Centro Escolar UniversityPHS:CEU +1.57%82 Operating Margin % is 34.42% as of Feb. 2026, which is 134% above its 10-year median of 14.73. GuruFocus rates PHS:CEU with a GF Score™ of 82/100 and a GF Value™ of ₱14.38 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 255 Education companies, Centro Escolar University ranks better than 82.75% on this metric.
Centro Escolar University (PHS:CEU) 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.
Centro Escolar University Operating Margin % Related Terms
Centro Escolar University Operating Margin % Historical Data
* 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.
Centro Escolar University Operating Margin % Chart
PHS:CEU vs EDU, TAL, GHC: Operating Margin % Comparison
For the Education & Training Services subindustry, Centro Escolar University'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.
Centro Escolar University Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Centro Escolar University's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Centro Escolar University's Operating Margin % falls into.
Centro Escolar University 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.
Centro Escolar University's Operating Margin % for the fiscal year that ended in May. 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.
Centro Escolar University (PHS:CEU) has a Operating Margin % of 34.42% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Centro Escolar University and its competitors. This is 134% above median its historical median of 14.73. Over the past decade, Centro Escolar University's Operating Margin % has ranged from 4.64 to 28.09. According to the industry distribution chart, Centro Escolar University ranks #44 out of 255 companies in the Education industry, placing it in the top 17.3%.
Is Centro Escolar University's Operating Margin % too high?
Centro Escolar University's current Operating Margin % of 34.42% is 134% above median its 10-year median of 14.73. Over the past 10 years, this metric has ranged from a low of 4.64 to a high of 28.09. The Education industry median Operating Margin % is 9.59. Centro Escolar University's value of 34.42% is 258.9% above this industry median. Based on the distribution chart, Centro Escolar University ranks #44 out of 255 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Centro Escolar University has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Centro Escolar University's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Centro Escolar University ranks #44 out of 255 companies for Operating Margin %. This places Centro Escolar University in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.59. Centro Escolar University's value of 34.42% is 258.9% above this benchmark. Historically, Centro Escolar University's own Operating Margin % has ranged from 4.64 to 28.09 over the past decade. While the company's 10-year median is 14.73 vs. the industry median of 9.59, Centro Escolar University 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 an Education company?
The median Operating Margin % among Education companies is 9.59, based on 255 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. Centro Escolar University's current Operating Margin % of 34.42% is 258.9% 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 Centro Escolar University and its competitors. For the Education industry, the median Operating Margin % is 9.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Centro Escolar University's current Operating Margin % is 34.42%, which is 134% above median its own 10-year median of 14.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Centro Escolar University stock overvalued right now?
Based on GuruFocus' analysis, Centro Escolar University (PHS:CEU) is currently considered Modestly Overvalued. The stock's GF Value™ is ₱14.38, compared to a current price of ₱16.78 — trading 16.7% above its estimated fair value. The current Operating Margin % is 34.42%, which is 134% above median its 10-year median of 14.73 and 258.9% above the Education industry median of 9.59. Centro Escolar University's overall GF Score™ is 82/100 with 7 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 Centro Escolar University (PHS:CEU), the current Operating Margin % is 34.42% as of Feb. 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 Centro Escolar University (PHS:CEU) Overvalued in 2026?
Based on GuruFocus' analysis, Centro Escolar University stock appears to be overvalued.
The current stock price of ₱16.78 is trading 16.7% above its estimated GF Value™ of ₱14.38.
GuruFocus considers Centro Escolar University to be Modestly Overvalued.
Key valuation signals for PHS:CEU:
Operating Margin %: 34.42% (134% above median its 10-year median of 14.73)
GF Value™: ₱14.38 vs. price of ₱16.78 (16.7% above fair value)
Industry Position: 258.9% above the Education median (#44 of 255)
No single metric tells the full story. See the PHS:CEU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Centro Escolar University is a Philippines-based institution of higher learning. The company is engaged in establishing, maintaining, and operating an educational institution for the training of the youth in all branches of the arts and sciences, offering classes at the tertiary level. The University operates in four geographical segments, such as Mendiola, Malolos, Makati-Gil Puyat, and Makati Legaspi campus.
82GF Score
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