East African BreweriesNAI:EABL +1.31%87 Operating Margin % is 24.57% as of Dec. 2025, which is 6% above its 10-year median of 23.23. GuruFocus rates NAI:EABL with a GF Score™ of 87/100 and a GF Value™ of KES317.56 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 210 Beverages - Alcoholic companies, East African Breweries ranks better than 88.1% on this metric.
East African Breweries PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for East African Breweries's Operating Margin % or its related term are showing as below:
NAI:EABL'
s Operating Margin % Range Over the Past 10 Years
Min: 19.65 Med: 23.23 Max: 27.73
Current: 21.88
NAI:EABL's Operating Margin % is ranked better than 88.1% of 210
companies
in the Beverages - Alcoholic industry
Industry Median: 7.915
vs NAI:EABL: 21.88
East African Breweries's 5-Year Average Operating Margin % Growth Rate was 0.10% per year.
East African Breweries (NAI:EABL) 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.
East African Breweries Operating Margin % Related Terms
East African Breweries Operating Margin % Historical Data
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The historical data trend for East African Breweries'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.
NAI:EABL vs STZ, TAP: Operating Margin % Comparison
For the Beverages - Brewers subindustry, East African Breweries'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.
East African Breweries Operating Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, East African Breweries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where East African Breweries's Operating Margin % falls into.
East African Breweries 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.
East African Breweries's Operating Margin % for the fiscal year that ended in Jun. 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.
East African Breweries (NAI:EABL) has a Operating Margin % of 24.57% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on East African Breweries and its competitors. This is near median its historical median of 23.23. Over the past decade, East African Breweries' Operating Margin % has ranged from 19.65 to 27.73. According to the industry distribution chart, East African Breweries ranks #25 out of 210 companies in the Beverages - Alcoholic industry, placing it in the top 11.9%.
Is East African Breweries' Operating Margin % too high?
East African Breweries' current Operating Margin % of 24.57% is near median its 10-year median of 23.23. Over the past 10 years, this metric has ranged from a low of 19.65 to a high of 27.73. The Beverages - Alcoholic industry median Operating Margin % is 7.92. East African Breweries' value of 24.57% is 210.4% above this industry median. Based on the distribution chart, East African Breweries ranks #25 out of 210 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, East African Breweries has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does East African Breweries' Operating Margin % compare to STZ and TAP?
According to the Beverages - Alcoholic industry distribution chart, East African Breweries ranks #25 out of 210 companies for Operating Margin %. This places East African Breweries in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.92. East African Breweries' value of 24.57% is 210.4% above this benchmark. Historically, East African Breweries' own Operating Margin % has ranged from 19.65 to 27.73 over the past decade. While the company's 10-year median is 23.23 vs. the industry median of 7.92, East African Breweries 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 Beverages - Alcoholic company?
The median Operating Margin % among Beverages - Alcoholic companies is 7.92, based on 210 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. East African Breweries's current Operating Margin % of 24.57% is 210.4% 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 East African Breweries and its competitors. For the Beverages - Alcoholic industry, the median Operating Margin % is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. East African Breweries's current Operating Margin % is 24.57%, which is near median its own 10-year median of 23.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is East African Breweries stock overvalued right now?
Based on GuruFocus' analysis, East African Breweries (NAI:EABL) is currently considered Modestly Undervalued. The stock's GF Value™ is KES317.56, compared to a current price of KES270.50 — trading 14.8% below its estimated fair value. The current Operating Margin % is 24.57%, which is near median its 10-year median of 23.23 and 210.4% above the Beverages - Alcoholic industry median of 7.92. East African Breweries' overall GF Score™ is 87/100 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 East African Breweries (NAI:EABL), the current Operating Margin % is 24.57% 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 East African Breweries (NAI:EABL) Overvalued in 2026?
Based on GuruFocus' analysis, East African Breweries stock appears to be undervalued.
The current stock price of KES270.50 is trading 14.8% below its estimated GF Value™ of KES317.56.
GuruFocus considers East African Breweries to be Modestly Undervalued.
Key valuation signals for NAI:EABL:
Operating Margin %: 24.57% (near median its 10-year median of 23.23)
GF Value™: KES317.56 vs. price of KES270.50 (14.8% below fair value)
Industry Position: 210.4% above the Beverages - Alcoholic median (#25 of 210)
No single metric tells the full story. See the NAI:EABL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
East African Breweries PLC is a branded alcohol beverage company. The firm and its subsidiaries are involved in the marketing, production, and distribution of a collection of brands that range from beer, spirits, and adult non-alcoholic drinks. The company has invested in breweries, distilleries, support industries, and a distribution network across the region. The firm derives its revenue mainly from brewing, marketing, and selling of drinks, malt, and barley. Its geographical segments include Kenya, Uganda, and Tanzania, of which the majority of the revenue is generated from Kenya.
87GF Score
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