TOP Financial GroupTOP -0.62%65 Operating Margin % is 6.66% as of Sep. 2025, which is 71% below its 10-year median of 23.01. GuruFocus rates TOP with a GF Score™ of 65/100 and a GF Value™ of $1.45 (Fairly Valued). The stock has 9 warning signs investors should review. Among 667 Capital Markets companies, TOP Financial Group ranks worse than 89.51% on this metric.
TOP Financial Group (NAS:TOP) 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.
TOP Financial Group Operating Margin % Related Terms
TOP Financial Group Operating Margin % Historical Data
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The historical data trend for TOP Financial 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.
TOP vs NCTY, AURE, SIEB: Operating Margin % Comparison
For the Capital Markets subindustry, TOP Financial 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.
TOP Financial Group Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, TOP Financial Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TOP Financial Group's Operating Margin % falls into.
TOP Financial Group 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.
TOP Financial Group's Operating Margin % for the fiscal year that ended in Mar. 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.
TOP Financial Group (TOP) has a Operating Margin % of 6.66% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on TOP Financial Group and its competitors. This is 71% below median its historical median of 23.01. According to the industry distribution chart, TOP Financial Group ranks #597 out of 667 companies in the Capital Markets industry, placing it in the top 89.5%.
Is TOP Financial Group's Operating Margin % too high?
TOP Financial Group's current Operating Margin % of 6.66% is 71% below median its 10-year median of 23.01. The Capital Markets industry median Operating Margin % is 7.13. TOP Financial Group's value of 6.66% is 6.6% below this industry median. Based on the distribution chart, TOP Financial Group ranks #597 out of 667 companies in the Capital Markets industry, which is in the bottom quartile relative to peers. Overall, TOP Financial Group has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does TOP Financial Group's Operating Margin % compare to NCTY and AURE?
According to the Capital Markets industry distribution chart, TOP Financial Group ranks #597 out of 667 companies for Operating Margin %. This places TOP Financial Group in the lower half of its industry. The industry median Operating Margin % is 7.13. TOP Financial Group's value of 6.66% is 6.6% below this benchmark. While the company's 10-year median is 23.01 vs. the industry median of 7.13, TOP Financial Group has consistently been below 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 Capital Markets company?
The median Operating Margin % among Capital Markets companies is 7.13, based on 667 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. TOP Financial Group's current Operating Margin % of 6.66% is 6.6% below 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 TOP Financial Group and its competitors. For the Capital Markets industry, the median Operating Margin % is 7.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TOP Financial Group's current Operating Margin % is 6.66%, which is 71% below median its own 10-year median of 23.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TOP Financial Group stock overvalued right now?
Based on GuruFocus' analysis, TOP Financial Group (TOP) is currently considered Fairly Valued. The stock's GF Value™ is $1.45, compared to a current price of $1.59 — trading 9.7% above its estimated fair value. The current Operating Margin % is 6.66%, which is 71% below median its 10-year median of 23.01 and 6.6% below the Capital Markets industry median of 7.13. TOP Financial Group's overall GF Score™ is 65/100 with 9 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 TOP Financial Group (TOP), the current Operating Margin % is 6.66% as of Sep. 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 TOP Financial Group (TOP) Overvalued in 2026?
Based on GuruFocus' analysis, TOP Financial Group stock appears to be overvalued.
The current stock price of $1.59 is trading 9.7% above its estimated GF Value™ of $1.45.
GuruFocus considers TOP Financial Group to be Fairly Valued.
Key valuation signals for TOP:
Operating Margin %: 6.66% (71% below median its 10-year median of 23.01)
GF Value™: $1.45 vs. price of $1.59 (9.7% above fair value)
Industry Position: 6.6% below the Capital Markets median (#597 of 667)
No single metric tells the full story. See the TOP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TOP Financial Group Ltd is an online brokerage firm in Hong Kong specializing in trading local and overseas equities, futures, and options products. The Company generates brokerage commission income by enabling its customers to trade on multiple exchanges present globally. The company operates in only one segment which is the futures brokerage service.
65GF Score
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