Radius Residential CareNZSE:RAD 40 Operating Margin % is 12.10% as of Mar. 2026, which is 34% above its 10-year median of 9.04. GuruFocus rates NZSE:RAD with a GF Score™ of 40/100 and a GF Value™ of NZ$0.29 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 668 Healthcare Providers & Services companies, Radius Residential Care ranks better than 74.55% on this metric.
Radius Residential Care Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Radius Residential Care's Operating Margin % or its related term are showing as below:
NZSE:RAD'
s Operating Margin % Range Over the Past 10 Years
Min: 6.01 Med: 9.04 Max: 20.05
Current: 11.86
NZSE:RAD's Operating Margin % is ranked better than 74.55% of 668
companies
in the Healthcare Providers & Services industry
Industry Median: 4.845
vs NZSE:RAD: 11.86
Radius Residential Care's 5-Year Average Operating Margin % Growth Rate was 16.80% per year.
Radius Residential Care (NZSE:RAD) 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.
Radius Residential Care Operating Margin % Related Terms
Radius Residential Care Operating Margin % Historical Data
* Premium members only.
The historical data trend for Radius Residential Care'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.
NZSE:RAD vs HCA, THC, DVA: Operating Margin % Comparison
For the Medical Care Facilities subindustry, Radius Residential Care'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.
Radius Residential Care Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Radius Residential Care's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Radius Residential Care's Operating Margin % falls into.
Radius Residential Care 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.
Radius Residential Care'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.
Radius Residential Care (NZSE:RAD) has a Operating Margin % of 12.10% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Radius Residential Care and its competitors. This is 34% above median its historical median of 9.04. Over the past decade, Radius Residential Care's Operating Margin % has ranged from 6.01 to 20.05. According to the industry distribution chart, Radius Residential Care ranks #170 out of 668 companies in the Healthcare Providers & Services industry, placing it in the top 25.4%.
Is Radius Residential Care's Operating Margin % too high?
Radius Residential Care's current Operating Margin % of 12.10% is 34% above median its 10-year median of 9.04. Over the past 10 years, this metric has ranged from a low of 6.01 to a high of 20.05. The Healthcare Providers & Services industry median Operating Margin % is 4.85. Radius Residential Care's value of 12.10% is 149.7% above this industry median. Based on the distribution chart, Radius Residential Care ranks #170 out of 668 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, Radius Residential Care has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Radius Residential Care's Operating Margin % compare to HCA and THC?
According to the Healthcare Providers & Services industry distribution chart, Radius Residential Care ranks #170 out of 668 companies for Operating Margin %. This puts Radius Residential Care in the upper half of its industry. The industry median Operating Margin % is 4.85. Radius Residential Care's value of 12.10% is 149.7% above this benchmark. Historically, Radius Residential Care's own Operating Margin % has ranged from 6.01 to 20.05 over the past decade. While the company's 10-year median is 9.04 vs. the industry median of 4.85, Radius Residential Care 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 Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 4.85, based on 668 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. Radius Residential Care's current Operating Margin % of 12.10% is 149.7% 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 Radius Residential Care and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Radius Residential Care's current Operating Margin % is 12.10%, which is 34% above median its own 10-year median of 9.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Radius Residential Care stock overvalued right now?
Based on GuruFocus' analysis, Radius Residential Care (NZSE:RAD) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$0.29, compared to a current price of NZ$0.39 — trading 32.8% above its estimated fair value. The current Operating Margin % is 12.10%, which is 34% above median its 10-year median of 9.04 and 149.7% above the Healthcare Providers & Services industry median of 4.85. Radius Residential Care's overall GF Score™ is 40/100 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 Radius Residential Care (NZSE:RAD), the current Operating Margin % is 12.10% 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 Radius Residential Care (NZSE:RAD) Overvalued in 2026?
Based on GuruFocus' analysis, Radius Residential Care stock appears to be overvalued.
The current stock price of NZ$0.39 is trading 32.8% above its estimated GF Value™ of NZ$0.29.
GuruFocus considers Radius Residential Care to be Significantly Overvalued.
Key valuation signals for NZSE:RAD:
Operating Margin %: 12.10% (34% above median its 10-year median of 9.04)
GF Value™: NZ$0.29 vs. price of NZ$0.39 (32.8% above fair value)
Industry Position: 149.7% above the Healthcare Providers & Services median (#170 of 668)
No single metric tells the full story. See the NZSE:RAD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Radius Residential Care Ltd is a health and aged care provider for elderly and disabled people. The company provides residential care, hospital care, dementia care, respite care, and palliative care. Additionally, the company offers Young Disabled Care services for those under 65 who require assistance with self-care, mobility, and/or communication. It has one operating segment, being the provision of aged care in New Zealand.
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