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Shoprite Holdings (Shoprite Holdings) Operating Margin % : 4.79% (As of Dec. 2023)


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What is Shoprite Holdings Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Shoprite Holdings's Operating Income for the six months ended in Dec. 2023 was $311 Mil. Shoprite Holdings's Revenue for the six months ended in Dec. 2023 was $6,498 Mil. Therefore, Shoprite Holdings's Operating Margin % for the quarter that ended in Dec. 2023 was 4.79%.

Good Sign:

Shoprite Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Shoprite Holdings's Operating Margin % or its related term are showing as below:

SRGHY' s Operating Margin % Range Over the Past 10 Years
Min: 4.51   Med: 5.3   Max: 5.6
Current: 4.85


SRGHY's Operating Margin % is ranked better than
57.53% of 1109 companies
in the Retail - Cyclical industry
Industry Median: 3.47 vs SRGHY: 4.85

Shoprite Holdings's 5-Year Average Operating Margin % Growth Rate was 2.10% per year.

Shoprite Holdings's Operating Income for the six months ended in Dec. 2023 was $311 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $596 Mil.


Shoprite Holdings Operating Margin % Historical Data

The historical data trend for Shoprite Holdings'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.

* Premium members only.

Shoprite Holdings Operating Margin % Chart

Shoprite Holdings Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.17 4.78 5.55 5.42 4.92

Shoprite Holdings Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.76 5.08 4.92 4.92 4.79

Competitive Comparison of Shoprite Holdings's Operating Margin %

For the Department Stores subindustry, Shoprite Holdings'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.


Shoprite Holdings's Operating Margin % Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Shoprite Holdings's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Shoprite Holdings's Operating Margin % falls into.



Shoprite Holdings 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.

Shoprite Holdings's Operating Margin % for the fiscal year that ended in Jun. 2023 is calculated as

Operating Margin %=Operating Income (A: Jun. 2023 ) / Revenue (A: Jun. 2023 )
=564.423 / 11467.5
=4.92 %

Shoprite Holdings's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=311.011 / 6498.165
=4.79 %

* 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.


Shoprite Holdings  (OTCPK:SRGHY) 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 Nokia’s 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.


Shoprite Holdings Operating Margin % Related Terms

Thank you for viewing the detailed overview of Shoprite Holdings's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Shoprite Holdings (Shoprite Holdings) Business Description

Address
Cnr William Dabs Street and Old Paarl Road, Brackenfell, WC, ZAF, 7560
Shoprite Holdings Ltd is part of The Shoprite Group of Companies, an African food retailer, which operates in countries across Africa and the Indian Ocean Islands. The primary business is food retailing. Besides food retailing, the company is operating in furniture, house products, fast foods, pharmacies, and liquor business segments. The company is targeting consumers at all income levels. The Checkers, Checkers Hyper, and House & Home stores address higher-income groups, while Shoprite Usave focuses on the lower end of the market. Shoprite and OK Furniture offer products for the middle- to lower-income market. The company's reportable segment includes, Supermarkets RSA, Supermarkets Non-RSA, Furniture and Other operating segment.

Shoprite Holdings (Shoprite Holdings) Headlines

From GuruFocus

Shoprite Holdings Ltd: Africa's Largest Food Retailer

By Carmine Romano Carmine Romano 01-16-2013