Sandfire ResourcesASX:SFR -1.30%86 Operating Margin % is 23.60% as of Dec. 2025, which is 0% above its 10-year median of 23.54. GuruFocus rates ASX:SFR with a GF Score™ of 86/100 and a GF Value™ of A$14.50 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 841 Metals & Mining companies, Sandfire Resources ranks better than 72.89% 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.
Sandfire Resources Operating Margin % Related Terms
Sandfire Resources Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sandfire Resources'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:SFR vs SCCO, FCX: Operating Margin % Comparison
For the Copper subindustry, Sandfire Resources'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.
Sandfire Resources Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Sandfire Resources's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sandfire Resources'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.
Sandfire Resources'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.
Sandfire Resources (ASX:SFR) has a Operating Margin % of 23.60% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sandfire Resources and its competitors. This is near median its historical median of 23.54. According to the industry distribution chart, Sandfire Resources ranks #228 out of 841 companies in the Metals & Mining industry, placing it in the top 27.1%.
Is Sandfire Resources' Operating Margin % too high?
Sandfire Resources' current Operating Margin % of 23.60% is near median its 10-year median of 23.54. The Metals & Mining industry median Operating Margin % is 5.72. Sandfire Resources' value of 23.60% is 312.6% above this industry median. Based on the distribution chart, Sandfire Resources ranks #228 out of 841 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Sandfire Resources has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sandfire Resources' Operating Margin % compare to SCCO and FCX?
According to the Metals & Mining industry distribution chart, Sandfire Resources ranks #228 out of 841 companies for Operating Margin %. This puts Sandfire Resources in the upper half of its industry. The industry median Operating Margin % is 5.72. Sandfire Resources' value of 23.60% is 312.6% above this benchmark. While the company's 10-year median is 23.54 vs. the industry median of 5.72, Sandfire Resources 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.72, based on 841 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. Sandfire Resources's current Operating Margin % of 23.60% is 312.6% 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 Sandfire Resources and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sandfire Resources's current Operating Margin % is 23.60%, which is near median its own 10-year median of 23.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sandfire Resources stock overvalued right now?
Based on GuruFocus' analysis, Sandfire Resources (ASX:SFR) is currently considered Significantly Overvalued. The stock's GF Value™ is A$14.50, compared to a current price of A$19.67 — trading 35.7% above its estimated fair value. The current Operating Margin % is 23.60%, which is near median its 10-year median of 23.54 and 312.6% above the Metals & Mining industry median of 5.72. Sandfire Resources' overall GF Score™ is 86/100 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 Sandfire Resources (ASX:SFR), the current Operating Margin % is 23.60% 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 Sandfire Resources (ASX:SFR) Overvalued in 2026?
Based on GuruFocus' analysis, Sandfire Resources stock appears to be overvalued.
The current stock price of A$19.67 is trading 35.7% above its estimated GF Value™ of A$14.50.
GuruFocus considers Sandfire Resources to be Significantly Overvalued.
Key valuation signals for ASX:SFR:
Operating Margin %: 23.60% (near median its 10-year median of 23.54)
GF Value™: A$14.50 vs. price of A$19.67 (35.7% above fair value)
Industry Position: 312.6% above the Metals & Mining median (#228 of 841)
No single metric tells the full story. See the ASX:SFR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sandfire Resources Ltd is a copper-focused mineral exploration and development company. The company's operating segments include DeGrussa Copper operations, MATSA Copper Operations, Black Butte Copper Project, Motheo Copper Operations, and Exploration and Other. It derives key revenue from the MATSA Copper Operations segment, which consists of the Minas de Aguas Tenidas (MATSA) polymetallic mining complex in Spain and exploration and evaluation activities in Spain and Portugal. The operations comprise three underground mines and a central processing facility. The mines generate revenue from the sale of copper, zinc, and lead concentrates containing a silver by-product. Geographically, the company generates maximum revenue from Spain, followed by China, Sweden, Malaysia, and other regions.
86GF Score
Get the complete analysis for ASX:SFR
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
ASX:SFR has been successfully added to your 
