Lorne Park Capital Partners (TSXV:LPC) 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.
Lorne Park Capital Partners Operating Margin % Related Terms
Lorne Park Capital Partners Operating Margin % Historical Data
* 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.
Lorne Park Capital Partners Operating Margin % Chart
TSXV:LPC vs BLK, BX, KKR: Operating Margin % Comparison
For the Asset Management subindustry, Lorne Park Capital Partners'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.
Lorne Park Capital Partners Operating Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Lorne Park Capital Partners's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lorne Park Capital Partners's Operating Margin % falls into.
Lorne Park Capital Partners 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.
Lorne Park Capital Partners's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Lorne Park Capital Partners (TSXV:LPC) has a Operating Margin % of 4.95% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lorne Park Capital Partners and its competitors. This is 32% below median its historical median of 7.29.
Is Lorne Park Capital Partners' Operating Margin % too high?
Lorne Park Capital Partners' current Operating Margin % of 4.95% is 32% below median its 10-year median of 7.29. The Asset Management industry median Operating Margin % is 17.18. Lorne Park Capital Partners' value of 4.95% is 71.2% below this industry median. Overall, Lorne Park Capital Partners has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Lorne Park Capital Partners' Operating Margin % compare to BLK and BX?
Lorne Park Capital Partners' Operating Margin % of 4.95% can be compared against companies in the Asset Management industry. The industry median Operating Margin % is 17.18. Lorne Park Capital Partners' value of 4.95% is 71.2% below this benchmark. While the company's 10-year median is 7.29 vs. the industry median of 17.18, Lorne Park Capital Partners 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 an Asset Management company?
The median Operating Margin % among Asset Management companies is 17.18, based on 650 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. Lorne Park Capital Partners's current Operating Margin % of 4.95% is 71.2% 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 Lorne Park Capital Partners and its competitors. For the Asset Management industry, the median Operating Margin % is 17.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lorne Park Capital Partners's current Operating Margin % is 4.95%, which is 32% below median its own 10-year median of 7.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lorne Park Capital Partners stock overvalued right now?
Lorne Park Capital Partners (TSXV:LPC) has a current Operating Margin % of 4.95%. The stock's GF Value™ is C$1.74, compared to a current price of C$2.22 — trading 27.6% above its estimated fair value. The current Operating Margin % is 4.95%, which is 32% below median its 10-year median of 7.29 and 71.2% below the Asset Management industry median of 17.18. Lorne Park Capital Partners' overall GF Score™ is 16/100 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 Lorne Park Capital Partners (TSXV:LPC), the current Operating Margin % is 4.95% as of Jun. 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 Lorne Park Capital Partners (TSXV:LPC) Overvalued in 2026?
Based on GuruFocus' analysis, Lorne Park Capital Partners stock appears to be overvalued.
The current stock price of C$2.22 is trading 27.6% above its estimated GF Value™ of C$1.74.
Key valuation signals for TSXV:LPC:
Operating Margin %: 4.95% (32% below median its 10-year median of 7.29)
GF Value™: C$1.74 vs. price of C$2.22 (27.6% above fair value)
Industry Position: 71.2% below the Asset Management median
No single metric tells the full story. See the TSXV:LPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lorne Park Capital Partners Inc is a Canada-based company engaged in building a network of boutique investment managers and wealth advisors. The company provides asset management services to investors, estates, trusts, and foundations. Geographically, the company derives maximum revenue from its business in Canada and also has a presence in the United States of America.
16GF Score
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