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.
MindChamps PreSchool Operating Margin % Related Terms
MindChamps PreSchool Operating Margin % Historical Data
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The historical data trend for MindChamps PreSchool'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.
SGX:CNE vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, MindChamps PreSchool'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.
MindChamps PreSchool Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, MindChamps PreSchool's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MindChamps PreSchool'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.
MindChamps PreSchool'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.
MindChamps PreSchool (SGX:CNE) has a Operating Margin % of -3.99% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on MindChamps PreSchool and its competitors. According to the industry distribution chart, MindChamps PreSchool ranks #198 out of 255 companies in the Education industry, placing it in the top 77.6%.
Is MindChamps PreSchool's Operating Margin % too high?
MindChamps PreSchool's current Operating Margin % is -3.99%. Based on the distribution chart, MindChamps PreSchool ranks #198 out of 255 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, MindChamps PreSchool has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MindChamps PreSchool's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, MindChamps PreSchool ranks #198 out of 255 companies for Operating Margin %. This places MindChamps PreSchool in the lower half of its industry. The industry median Operating Margin % is 9.59. 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. 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 MindChamps PreSchool 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. MindChamps PreSchool's current Operating Margin % is -3.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MindChamps PreSchool stock overvalued right now?
Based on GuruFocus' analysis, MindChamps PreSchool (SGX:CNE) is currently considered Modestly Undervalued. The stock's GF Value™ is S$0.15, compared to a current price of S$0.12 — trading 17.3% below its estimated fair value. The current Operating Margin % is -3.99%. MindChamps PreSchool's overall GF Score™ is 42/100 with 5 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 MindChamps PreSchool (SGX:CNE), the current Operating Margin % is -3.99% 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 MindChamps PreSchool (SGX:CNE) Overvalued in 2026?
Based on GuruFocus' analysis, MindChamps PreSchool stock appears to be undervalued.
The current stock price of S$0.12 is trading 17.3% below its estimated GF Value™ of S$0.15.
GuruFocus considers MindChamps PreSchool to be Modestly Undervalued.
Key valuation signals for SGX:CNE:
Operating Margin %: -3.99%
GF Value™: S$0.15 vs. price of S$0.12 (17.3% below fair value)
No single metric tells the full story. See the SGX:CNE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MindChamps PreSchool Ltd is a Singapore-based investment holding company. Principally, it is engaged in the business of childcare services. The company operates through four segments, namely Education, Franchise, Corporate, and Others. The education segment provides childcare, education, and learning-related services for preschool children. The franchise segment is involved in the franchising of childcare services and enrichment classes. Its Corporate segment provides administrative support services, exclusive territory business sales and corporate office. Its other segment comprises of higher education programs, business, and management consulting services. The company generates revenue mainly through services offered in the education segment of Australia.
42GF Score
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