Premier InvestmentsASX:PMV -2.05%76 Operating Margin % is 20.09% as of Jan. 2026, which is 15% above its 10-year median of 17.40. GuruFocus rates ASX:PMV with a GF Score™ of 76/100 and a GF Value™ of A$11.99 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 1,123 Retail - Cyclical companies, Premier Investments ranks better than 90.12% on this metric.
Premier Investments (ASX:PMV) 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.
Premier Investments Operating Margin % Related Terms
Premier Investments Operating Margin % Historical Data
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The historical data trend for Premier Investments'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:PMV vs TJX, ROST, BURL: Operating Margin % Comparison
For the Apparel Retail subindustry, Premier Investments'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.
Premier Investments Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Premier Investments's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Premier Investments's Operating Margin % falls into.
Premier Investments 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.
Premier Investments's Operating Margin % for the fiscal year that ended in Jul. 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.
Premier Investments (ASX:PMV) has a Operating Margin % of 20.09% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Premier Investments and its competitors. This is 15% above median its historical median of 17.40. Over the past decade, Premier Investments' Operating Margin % has ranged from 10.79 to 22.78. According to the industry distribution chart, Premier Investments ranks #111 out of 1123 companies in the Retail - Cyclical industry, placing it in the top 9.9%.
Is Premier Investments' Operating Margin % too high?
Premier Investments' current Operating Margin % of 20.09% is 15% above median its 10-year median of 17.40. Over the past 10 years, this metric has ranged from a low of 10.79 to a high of 22.78. The Retail - Cyclical industry median Operating Margin % is 3.93. Premier Investments' value of 20.09% is 411.2% above this industry median. Based on the distribution chart, Premier Investments ranks #111 out of 1123 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Premier Investments has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Premier Investments' Operating Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Premier Investments ranks #111 out of 1123 companies for Operating Margin %. This places Premier Investments in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.93. Premier Investments' value of 20.09% is 411.2% above this benchmark. Historically, Premier Investments' own Operating Margin % has ranged from 10.79 to 22.78 over the past decade. While the company's 10-year median is 17.40 vs. the industry median of 3.93, Premier Investments 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 - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.93, based on 1,123 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. Premier Investments's current Operating Margin % of 20.09% is 411.2% 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 Premier Investments and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Premier Investments's current Operating Margin % is 20.09%, which is 15% above median its own 10-year median of 17.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Premier Investments stock overvalued right now?
Based on GuruFocus' analysis, Premier Investments (ASX:PMV) is currently considered Modestly Overvalued. The stock's GF Value™ is A$11.99, compared to a current price of A$14.32 — trading 19.4% above its estimated fair value. The current Operating Margin % is 20.09%, which is 15% above median its 10-year median of 17.40 and 411.2% above the Retail - Cyclical industry median of 3.93. Premier Investments' overall GF Score™ is 76/100 with 4 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 Premier Investments (ASX:PMV), the current Operating Margin % is 20.09% as of Jan. 2026. 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 Premier Investments (ASX:PMV) Overvalued in 2026?
Based on GuruFocus' analysis, Premier Investments stock appears to be overvalued.
The current stock price of A$14.32 is trading 19.4% above its estimated GF Value™ of A$11.99.
GuruFocus considers Premier Investments to be Modestly Overvalued.
Key valuation signals for ASX:PMV:
Operating Margin %: 20.09% (15% above median its 10-year median of 17.40)
GF Value™: A$11.99 vs. price of A$14.32 (19.4% above fair value)
Industry Position: 411.2% above the Retail - Cyclical median (#111 of 1123)
No single metric tells the full story. See the ASX:PMV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Premier Investments owns two global retail brands. While Smiggle has been operating outside of its core Australian and New Zealand markets for many years, the more prolific fashion brand Peter Alexander only recently entered the United Kingdom. The unique Smiggle brand retails children's stationery in Australia and overseas markets. Premier materially restructured in 2025, merging its five core apparel brands with department store Myer. It distributed its Myer equity stake to its shareholders with an in-specie capital reduction and dividend.Premier is also a significant shareholder in Australia-listed Breville Group.
76GF Score
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