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.
Goldfine Manufacturers Operating Margin % Related Terms
Goldfine Manufacturers Operating Margin % Historical Data
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The historical data trend for Goldfine Manufacturers'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.
For the Luxury Goods subindustry, Goldfine Manufacturers'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.
Goldfine Manufacturers Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Goldfine Manufacturers's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Goldfine Manufacturers'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.
Goldfine Manufacturers's Operating Margin % for the fiscal year that ended in Dec. 2013 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.
Goldfine Manufacturers (BKK:GFM-R) has a Operating Margin % of 9.11% as of Sep. 2014. Operating margin is the ratio of total operating income to net sales. View historical data on Goldfine Manufacturers and its competitors. This is 50% below median its historical median of 18.10. Over the past decade, Goldfine Manufacturers' Operating Margin % has ranged from 10.31 to 24.19.
Is Goldfine Manufacturers' Operating Margin % too high?
Goldfine Manufacturers' current Operating Margin % of 9.11% is 50% below median its 10-year median of 18.10. Over the past 10 years, this metric has ranged from a low of 10.31 to a high of 24.19. The Retail - Cyclical industry median Operating Margin % is 3.91. Goldfine Manufacturers' value of 9.11% is 133.3% above this industry median.
How does Goldfine Manufacturers' Operating Margin % compare to competitors?
Goldfine Manufacturers' Operating Margin % of 9.11% can be compared against companies in the Retail - Cyclical industry. The industry median Operating Margin % is 3.91. Goldfine Manufacturers' value of 9.11% is 133.3% above this benchmark. Historically, Goldfine Manufacturers' own Operating Margin % has ranged from 10.31 to 24.19 over the past decade. While the company's 10-year median is 18.10 vs. the industry median of 3.91, Goldfine Manufacturers 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 3.91, based on 1,128 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. Goldfine Manufacturers's current Operating Margin % of 9.11% is 133.3% 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 Goldfine Manufacturers and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Goldfine Manufacturers's current Operating Margin % is 9.11%, which is 50% below median its own 10-year median of 18.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Goldfine Manufacturers stock overvalued right now?
Goldfine Manufacturers (BKK:GFM-R) has a current Operating Margin % of 9.11%. The current Operating Margin % is 9.11%, which is 50% below median its 10-year median of 18.10 and 133.3% above the Retail - Cyclical industry median of 3.91. 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 Goldfine Manufacturers (BKK:GFM-R), the current Operating Margin % is 9.11% as of Sep. 2014. 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.
Goldfine Manufacturers Public Company Limited was incorporated on 26 September 1989 in Thailand. The Company is a manufacturer, importer and exporter of ornaments and jewelries. It manufactures and exports gold, silver, platinum jewelry sets with diamonds, precious stones, semi-precious stones and others.
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