Spark New ZealandNZSE:SPK +3.66%71 Operating Margin % is 7.61% as of Dec. 2025, which is 51% below its 10-year median of 15.52. GuruFocus rates NZSE:SPK with a GF Score™ of 71/100 and a GF Value™ of NZ$3.43 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 367 Telecommunication Services companies, Spark New Zealand ranks better than 53.68% on this metric.
Spark New Zealand Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.4%.
The historical rank and industry rank for Spark New Zealand's Operating Margin % or its related term are showing as below:
NZSE:SPK'
s Operating Margin % Range Over the Past 10 Years
Min: 9.96 Med: 15.52 Max: 17.5
Current: 11.36
NZSE:SPK's Operating Margin % is ranked better than 53.68% of 367
companies
in the Telecommunication Services industry
Industry Median: 9.73
vs NZSE:SPK: 11.36
Spark New Zealand's 5-Year Average Operating Margin % Growth Rate was -8.40% per year.
Spark New Zealand (NZSE:SPK) 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.
Spark New Zealand Operating Margin % Related Terms
Spark New Zealand Operating Margin % Historical Data
* Premium members only.
The historical data trend for Spark New Zealand'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:SPK vs TMUS, VZ, T: Operating Margin % Comparison
For the Telecom Services subindustry, Spark New Zealand'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.
Spark New Zealand Operating Margin % vs Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, Spark New Zealand's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Spark New Zealand'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.
Spark New Zealand'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.
Spark New Zealand (NZSE:SPK) has a Operating Margin % of 7.61% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Spark New Zealand and its competitors. This is 51% below median its historical median of 15.52. Over the past decade, Spark New Zealand's Operating Margin % has ranged from 9.96 to 17.50. According to the industry distribution chart, Spark New Zealand ranks #170 out of 367 companies in the Telecommunication Services industry, placing it in the top 46.3%.
Is Spark New Zealand's Operating Margin % too high?
Spark New Zealand's current Operating Margin % of 7.61% is 51% below median its 10-year median of 15.52. Over the past 10 years, this metric has ranged from a low of 9.96 to a high of 17.50. The Telecommunication Services industry median Operating Margin % is 9.73. Spark New Zealand's value of 7.61% is 21.8% below this industry median. Based on the distribution chart, Spark New Zealand ranks #170 out of 367 companies in the Telecommunication Services industry, which is above the industry midpoint. Overall, Spark New Zealand has a GF Score™ of 71/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Spark New Zealand's Operating Margin % compare to TMUS and VZ?
According to the Telecommunication Services industry distribution chart, Spark New Zealand ranks #170 out of 367 companies for Operating Margin %. This puts Spark New Zealand in the upper half of its industry. The industry median Operating Margin % is 9.73. Spark New Zealand's value of 7.61% is 21.8% below this benchmark. Historically, Spark New Zealand's own Operating Margin % has ranged from 9.96 to 17.50 over the past decade. While the company's 10-year median is 15.52 vs. the industry median of 9.73, Spark New Zealand 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. Spark New Zealand's current Operating Margin % of 7.61% is 21.8% 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 Spark New Zealand 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. Spark New Zealand's current Operating Margin % is 7.61%, which is 51% below median its own 10-year median of 15.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Spark New Zealand stock overvalued right now?
Based on GuruFocus' analysis, Spark New Zealand (NZSE:SPK) is currently considered Significantly Undervalued. The stock's GF Value™ is NZ$3.43, compared to a current price of NZ$1.84 — trading 46.4% below its estimated fair value. The current Operating Margin % is 7.61%, which is 51% below median its 10-year median of 15.52 and 21.8% below the Telecommunication Services industry median of 9.73. Spark New Zealand's overall GF Score™ is 71/100 with 8 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 Spark New Zealand (NZSE:SPK), the current Operating Margin % is 7.61% 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 Spark New Zealand (NZSE:SPK) Overvalued in 2026?
Based on GuruFocus' analysis, Spark New Zealand stock appears to be undervalued.
The current stock price of NZ$1.84 is trading 46.4% below its estimated GF Value™ of NZ$3.43.
GuruFocus considers Spark New Zealand to be Significantly Undervalued.
Key valuation signals for NZSE:SPK:
Operating Margin %: 7.61% (51% below median its 10-year median of 15.52)
GF Value™: NZ$3.43 vs. price of NZ$1.84 (46.4% below fair value)
Industry Position: 21.8% below the Telecommunication Services median (#170 of 367)
No single metric tells the full story. See the NZSE:SPK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Spark is one of only three integrated telecommunications companies in New Zealand. It is the leading mobile network operator with low- to mid-40% subscriber and revenue share, and the dominant provider of fixed-line broadband services with a mid-30% subscriber share. It has a big position in the New Zealand corporate and wholesale telecommunications services provision space. Spark supplements its core telecommunications operations and related infrastructure with IT products and services across cloud, managed data and networks, procurement, data centers, and Internet of Things. Its operations are all based in New Zealand, except for its 41% interest in Southern Cross Submarine Cables, which has zero book value and to which Spark has no funding obligations.
71GF Score
Get the complete analysis for NZSE:SPK
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NZSE:SPK has been successfully added to your 
