Vital (NZSE:VTL) Operating Margin %: 44.13% (As of Jun. 2025) — 358% Above Median


What is Vital Operating Margin %?

Vital NZSE:VTL Operating Margin % is 44.13% as of Jun. 2025, which is 358% above its 10-year median of 9.64. The stock has 7 warning signs investors should review.

Operating Margin % is calculated as Operating Income divided by its Revenue. Vital's Operating Income for the six months ended in Jun. 2025 was NZ$6.03 Mil. Vital's Revenue for the six months ended in Jun. 2025 was NZ$13.66 Mil. Therefore, Vital's Operating Margin % for the quarter that ended in Jun. 2025 was 44.13%.

The historical rank and industry rank for Vital's Operating Margin % or its related term are showing as below:

NZSE:VTL' s Operating Margin % Range Over the Past 10 Years
Min: -2.07   Med: 9.64   Max: 19.77
Current: 9.2


NZSE:VTL's Operating Margin % is not ranked
in the Telecommunication Services industry.
Industry Median: 9.73 vs NZSE:VTL: 9.20

Vital's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Vital's Operating Income for the six months ended in Jun. 2025 was NZ$6.03 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2025 was NZ$2.44 Mil.


Vital  (NZSE:VTL) 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 Nokia’s 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.


Vital Operating Margin % Related Terms


Vital Operating Margin % Historical Data

* Premium members only.

The historical data trend for Vital'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.

Vital Operating Margin % Chart

Vital Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24 Jun25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.47 -2.07 3.27 11.03 9.20

Vital Semi-Annual Data
Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 32.53 -20.04 42.13 -27.88 44.13

NZSE:VTL vs TMUS, T, VZ: Operating Margin % Comparison

For the Telecom Services subindustry, Vital'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.


Vital Operating Margin % vs Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Vital's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Vital's Operating Margin % falls into.



Vital 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.

Vital's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as

Operating Margin %=Operating Income (A: Jun. 2025 ) / Revenue (A: Jun. 2025 )
=2.441 / 26.532
=9.20 %

Vital's Operating Margin % for the quarter that ended in Jun. 2025 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2025 ) / Revenue (Q: Jun. 2025 )
=6.029 / 13.662
=44.13 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 44.13% mean?
Vital (NZSE:VTL) has a Operating Margin % of 44.13% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Vital and its competitors. This is 358% above median its historical median of 9.64.
Is Vital's Operating Margin % too high?
Vital's current Operating Margin % of 44.13% is 358% above median its 10-year median of 9.64. The Telecommunication Services industry median Operating Margin % is 9.73. Vital's value of 44.13% is 353.5% above this industry median.
How does Vital's Operating Margin % compare to TMUS and T?
Vital's Operating Margin % of 44.13% can be compared against companies in the Telecommunication Services industry. The industry median Operating Margin % is 9.73. Vital's value of 44.13% is 353.5% above this benchmark. While the company's 10-year median is 9.64 vs. the industry median of 9.73, Vital 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 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. Vital's current Operating Margin % of 44.13% is 353.5% 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 Vital 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. Vital's current Operating Margin % is 44.13%, which is 358% above median its own 10-year median of 9.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vital stock overvalued right now?
Vital (NZSE:VTL) has a current Operating Margin % of 44.13%. The stock's GF Value™ is NZ$0.24, compared to a current price of NZ$0.44 — trading 83.3% above its estimated fair value. The current Operating Margin % is 44.13%, which is 358% above median its 10-year median of 9.64 and 353.5% above the Telecommunication Services industry median of 9.73. 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 Vital (NZSE:VTL), the current Operating Margin % is 44.13% as of Jun. 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.

Vital Business Description

Address Cambridge Terrace, Te Aro, Level 6, No.25-27, Te Aro, Wellington, NTL, NZL, 6011
Vital Ltd provides communication services in New Zealand. The company operates through segments: Wireless Networks, Wired Networks and others, The majority of the revenue comes from the Wireless Networks that include traditional mobile radio business along with it is associated with finance leasing, data, and GPS tracking products, and the wireless broadband business. The Wired Networks segment includes the wired broadband business and provides broadband connectivity and ancillary-related services to a range of wholesale customers and end-users.