Motorcycle HoldingsASX:MTO -0.81%85 Operating Margin % is 2.65% as of Dec. 2025, which is 8% below its 10-year median of 2.87. GuruFocus rates ASX:MTO with a GF Score™ of 85/100 and a GF Value™ of A$2.64 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Motorcycle Holdings ranks worse than 69.96% on this metric.
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.
Motorcycle Holdings Operating Margin % Related Terms
Motorcycle Holdings Operating Margin % Historical Data
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The historical data trend for Motorcycle 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.
ASX:MTO vs CVNA, PAG, ALTB: Operating Margin % Comparison
For the Auto & Truck Dealerships subindustry, Motorcycle 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.
Motorcycle Holdings Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Motorcycle Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Motorcycle Holdings'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.
Motorcycle Holdings'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.
Motorcycle Holdings (ASX:MTO) has a Operating Margin % of 2.65% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Motorcycle Holdings and its competitors. This is near median its historical median of 2.87. According to the industry distribution chart, Motorcycle Holdings ranks #927 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 70%.
Is Motorcycle Holdings' Operating Margin % too high?
Motorcycle Holdings' current Operating Margin % of 2.65% is near median its 10-year median of 2.87. The Vehicles & Parts industry median Operating Margin % is 4.86. Motorcycle Holdings' value of 2.65% is 45.5% below this industry median. Based on the distribution chart, Motorcycle Holdings ranks #927 out of 1325 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Motorcycle Holdings has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motorcycle Holdings' Operating Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Motorcycle Holdings ranks #927 out of 1325 companies for Operating Margin %. This places Motorcycle Holdings in the lower half of its industry. The industry median Operating Margin % is 4.86. Motorcycle Holdings' value of 2.65% is 45.5% below this benchmark. While the company's 10-year median is 2.87 vs. the industry median of 4.86, Motorcycle Holdings 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. Motorcycle Holdings's current Operating Margin % of 2.65% is 45.5% 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 Motorcycle Holdings and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motorcycle Holdings's current Operating Margin % is 2.65%, which is near median its own 10-year median of 2.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motorcycle Holdings stock overvalued right now?
Based on GuruFocus' analysis, Motorcycle Holdings (ASX:MTO) is currently considered Fairly Valued. The stock's GF Value™ is A$2.64, compared to a current price of A$2.45 — trading 7.2% below its estimated fair value. The current Operating Margin % is 2.65%, which is near median its 10-year median of 2.87 and 45.5% below the Vehicles & Parts industry median of 4.86. Motorcycle Holdings' overall GF Score™ is 85/100 with 5 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 Motorcycle Holdings (ASX:MTO), the current Operating Margin % is 2.65% 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 Motorcycle Holdings (ASX:MTO) Overvalued in 2026?
Based on GuruFocus' analysis, Motorcycle Holdings stock appears to be undervalued.
The current stock price of A$2.45 is trading 7.2% below its estimated GF Value™ of A$2.64.
GuruFocus considers Motorcycle Holdings to be Fairly Valued.
Key valuation signals for ASX:MTO:
Operating Margin %: 2.65% (near median its 10-year median of 2.87)
GF Value™: A$2.64 vs. price of A$2.45 (7.2% below fair value)
Industry Position: 45.5% below the Vehicles & Parts median (#927 of 1325)
No single metric tells the full story. See the ASX:MTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motorcycle Holdings Ltd is a motorcycle dealer in Australia. It has two reporting segments. First, Motorcycle Retailing, which offers a range of motorcycle products and services to the general public in Australia, including the sale of new and used motorcycles, parts, servicing, accessories, and MPPs. The segment also facilitates insurance and financing for motorcycle purchases through third-party sources. Second, the Motorcycle and Accessories Wholesaling segment, which imports and distributes a range of motorcycles, ATVs, scooters, and motorcycle parts and accessories to wholesale customers in Australia and New Zealand, including the Group's own retail outlets.
85GF Score
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