Global Payments (STU:GLO) 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.
Global Payments Operating Margin % Related Terms
Global Payments Operating Margin % Historical Data
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The historical data trend for Global Payments'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:GLO vs ULS, ARMK, CPRT: Operating Margin % Comparison
For the Specialty Business Services subindustry, Global Payments'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.
Global Payments Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Global Payments's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Global Payments'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.
Global Payments'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.
Global Payments (STU:GLO) has a Operating Margin % of -0.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Global Payments and its competitors. Over the past decade, Global Payments' Operating Margin % has ranged from 12.04 to 21.99. According to the industry distribution chart, Global Payments ranks #306 out of 1070 companies in the Business Services industry, placing it in the top 28.6%.
Is Global Payments' Operating Margin % too high?
Global Payments' current Operating Margin % is -0.53%. Over the past 10 years, this metric has ranged from a low of 12.04 to a high of 21.99. Based on the distribution chart, Global Payments ranks #306 out of 1070 companies in the Business Services industry, which is above the industry midpoint. Overall, Global Payments has a GF Score™ of 82/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Global Payments' Operating Margin % compare to ULS and ARMK?
According to the Business Services industry distribution chart, Global Payments ranks #306 out of 1070 companies for Operating Margin %. This puts Global Payments in the upper half of its industry. The industry median Operating Margin % is 6.33. Historically, Global Payments' own Operating Margin % has ranged from 12.04 to 21.99 over the past decade. 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.33, based on 1,070 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 Global Payments and its competitors. For the Business Services industry, the median Operating Margin % is 6.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Global Payments's current Operating Margin % is -0.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Global Payments stock overvalued right now?
Based on GuruFocus' analysis, Global Payments (STU:GLO) is currently considered Possible Value Trap. The stock's GF Value™ is €108.96, compared to a current price of €59.80 — trading 45.1% below its estimated fair value. The current Operating Margin % is -0.53%. Global Payments' overall GF Score™ is 82/100 with 3 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 Global Payments (STU:GLO), the current Operating Margin % is -0.53% 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 Global Payments (STU:GLO) Overvalued in 2026?
Based on GuruFocus' analysis, Global Payments stock appears to be undervalued.
The current stock price of €59.80 is trading 45.1% below its estimated GF Value™ of €108.96.
GuruFocus considers Global Payments to be Possible Value Trap.
Key valuation signals for STU:GLO:
Operating Margin %: -0.53%
GF Value™: €108.96 vs. price of €59.80 (45.1% below fair value)
No single metric tells the full story. See the STU:GLO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Global Payments is a leading provider of payment processing and software solutions and historically focused on serving small and midsize merchants. The Worldpay acquisition pushes the company into the large merchant space and expands the company's international operations. Following the Worldpay acquisition, the company will process almost $4 trilliion in payment volume.
82GF 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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