Stelrad GroupLSE:SRAD 69 Operating Margin % is 10.94% as of Dec. 2025, which is 25% above its 10-year median of 8.77. GuruFocus rates LSE:SRAD with a GF Score™ of 69/100 and a GF Value™ of £1.29 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,767 Construction companies, Stelrad Group ranks better than 73.01% on this metric.
Stelrad Group (LSE:SRAD) 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.
Stelrad Group Operating Margin % Related Terms
Stelrad Group Operating Margin % Historical Data
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The historical data trend for Stelrad 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:SRAD vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Stelrad 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.
Stelrad Group Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Stelrad Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Stelrad 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.
Stelrad 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.
Stelrad Group (LSE:SRAD) has a Operating Margin % of 10.94% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Stelrad Group and its competitors. This is 25% above median its historical median of 8.77. Over the past decade, Stelrad Group's Operating Margin % has ranged from 4.55 to 12.10. According to the industry distribution chart, Stelrad Group ranks #477 out of 1767 companies in the Construction industry, placing it in the top 27%.
Is Stelrad Group's Operating Margin % too high?
Stelrad Group's current Operating Margin % of 10.94% is 25% above median its 10-year median of 8.77. Over the past 10 years, this metric has ranged from a low of 4.55 to a high of 12.10. The Construction industry median Operating Margin % is 5.89. Stelrad Group's value of 10.94% is 85.7% above this industry median. Based on the distribution chart, Stelrad Group ranks #477 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Stelrad Group has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Stelrad Group's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Stelrad Group ranks #477 out of 1767 companies for Operating Margin %. This puts Stelrad Group in the upper half of its industry. The industry median Operating Margin % is 5.89. Stelrad Group's value of 10.94% is 85.7% above this benchmark. Historically, Stelrad Group's own Operating Margin % has ranged from 4.55 to 12.10 over the past decade. While the company's 10-year median is 8.77 vs. the industry median of 5.89, Stelrad 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Stelrad Group's current Operating Margin % of 10.94% is 85.7% 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 Stelrad Group and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Stelrad Group's current Operating Margin % is 10.94%, which is 25% above median its own 10-year median of 8.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stelrad Group stock overvalued right now?
Based on GuruFocus' analysis, Stelrad Group (LSE:SRAD) is currently considered Modestly Overvalued. The stock's GF Value™ is £1.29, compared to a current price of £1.53 — trading 18.6% above its estimated fair value. The current Operating Margin % is 10.94%, which is 25% above median its 10-year median of 8.77 and 85.7% above the Construction industry median of 5.89. Stelrad Group's overall GF Score™ is 69/100 with 5 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 Stelrad Group (LSE:SRAD), the current Operating Margin % is 10.94% 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 Stelrad Group (LSE:SRAD) Overvalued in 2026?
Based on GuruFocus' analysis, Stelrad Group stock appears to be overvalued.
The current stock price of £1.53 is trading 18.6% above its estimated GF Value™ of £1.29.
GuruFocus considers Stelrad Group to be Modestly Overvalued.
Key valuation signals for LSE:SRAD:
Operating Margin %: 10.94% (25% above median its 10-year median of 8.77)
GF Value™: £1.29 vs. price of £1.53 (18.6% above fair value)
Industry Position: 85.7% above the Construction median (#477 of 1767)
No single metric tells the full story. See the LSE:SRAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stelrad Group PLC sells standard and premium steel panel radiators, low surface temperature radiators, towel warmers, decorative steel tubular radiators, and other steel column radiators. It has manufacturing and distribution facilities in the United Kingdom, the Netherlands, and Turkey, additional distribution facilities in Poland and Denmark, and sales personnel in seven other countries, including China. Geographically, the company has three segments: UK & Ireland, Europe, and Turkey & International. The Group operates five established brands (Stelrad, Henrad, Termo Teknik, Hudevad, and DL Radiators) that enable its products to be tailored to specific channels, maximizing market access and minimizing potential conflict.
69GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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