Canaf InvestmentsCAFZF 66 Operating Margin % is 7.34% as of Apr. 2026, which is 2% below its 10-year median of 7.52. GuruFocus rates CAFZF with a GF Score™ of 66/100 and a GF Value™ of $0.17 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 615 Steel companies, Canaf Investments ranks better than 83.9% 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.
Canaf Investments Operating Margin % Related Terms
Canaf Investments Operating Margin % Historical Data
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The historical data trend for Canaf 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.
CAFZF vs HCC, AMR, METC: Operating Margin % Comparison
For the Coking Coal subindustry, Canaf 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.
Canaf Investments Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Canaf Investments's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Canaf Investments'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.
Canaf Investments's Operating Margin % for the fiscal year that ended in Oct. 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.
Canaf Investments (CAFZF) has a Operating Margin % of 7.34% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Canaf Investments and its competitors. This is near median its historical median of 7.52. According to the industry distribution chart, Canaf Investments ranks #99 out of 615 companies in the Steel industry, placing it in the top 16.1%.
Is Canaf Investments' Operating Margin % too high?
Canaf Investments' current Operating Margin % of 7.34% is near median its 10-year median of 7.52. The Steel industry median Operating Margin % is 2.99. Canaf Investments' value of 7.34% is 145.5% above this industry median. Based on the distribution chart, Canaf Investments ranks #99 out of 615 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Canaf Investments has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Canaf Investments' Operating Margin % compare to HCC and AMR?
According to the Steel industry distribution chart, Canaf Investments ranks #99 out of 615 companies for Operating Margin %. This places Canaf Investments in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.99. Canaf Investments' value of 7.34% is 145.5% above this benchmark. While the company's 10-year median is 7.52 vs. the industry median of 2.99, Canaf 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 Steel company?
The median Operating Margin % among Steel companies is 2.99, based on 615 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. Canaf Investments's current Operating Margin % of 7.34% is 145.5% 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 Canaf Investments and its competitors. For the Steel industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Canaf Investments's current Operating Margin % is 7.34%, which is near median its own 10-year median of 7.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Canaf Investments stock overvalued right now?
Based on GuruFocus' analysis, Canaf Investments (CAFZF) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.17, compared to a current price of $0.24 — trading 40.6% above its estimated fair value. The current Operating Margin % is 7.34%, which is near median its 10-year median of 7.52 and 145.5% above the Steel industry median of 2.99. Canaf Investments' overall GF Score™ is 66/100 with 1 warning sign 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 Canaf Investments (CAFZF), the current Operating Margin % is 7.34% as of Apr. 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 Canaf Investments (CAFZF) Overvalued in 2026?
Based on GuruFocus' analysis, Canaf Investments stock appears to be overvalued.
The current stock price of $0.24 is trading 40.6% above its estimated GF Value™ of $0.17.
GuruFocus considers Canaf Investments to be Significantly Overvalued.
Key valuation signals for CAFZF:
Operating Margin %: 7.34% (near median its 10-year median of 7.52)
GF Value™: $0.17 vs. price of $0.24 (40.6% above fair value)
Industry Position: 145.5% above the Steel median (#99 of 615)
No single metric tells the full story. See the CAFZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Canaf Investments Inc is a Canadian company that owns and operates a coal processing plant in South Africa that processes coal and coal products into calcine, a coke substitute with high carbon content. The company, through its subsidiaries, produces calcined anthracite used in the manufacturing process of steel and manganese. The company operates in two reportable segments: head office operations in Canada and the coal processing business in South Africa, out of which the majority of revenue comes from South Africa.
66GF Score
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