New Oriental Education & Technology Group (LTS:0K75) 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.
New Oriental Education & Technology Group Operating Margin % Related Terms
New Oriental Education & Technology Group Operating Margin % Historical Data
* 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.
New Oriental Education & Technology Group Operating Margin % Chart
New Oriental Education & Technology Group Annual Data
LTS:0K75 vs TAL, GHC, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, New Oriental Education & Technology 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.
New Oriental Education & Technology Group Operating Margin % vs Education Industry
New Oriental Education & Technology Group Operating Margin % Calculation
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.
* 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.
New Oriental Education & Technology Group (LTS:0K75) has a Operating Margin % of 12.72% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on New Oriental Education & Technology Group and its competitors. This is 28% above median its historical median of 9.95. According to the industry distribution chart, New Oriental Education & Technology Group ranks #121 out of 258 companies in the Education industry, placing it in the top 46.9%.
Is New Oriental Education & Technology Group's Operating Margin % too high?
New Oriental Education & Technology Group's current Operating Margin % of 12.72% is 28% above median its 10-year median of 9.95. The Education industry median Operating Margin % is 9.35. New Oriental Education & Technology Group's value of 12.72% is 36.1% above this industry median. Based on the distribution chart, New Oriental Education & Technology Group ranks #121 out of 258 companies in the Education industry, which is above the industry midpoint. Overall, New Oriental Education & Technology Group has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does New Oriental Education & Technology Group's Operating Margin % compare to TAL and GHC?
According to the Education industry distribution chart, New Oriental Education & Technology Group ranks #121 out of 258 companies for Operating Margin %. This puts New Oriental Education & Technology Group in the upper half of its industry. The industry median Operating Margin % is 9.35. New Oriental Education & Technology Group's value of 12.72% is 36.1% above this benchmark. While the company's 10-year median is 9.95 vs. the industry median of 9.35, New Oriental Education & Technology 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 an Education company?
The median Operating Margin % among Education companies is 9.35, based on 258 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. New Oriental Education & Technology Group's current Operating Margin % of 12.72% is 36.1% 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 New Oriental Education & Technology Group and its competitors. For the Education industry, the median Operating Margin % is 9.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New Oriental Education & Technology Group's current Operating Margin % is 12.72%, which is 28% above median its own 10-year median of 9.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Oriental Education & Technology Group stock overvalued right now?
Based on GuruFocus' analysis, New Oriental Education & Technology Group (LTS:0K75) is currently considered Significantly Undervalued. The stock's GF Value™ is $81.36, compared to a current price of $45.15 — trading 44.5% below its estimated fair value. The current Operating Margin % is 12.72%, which is 28% above median its 10-year median of 9.95 and 36.1% above the Education industry median of 9.35. New Oriental Education & Technology Group's overall GF Score™ is 77/100 with 1 warning sign 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 New Oriental Education & Technology Group (LTS:0K75), the current Operating Margin % is 12.72% as of Feb. 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 New Oriental Education & Technology Group (LTS:0K75) Overvalued in 2026?
Based on GuruFocus' analysis, New Oriental Education & Technology Group stock appears to be undervalued.
The current stock price of $45.15 is trading 44.5% below its estimated GF Value™ of $81.36.
GuruFocus considers New Oriental Education & Technology Group to be Significantly Undervalued.
Key valuation signals for LTS:0K75:
Operating Margin %: 12.72% (28% above median its 10-year median of 9.95)
GF Value™: $81.36 vs. price of $45.15 (44.5% below fair value)
Industry Position: 36.1% above the Education median (#121 of 258)
No single metric tells the full story. See the LTS:0K75 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New Oriental Education & Technology Group Business Description
New Oriental Education & Technology is a prominent private education provider in China, offering a wide array of educational services. These include overseas test preparation and consulting services, high school academic tutoring, nonacademic tutoring, and intelligent learning systems and devices. Additionally, the company holds a 57% ownership stake in East Buy, a leading player in the livestreaming e-commerce market.
77GF Score
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