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Velocity CompositesLSE:VEL 34 Operating Margin % is -8.97% as of Apr. 2026. GuruFocus rates LSE:VEL with a GF Score™ of 34/100 and a GF Value™ of £0.23 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 350 Aerospace & Defense companies, Velocity Composites ranks worse than 76% on this metric.
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.
Velocity Composites Operating Margin % Related Terms
Velocity Composites Operating Margin % Historical Data
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The historical data trend for Velocity Composites'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:VEL vs SPCX, GE, RTX: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Velocity Composites'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.
Velocity Composites Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Velocity Composites's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Velocity Composites'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.
Velocity Composites's Operating Margin % for the fiscal year that ended in Oct. 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.
Velocity Composites (LSE:VEL) has a Operating Margin % of -8.97% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Velocity Composites and its competitors. According to the industry distribution chart, Velocity Composites ranks #266 out of 350 companies in the Aerospace & Defense industry, placing it in the top 76%.
Is Velocity Composites' Operating Margin % too high?
Velocity Composites' current Operating Margin % is -8.97%. Based on the distribution chart, Velocity Composites ranks #266 out of 350 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. Overall, Velocity Composites has a GF Score™ of 34/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Velocity Composites' Operating Margin % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Velocity Composites ranks #266 out of 350 companies for Operating Margin %. This places Velocity Composites in the lower half of its industry. The industry median Operating Margin % is 7.58. 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 Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.58, based on 350 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 Velocity Composites and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Velocity Composites's current Operating Margin % is -8.97%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Velocity Composites stock overvalued right now?
Based on GuruFocus' analysis, Velocity Composites (LSE:VEL) is currently considered Significantly Undervalued. The stock's GF Value™ is £0.23, compared to a current price of £0.14 — trading 39.1% below its estimated fair value. The current Operating Margin % is -8.97%. Velocity Composites' overall GF Score™ is 34/100 with 3 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 Velocity Composites (LSE:VEL), the current Operating Margin % is -8.97% as of Apr. 2026. 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 Velocity Composites (LSE:VEL) Overvalued in 2026?
Based on GuruFocus' analysis, Velocity Composites stock appears to be undervalued.
The current stock price of £0.14 is trading 39.1% below its estimated GF Value™ of £0.23.
GuruFocus considers Velocity Composites to be Significantly Undervalued.
Key valuation signals for LSE:VEL:
Operating Margin %: -8.97%
GF Value™: £0.23 vs. price of £0.14 (39.1% below fair value)
No single metric tells the full story. See the LSE:VEL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Velocity Composites PLC is a provider of engineered composite and process material kits to the aerospace industry. The company's offerings include Engineered Vacuum Bag Material Kits, Structural Material Kits and other Support Services. The majority of revenue is derived from the sale of goods. Geographically, it generates the maximum revenue from the United Kingdom, and the rest from Europe, the USA and the rest of the World.
34GF Score
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