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.
SMI - Ste Metallurgique d'Imiter Operating Margin % Related Terms
SMI - Ste Metallurgique d'Imiter Operating Margin % Historical Data
* 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 Other Industrial Metals & Mining subindustry, SMI - Ste Metallurgique d'Imiter'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.
SMI - Ste Metallurgique d'Imiter Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, SMI - Ste Metallurgique d'Imiter's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SMI - Ste Metallurgique d'Imiter'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.
* 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.
SMI - Ste Metallurgique d'Imiter (CAS:SMI) has a Operating Margin % of 46.42% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on SMI - Ste Metallurgique d'Imiter and its competitors. This is 242% above median its historical median of 13.59. According to the industry distribution chart, SMI - Ste Metallurgique d'Imiter ranks #133 out of 841 companies in the Metals & Mining industry, placing it in the top 15.8%.
Is SMI - Ste Metallurgique d'Imiter's Operating Margin % too high?
SMI - Ste Metallurgique d'Imiter's current Operating Margin % of 46.42% is 242% above median its 10-year median of 13.59. The Metals & Mining industry median Operating Margin % is 5.79. SMI - Ste Metallurgique d'Imiter's value of 46.42% is 701.7% above this industry median. Based on the distribution chart, SMI - Ste Metallurgique d'Imiter ranks #133 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, SMI - Ste Metallurgique d'Imiter has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does SMI - Ste Metallurgique d'Imiter's Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, SMI - Ste Metallurgique d'Imiter ranks #133 out of 841 companies for Operating Margin %. This places SMI - Ste Metallurgique d'Imiter in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.79. SMI - Ste Metallurgique d'Imiter's value of 46.42% is 701.7% above this benchmark. While the company's 10-year median is 13.59 vs. the industry median of 5.79, SMI - Ste Metallurgique d'Imiter 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 5.79, 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. SMI - Ste Metallurgique d'Imiter's current Operating Margin % of 46.42% is 701.7% 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 SMI - Ste Metallurgique d'Imiter and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SMI - Ste Metallurgique d'Imiter's current Operating Margin % is 46.42%, which is 242% above median its own 10-year median of 13.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SMI - Ste Metallurgique d'Imiter stock overvalued right now?
Based on GuruFocus' analysis, SMI - Ste Metallurgique d'Imiter (CAS:SMI) is currently considered Significantly Overvalued. The stock's GF Value™ is MAD3,417.45, compared to a current price of MAD5,950.00 — trading 74.1% above its estimated fair value. The current Operating Margin % is 46.42%, which is 242% above median its 10-year median of 13.59 and 701.7% above the Metals & Mining industry median of 5.79. SMI - Ste Metallurgique d'Imiter's overall GF Score™ is 73/100 with 2 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 SMI - Ste Metallurgique d'Imiter (CAS:SMI), the current Operating Margin % is 46.42% 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 SMI - Ste Metallurgique d'Imiter (CAS:SMI) Overvalued in 2026?
Based on GuruFocus' analysis, SMI - Ste Metallurgique d'Imiter stock appears to be overvalued.
The current stock price of MAD5,950.00 is trading 74.1% above its estimated GF Value™ of MAD3,417.45.
GuruFocus considers SMI - Ste Metallurgique d'Imiter to be Significantly Overvalued.
Key valuation signals for CAS:SMI:
Operating Margin %: 46.42% (242% above median its 10-year median of 13.59)
GF Value™: MAD3,417.45 vs. price of MAD5,950.00 (74.1% above fair value)
Industry Position: 701.7% above the Metals & Mining median (#133 of 841)
No single metric tells the full story. See the CAS:SMI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SMI - Ste Metallurgique d'Imiter Business Description
SMI - Ste Metallurgique d'Imiter is a Morocco-based company engaged in the mining industry. The company's product portfolio consists of precious metals such as Silver and Gold, Copper, Zinc, Cobalt cathode, Arsenic, Nickel and many more. Its Morocco project consists of Bouskour and Tizert. The Bouskour project is located approximately 80 kilometers southeast of the city of Ouarzazate. Its Tizert project is situated approximately 80 kilometers east of the city of Agadir in the province of Taroudant. The company's Africa project comprises of Gold projects, Tri-K projects, Pumpi project, and Assosa and Budur projects.
73GF Score
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