Science Group (LSE:SAG) is currently considered Modestly Overvalued. The stock's GF Value™ is £4.62, compared to a current price of £5.85 — trading 26.6% above its estimated fair value. The current Operating Margin % is 16.24%, which is 26% above median its 10-year median of 12.86 and 156.6% above the Business Services industry median of 6.33. Science Group's overall GF Score™ is 83/100 with 4 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 Science Group (LSE:SAG), the current Operating Margin % is 16.24% 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 Science Group (LSE:SAG) Overvalued in 2026?
Based on GuruFocus' analysis, Science Group stock appears to be overvalued.
The current stock price of £5.85 is trading 26.6% above its estimated GF Value™ of £4.62.
GuruFocus considers Science Group to be Modestly Overvalued.
Key valuation signals for LSE:SAG:
Operating Margin %: 16.24% (26% above median its 10-year median of 12.86)
GF Value™: £4.62 vs. price of £5.85 (26.6% above fair value)
Industry Position: 156.6% above the Business Services median (#225 of 1070)
No single metric tells the full story. See the LSE:SAG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Science Group PLC provides outsourced science and technology-based consultancy, advisory, and product development services to a wide range of industries and markets. It operates in the Services segment, which comprises five consultancy Practises under the Sagentia brand: Medical, Innovation Regulatory, Defence, and Aviation. The Systems segments comprise two businesses: Critical Maritime Systems & Support (CMS2), which designs, manufactures and supports submarine atmosphere systems for the defence sector; and Frontier Smart Technologies Limited (Frontier), which designs and supplies radio and audio semi-conductors/modules. Its geographical segments are the UK, Other European Countries, North America, Asia, and Other, of which the majority of its revenue comes from the United Kingdom.
83GF Score
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