Coles GroupASX:COL +1.22%76 Operating Margin % is 3.92% as of Dec. 2025, which is 4% below its 10-year median of 4.10. GuruFocus rates ASX:COL with a GF Score™ of 76/100 and a GF Value™ of A$20.07 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 310 Retail - Defensive companies, Coles Group ranks better than 56.13% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Coles Group's Operating Income for the
six
months ended in Dec. 2025 was A$929 Mil. Coles Group's Revenue for the
six
months ended in Dec. 2025 was A$23,694 Mil. Therefore, Coles Group's Operating Margin % for the quarter that ended in Dec. 2025 was 3.92%.
The historical rank and industry rank for Coles Group's Operating Margin % or its related term are showing as below:
ASX:COL'
s Operating Margin % Range Over the Past 10 Years
Min: 2.8 Med: 4.1 Max: 4.53
Current: 3.85
ASX:COL's Operating Margin % is ranked better than 56.13% of 310
companies
in the Retail - Defensive industry
Industry Median: 3.275
vs ASX:COL: 3.85
Coles Group's 5-Year Average Operating Margin % Growth Rate was -0.90% per year.
Coles Group's Operating Income for the
six
months ended in Dec. 2025 was A$929 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$1,732 Mil.
Coles Group (ASX:COL) 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.
Coles Group Operating Margin % Related Terms
Coles Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Coles 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.
ASX:COL vs KR, SFM, ACI: Operating Margin % Comparison
For the Grocery Stores subindustry, Coles 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.
Coles Group Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Coles Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Coles Group'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.
Coles Group's Operating Margin % for the fiscal year that ended in Jun. 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.
Coles Group (ASX:COL) has a Operating Margin % of 3.92% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Coles Group and its competitors. This is near median its historical median of 4.10. Over the past decade, Coles Group's Operating Margin % has ranged from 2.80 to 4.53. According to the industry distribution chart, Coles Group ranks #136 out of 310 companies in the Retail - Defensive industry, placing it in the top 43.9%.
Is Coles Group's Operating Margin % too high?
Coles Group's current Operating Margin % of 3.92% is near median its 10-year median of 4.10. Over the past 10 years, this metric has ranged from a low of 2.80 to a high of 4.53. The Retail - Defensive industry median Operating Margin % is 3.28. Coles Group's value of 3.92% is 19.7% above this industry median. Based on the distribution chart, Coles Group ranks #136 out of 310 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Coles Group has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Coles Group's Operating Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Coles Group ranks #136 out of 310 companies for Operating Margin %. This puts Coles Group in the upper half of its industry. The industry median Operating Margin % is 3.28. Coles Group's value of 3.92% is 19.7% above this benchmark. Historically, Coles Group's own Operating Margin % has ranged from 2.80 to 4.53 over the past decade. While the company's 10-year median is 4.10 vs. the industry median of 3.28, Coles Group 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 a Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 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. Coles Group's current Operating Margin % of 3.92% is 19.7% 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 Coles Group and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coles Group's current Operating Margin % is 3.92%, which is near median its own 10-year median of 4.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coles Group stock overvalued right now?
Based on GuruFocus' analysis, Coles Group (ASX:COL) is currently considered Modestly Overvalued. The stock's GF Value™ is A$20.07, compared to a current price of A$24.06 — trading 19.9% above its estimated fair value. The current Operating Margin % is 3.92%, which is near median its 10-year median of 4.10 and 19.7% above the Retail - Defensive industry median of 3.28. Coles Group's overall GF Score™ is 76/100 with 8 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 Coles Group (ASX:COL), the current Operating Margin % is 3.92% as of Dec. 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 Coles Group (ASX:COL) Overvalued in 2026?
Based on GuruFocus' analysis, Coles Group stock appears to be overvalued.
The current stock price of A$24.06 is trading 19.9% above its estimated GF Value™ of A$20.07.
GuruFocus considers Coles Group to be Modestly Overvalued.
Key valuation signals for ASX:COL:
Operating Margin %: 3.92% (near median its 10-year median of 4.10)
GF Value™: A$20.07 vs. price of A$24.06 (19.9% above fair value)
Industry Position: 19.7% above the Retail - Defensive median (#136 of 310)
No single metric tells the full story. See the ASX:COL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coles is one of Australia's largest retailers, operating the second-largest supermarket chain behind market leader Woolworths, and the country's second-largest liquor chain. The group has an extensive store network of over 1,800 stores and roughly 80% of Australians live within a 10-minute drive from a Coles store. The retailer employs some 120,000 people, who process some 20 million individual customer transactions a week. This compares with Woolworths processing about 30 million customer transactions per week from Australia's population of 27 million.
76GF Score
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