Sphere Entertainment Co (NYSE:SPHR) 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.
Sphere Entertainment Co Operating Margin % Related Terms
Sphere Entertainment Co Operating Margin % Historical Data
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The historical data trend for Sphere Entertainment Co'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.
SPHR vs LION, VSNT, MANU: Operating Margin % Comparison
For the Entertainment subindustry, Sphere Entertainment Co'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.
Sphere Entertainment Co Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Sphere Entertainment Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sphere Entertainment Co's Operating Margin % falls into.
Sphere Entertainment Co 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.
Sphere Entertainment Co'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.
Sphere Entertainment Co (SPHR) has a Operating Margin % of 2.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sphere Entertainment Co and its competitors. According to the industry distribution chart, Sphere Entertainment Co ranks #695 out of 1023 companies in the Media - Diversified industry, placing it in the top 67.9%.
Is Sphere Entertainment Co's Operating Margin % too high?
Sphere Entertainment Co's current Operating Margin % is 2.77%. The Media - Diversified industry median Operating Margin % is 2.51. Sphere Entertainment Co's value of 2.77% is 10.4% above this industry median. Based on the distribution chart, Sphere Entertainment Co ranks #695 out of 1023 companies in the Media - Diversified industry, which is below the industry midpoint. Overall, Sphere Entertainment Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sphere Entertainment Co's Operating Margin % compare to LION and VSNT?
According to the Media - Diversified industry distribution chart, Sphere Entertainment Co ranks #695 out of 1023 companies for Operating Margin %. This places Sphere Entertainment Co in the lower half of its industry. The industry median Operating Margin % is 2.51. Sphere Entertainment Co's value of 2.77% is 10.4% above this benchmark. 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 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. Sphere Entertainment Co's current Operating Margin % of 2.77% is 10.4% 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 Sphere Entertainment Co and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sphere Entertainment Co's current Operating Margin % is 2.77%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sphere Entertainment Co stock overvalued right now?
Based on GuruFocus' analysis, Sphere Entertainment Co (SPHR) is currently considered Significantly Overvalued. The stock's GF Value™ is $66.63, compared to a current price of $169.85 — trading 154.9% above its estimated fair value. The current Operating Margin % is 2.77% and 10.4% above the Media - Diversified industry median of 2.51. Sphere Entertainment Co's overall GF Score™ is 58/100 with 6 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 Sphere Entertainment Co (SPHR), the current Operating Margin % is 2.77% 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 Sphere Entertainment Co (SPHR) Overvalued in 2026?
Based on GuruFocus' analysis, Sphere Entertainment Co stock appears to be overvalued.
The current stock price of $169.85 is trading 154.9% above its estimated GF Value™ of $66.63.
GuruFocus considers Sphere Entertainment Co to be Significantly Overvalued.
Key valuation signals for SPHR:
Operating Margin %: 2.77%
GF Value™: $66.63 vs. price of $169.85 (154.9% above fair value)
Industry Position: 10.4% above the Media - Diversified median (#695 of 1023)
No single metric tells the full story. See the SPHR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sphere Entertainment Co is a live entertainment and media company. The firm creates, writes, casts, produces, and tours shows and events. The group has two reportable segments: Sphere and MSG Networks. Sphere is a next-generation entertainment medium, and MSG Networks operates two regional sports and entertainment networks, as well as a direct-to-consumer (DTC) and authenticated streaming product.
58GF Score
Get the complete analysis for SPHR
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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