Nexxen International (NAS:NEXN) 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.
Nexxen International Operating Margin % Related Terms
Nexxen International Operating Margin % Historical Data
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The historical data trend for Nexxen International'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.
NEXN vs ADV, NCMI, TC: Operating Margin % Comparison
For the Advertising Agencies subindustry, Nexxen International'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.
Nexxen International Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Nexxen International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nexxen International's Operating Margin % falls into.
Nexxen International 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.
Nexxen International'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.
Nexxen International (NEXN) has a Operating Margin % of -5.60% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nexxen International and its competitors. According to the industry distribution chart, Nexxen International ranks #365 out of 1023 companies in the Media - Diversified industry, placing it in the top 35.7%.
Is Nexxen International's Operating Margin % too high?
Nexxen International's current Operating Margin % is -5.60%. Based on the distribution chart, Nexxen International ranks #365 out of 1023 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, Nexxen International has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nexxen International's Operating Margin % compare to ADV and NCMI?
According to the Media - Diversified industry distribution chart, Nexxen International ranks #365 out of 1023 companies for Operating Margin %. This puts Nexxen International in the upper half of its industry. The industry median Operating Margin % is 2.51. 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 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 Nexxen International and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nexxen International's current Operating Margin % is -5.60%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nexxen International stock overvalued right now?
Based on GuruFocus' analysis, Nexxen International (NEXN) is currently considered Significantly Undervalued. The stock's GF Value™ is $12.15, compared to a current price of $8.45 — trading 30.5% below its estimated fair value. The current Operating Margin % is -5.60%. Nexxen International's overall GF Score™ is 89/100 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 Nexxen International (NEXN), the current Operating Margin % is -5.60% 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.
Is Nexxen International (NEXN) Overvalued in 2026?
Based on GuruFocus' analysis, Nexxen International stock appears to be undervalued.
The current stock price of $8.45 is trading 30.5% below its estimated GF Value™ of $12.15.
GuruFocus considers Nexxen International to be Significantly Undervalued.
Key valuation signals for NEXN:
Operating Margin %: -5.60%
GF Value™: $12.15 vs. price of $8.45 (30.5% below fair value)
No single metric tells the full story. See the NEXN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nexxen International Ltd is a globalized and flexible advertising technology platform with deep expertise in data and TV that helps empower advertisers, agencies, digital publishers, broadcasters, and others. The Digital Advertising Ecosystem of the company includes demand-side platform (DSP), supply-side platform (SSP), ad server, and data management platform (DMP) and also delivers a flexible and unified technology stack with and exclusive data at its core. The company operates in America, APAC, EMEA, and Rest of America, with majority revenue from United States.
89GF Score
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