Steamships Trading Co Ltd has never been profitable in the past 3 years. It lost money every year.
Steamships Trading Co (ASX:SST) 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.
Steamships Trading Co Operating Margin % Related Terms
Steamships Trading Co Operating Margin % Historical Data
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The historical data trend for Steamships Trading Co'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:SST vs FDX, UPS, JBHT: Operating Margin % Comparison
For the Integrated Freight & Logistics subindustry, Steamships Trading Co'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.
Steamships Trading Co Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Steamships Trading Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Steamships Trading Co's Operating Margin % falls into.
Steamships Trading Co 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.
Steamships Trading Co's Operating Margin % for the fiscal year that ended in Dec. 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.
Steamships Trading Co (ASX:SST) has a Operating Margin % of -32.54% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Steamships Trading Co and its competitors. According to the industry distribution chart, Steamships Trading Co ranks #941 out of 1007 companies in the Transportation industry, placing it in the top 93.4%.
Is Steamships Trading Co's Operating Margin % too high?
Steamships Trading Co's current Operating Margin % is -32.54%. Based on the distribution chart, Steamships Trading Co ranks #941 out of 1007 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Steamships Trading Co has a GF Score™ of 55/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Steamships Trading Co's Operating Margin % compare to FDX and UPS?
According to the Transportation industry distribution chart, Steamships Trading Co ranks #941 out of 1007 companies for Operating Margin %. This places Steamships Trading Co in the lower half of its industry. The industry median Operating Margin % is 7.36. 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. 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 Steamships Trading Co and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Steamships Trading Co's current Operating Margin % is -32.54%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Steamships Trading Co stock overvalued right now?
Based on GuruFocus' analysis, Steamships Trading Co (ASX:SST) is currently considered Possible Value Trap. The stock's GF Value™ is A$102.19, compared to a current price of A$10.00 — trading 90.2% below its estimated fair value. The current Operating Margin % is -32.54%. Steamships Trading Co's overall GF Score™ is 55/100 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 Steamships Trading Co (ASX:SST), the current Operating Margin % is -32.54% 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 Steamships Trading Co (ASX:SST) Overvalued in 2026?
Based on GuruFocus' analysis, Steamships Trading Co stock appears to be undervalued.
The current stock price of A$10.00 is trading 90.2% below its estimated GF Value™ of A$102.19.
GuruFocus considers Steamships Trading Co to be Possible Value Trap.
Key valuation signals for ASX:SST:
Operating Margin %: -32.54%
GF Value™: A$102.19 vs. price of A$10.00 (90.2% below fair value)
No single metric tells the full story. See the ASX:SST stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Steamships Trading Co Ltd is a diversified holding company. The company's operating segment includes i) Property and hospitality: It consists of shipping and land-based freight transport and related services divisions. ii) Logistics: It consists of shipping and land-based freight transport and related services divisions. iii) Commercial & investment: It consists of commercial, head office administration function and insurance activities. The majority of the company's revenue is derived from the Property and hospitality segment. Geographically, the company operates almost wholly in Papua New Guinea.
55GF Score
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