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System1 GroupSTU:BBA -0.52%78 Operating Margin % is 9.42% as of Mar. 2026, which is 28% above its 10-year median of 7.37. GuruFocus rates STU:BBA with a GF Score™ of 78/100 and a GF Value™ of €4.84 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,011 Media - Diversified companies, System1 Group ranks better than 61.13% on this metric.
System1 Group (STU:BBA) 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.
System1 Group Operating Margin % Related Terms
System1 Group Operating Margin % Historical Data
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The historical data trend for System1 Group'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.
STU:BBA vs APP, OMC, TTD: Operating Margin % Comparison
For the Advertising Agencies subindustry, System1 Group'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.
System1 Group Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, System1 Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where System1 Group'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.
System1 Group's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
System1 Group (STU:BBA) has a Operating Margin % of 9.42% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on System1 Group and its competitors. This is 28% above median its historical median of 7.37. Over the past decade, System1 Group's Operating Margin % has ranged from 1.64 to 15.22. According to the industry distribution chart, System1 Group ranks #393 out of 1011 companies in the Media - Diversified industry, placing it in the top 38.9%.
Is System1 Group's Operating Margin % too high?
System1 Group's current Operating Margin % of 9.42% is 28% above median its 10-year median of 7.37. Over the past 10 years, this metric has ranged from a low of 1.64 to a high of 15.22. The Media - Diversified industry median Operating Margin % is 2.53. System1 Group's value of 9.42% is 272.3% above this industry median. Based on the distribution chart, System1 Group ranks #393 out of 1011 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, System1 Group has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does System1 Group's Operating Margin % compare to APP and OMC?
According to the Media - Diversified industry distribution chart, System1 Group ranks #393 out of 1011 companies for Operating Margin %. This puts System1 Group in the upper half of its industry. The industry median Operating Margin % is 2.53. System1 Group's value of 9.42% is 272.3% above this benchmark. Historically, System1 Group's own Operating Margin % has ranged from 1.64 to 15.22 over the past decade. While the company's 10-year median is 7.37 vs. the industry median of 2.53, System1 Group 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.53, based on 1,011 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. System1 Group's current Operating Margin % of 9.42% is 272.3% 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 System1 Group and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. System1 Group's current Operating Margin % is 9.42%, which is 28% above median its own 10-year median of 7.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is System1 Group stock overvalued right now?
Based on GuruFocus' analysis, System1 Group (STU:BBA) is currently considered Modestly Undervalued. The stock's GF Value™ is €4.84, compared to a current price of €3.86 — trading 20.2% below its estimated fair value. The current Operating Margin % is 9.42%, which is 28% above median its 10-year median of 7.37 and 272.3% above the Media - Diversified industry median of 2.53. System1 Group's overall GF Score™ is 78/100 with 2 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 System1 Group (STU:BBA), the current Operating Margin % is 9.42% 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 System1 Group (STU:BBA) Overvalued in 2026?
Based on GuruFocus' analysis, System1 Group stock appears to be undervalued.
The current stock price of €3.86 is trading 20.2% below its estimated GF Value™ of €4.84.
GuruFocus considers System1 Group to be Modestly Undervalued.
Key valuation signals for STU:BBA:
Operating Margin %: 9.42% (28% above median its 10-year median of 7.37)
GF Value™: €4.84 vs. price of €3.86 (20.2% below fair value)
Industry Position: 272.3% above the Media - Diversified median (#393 of 1011)
No single metric tells the full story. See the STU:BBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
System1 Group PLC is engaged in providing market research data and insight services. The company's geographical segments include the United States of America, Latin America (LatAm), the United Kingdom, the Rest Of Europe, and the Asia Pacific (APAC) region. A majority of its revenue is generated from its business in the United Kingdom.
78GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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