Zegona CommunicationsLSE:ZEG +2.82%36 Operating Margin % is 2.06% as of Mar. 2026, which is 63% below its 10-year median of 5.60. GuruFocus rates LSE:ZEG with a GF Score™ of 36/100. The stock has 5 warning signs investors should review. Among 367 Telecommunication Services companies, Zegona Communications ranks worse than 63.22% on this metric.
The historical rank and industry rank for Zegona Communications's Operating Margin % or its related term are showing as below:
LSE:ZEG'
s Operating Margin % Range Over the Past 10 Years
Min: 5.6 Med: 5.6 Max: 5.61
Current: 5.61
LSE:ZEG's Operating Margin % is ranked worse than 63.22% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs LSE:ZEG: 5.61
Zegona Communications's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
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.
Zegona Communications Operating Margin % Related Terms
Zegona Communications Operating Margin % Historical Data
* Premium members only.
The historical data trend for Zegona Communications'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:ZEG vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Zegona Communications'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.
Zegona Communications Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Zegona Communications's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zegona Communications'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.
Zegona Communications's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Zegona Communications (LSE:ZEG) has a Operating Margin % of 2.06% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Zegona Communications and its competitors. This is 63% below median its historical median of 5.60. Over the past decade, Zegona Communications' Operating Margin % has ranged from 5.60 to 5.61. According to the industry distribution chart, Zegona Communications ranks #232 out of 367 companies in the Telecommunication Services industry, placing it in the top 63.2%.
Is Zegona Communications' Operating Margin % too high?
Zegona Communications' current Operating Margin % of 2.06% is 63% below median its 10-year median of 5.60. Over the past 10 years, this metric has ranged from a low of 5.60 to a high of 5.61. The Telecommunication Services industry median Operating Margin % is 9.73. Zegona Communications' value of 2.06% is 78.8% below this industry median. Based on the distribution chart, Zegona Communications ranks #232 out of 367 companies in the Telecommunication Services industry, which is below the industry midpoint. Overall, Zegona Communications has a GF Score™ of 36/100, reflecting its overall financial health beyond just this single metric.
How does Zegona Communications' Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Zegona Communications ranks #232 out of 367 companies for Operating Margin %. This places Zegona Communications in the lower half of its industry. The industry median Operating Margin % is 9.73. Zegona Communications' value of 2.06% is 78.8% below this benchmark. Historically, Zegona Communications' own Operating Margin % has ranged from 5.60 to 5.61 over the past decade. While the company's 10-year median is 5.60 vs. the industry median of 9.73, Zegona Communications has consistently been below 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 Telecommunication Services company?
The median Operating Margin % among Telecommunication Services companies is 9.73, based on 367 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. Zegona Communications's current Operating Margin % of 2.06% is 78.8% below 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 Zegona Communications and its competitors. For the Telecommunication Services industry, the median Operating Margin % is 9.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zegona Communications's current Operating Margin % is 2.06%, which is 63% below median its own 10-year median of 5.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zegona Communications stock overvalued right now?
Zegona Communications (LSE:ZEG) has a current Operating Margin % of 2.06%. The current Operating Margin % is 2.06%, which is 63% below median its 10-year median of 5.60 and 78.8% below the Telecommunication Services industry median of 9.73. Zegona Communications' overall GF Score™ is 36/100 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 Zegona Communications (LSE:ZEG), the current Operating Margin % is 2.06% as of Mar. 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.
Zegona Communications PLC is an integrated telecommunications provider of broadband, mobile and TV services and products in Spain, delivering voice, data and other value-added services. The Group serves both business-to-consumer and business-to-business markets with a diversified customer base. The Company's objective is to invest in businesses in the European Telecommunications, Media and Technology sector and improve their performance to deliver attractive shareholder returns.
36GF Score
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