Severn TrentSVTRF 80 Operating Margin % is 28.32% as of Mar. 2026, which is 1% above its 10-year median of 28.11. GuruFocus rates SVTRF with a GF Score™ of 80/100 and a GF Value™ of $42.38 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 499 Utilities - Regulated companies, Severn Trent ranks better than 85.77% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Severn Trent's Operating Income for the
six
months ended in Mar. 2026 was $526 Mil. Severn Trent's Revenue for the
six
months ended in Mar. 2026 was $1,859 Mil. Therefore, Severn Trent's Operating Margin % for the quarter that ended in Mar. 2026 was 28.32%.
Good Sign:
Severn Trent PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Severn Trent's Operating Margin % or its related term are showing as below:
SVTRF'
s Operating Margin % Range Over the Past 10 Years
Min: 21.63 Med: 28.11 Max: 33.21
Current: 30.41
SVTRF's Operating Margin % is ranked better than 85.77% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs SVTRF: 30.41
Severn Trent's 5-Year Average Operating Margin % Growth Rate was 1.90% per year.
Severn Trent's Operating Income for the
six
months ended in Mar. 2026 was $526 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $1,156 Mil.
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.
Severn Trent Operating Margin % Related Terms
Severn Trent Operating Margin % Historical Data
* Premium members only.
The historical data trend for Severn Trent'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.
SVTRF vs AWK, WTRG, AWR: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, Severn Trent'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.
Severn Trent Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Severn Trent's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Severn Trent'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.
Severn Trent'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.
Severn Trent (SVTRF) has a Operating Margin % of 28.32% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Severn Trent and its competitors. This is near median its historical median of 28.11. Over the past decade, Severn Trent's Operating Margin % has ranged from 21.63 to 33.21. According to the industry distribution chart, Severn Trent ranks #71 out of 499 companies in the Utilities - Regulated industry, placing it in the top 14.2%.
Is Severn Trent's Operating Margin % too high?
Severn Trent's current Operating Margin % of 28.32% is near median its 10-year median of 28.11. Over the past 10 years, this metric has ranged from a low of 21.63 to a high of 33.21. The Utilities - Regulated industry median Operating Margin % is 14.97. Severn Trent's value of 28.32% is 89.2% above this industry median. Based on the distribution chart, Severn Trent ranks #71 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Severn Trent has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Severn Trent's Operating Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Severn Trent ranks #71 out of 499 companies for Operating Margin %. This places Severn Trent in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. Severn Trent's value of 28.32% is 89.2% above this benchmark. Historically, Severn Trent's own Operating Margin % has ranged from 21.63 to 33.21 over the past decade. While the company's 10-year median is 28.11 vs. the industry median of 14.97, Severn Trent 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 Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Severn Trent's current Operating Margin % of 28.32% is 89.2% 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 Severn Trent and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Severn Trent's current Operating Margin % is 28.32%, which is near median its own 10-year median of 28.11. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Severn Trent stock overvalued right now?
Based on GuruFocus' analysis, Severn Trent (SVTRF) is currently considered Modestly Undervalued. The stock's GF Value™ is $42.38, compared to a current price of $38.23 — trading 9.8% below its estimated fair value. The current Operating Margin % is 28.32%, which is near median its 10-year median of 28.11 and 89.2% above the Utilities - Regulated industry median of 14.97. Severn Trent's overall GF Score™ is 80/100 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 Severn Trent (SVTRF), the current Operating Margin % is 28.32% 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 Severn Trent (SVTRF) Overvalued in 2026?
Based on GuruFocus' analysis, Severn Trent stock appears to be undervalued.
The current stock price of $38.23 is trading 9.8% below its estimated GF Value™ of $42.38.
GuruFocus considers Severn Trent to be Modestly Undervalued.
Key valuation signals for SVTRF:
Operating Margin %: 28.32% (near median its 10-year median of 28.11)
GF Value™: $42.38 vs. price of $38.23 (9.8% below fair value)
Industry Position: 89.2% above the Utilities - Regulated median (#71 of 499)
No single metric tells the full story. See the SVTRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Severn Trent PLC is a United Kingdom-based water utilities company. It mainly operates in the U.K., but also in the United States and other countries in Europe. The company derives the majority of its revenue from its regulated water and wastewater segment, which supplies water and conducts sewage and environmental services. The company also operates a business services segment that is involved with renewable energy operations. The company provides contract services to industrial and municipal clients to develop water treatment facilities and networks. The firm generates its renewable energy by using hydropower, wind power, and solar power.
80GF Score
Get the complete analysis for SVTRF
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SVTRF has been successfully added to your 
