Coats GroupCHIX:COAL +1.30%61 Operating Margin % is 21.08% as of Dec. 2025, which is 52% above its 10-year median of 13.88. GuruFocus rates CHIX:COAL with a GF Score™ of 61/100 and a GF Value™ of £0.74 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,043 Manufacturing - Apparel & Accessories companies, Coats Group ranks better than 94.82% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Coats Group's Operating Income for the
six
months ended in Dec. 2025 was £120 Mil. Coats Group's Revenue for the
six
months ended in Dec. 2025 was £567 Mil. Therefore, Coats Group's Operating Margin % for the quarter that ended in Dec. 2025 was 21.08%.
Good Sign:
Coats Group PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Coats Group's Operating Margin % or its related term are showing as below:
CHIX:COAl'
s Operating Margin % Range Over the Past 10 Years
Min: 8.93 Med: 13.88 Max: 19.7
Current: 19.7
CHIX:COAl's Operating Margin % is ranked better than 94.82% of 1043
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.08
vs CHIX:COAl: 19.70
Coats Group's 5-Year Average Operating Margin % Growth Rate was 13.40% per year.
Coats Group's Operating Income for the
six
months ended in Dec. 2025 was £120 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £214 Mil.
Coats Group (CHIX:COAl) 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.
Coats Group Operating Margin % Related Terms
Coats Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Coats Group'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 Textile Manufacturing subindustry, Coats Group'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.
Coats Group Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Coats Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Coats Group'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.
Coats Group'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.
Coats Group (CHIX:COAL) has a Operating Margin % of 21.08% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Coats Group and its competitors. This is 52% above median its historical median of 13.88. Over the past decade, Coats Group's Operating Margin % has ranged from 8.93 to 19.70. According to the industry distribution chart, Coats Group ranks #54 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 5.2%.
Is Coats Group's Operating Margin % too high?
Coats Group's current Operating Margin % of 21.08% is 52% above median its 10-year median of 13.88. Over the past 10 years, this metric has ranged from a low of 8.93 to a high of 19.70. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Coats Group's value of 21.08% is 416.7% above this industry median. Based on the distribution chart, Coats Group ranks #54 out of 1043 companies in the Manufacturing - Apparel & Accessories industry, which is in the top quartile — a strong position relative to peers. Overall, Coats Group has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Coats Group's Operating Margin % compare to AIN?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Coats Group ranks #54 out of 1043 companies for Operating Margin %. This places Coats Group in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.08. Coats Group's value of 21.08% is 416.7% above this benchmark. Historically, Coats Group's own Operating Margin % has ranged from 8.93 to 19.70 over the past decade. While the company's 10-year median is 13.88 vs. the industry median of 4.08, Coats Group 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,043 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. Coats Group's current Operating Margin % of 21.08% is 416.7% 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 Coats Group and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Coats Group's current Operating Margin % is 21.08%, which is 52% above median its own 10-year median of 13.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Coats Group stock overvalued right now?
Based on GuruFocus' analysis, Coats Group (CHIX:COAL) is currently considered Fairly Valued. The stock's GF Value™ is £0.74, compared to a current price of £0.78 — trading 4.9% above its estimated fair value. The current Operating Margin % is 21.08%, which is 52% above median its 10-year median of 13.88 and 416.7% above the Manufacturing - Apparel & Accessories industry median of 4.08. Coats Group's overall GF Score™ is 61/100 with 3 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 Coats Group (CHIX:COAL), the current Operating Margin % is 21.08% 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 Coats Group (CHIX:COAL) Overvalued in 2026?
Based on GuruFocus' analysis, Coats Group stock appears to be overvalued.
The current stock price of £0.78 is trading 4.9% above its estimated GF Value™ of £0.74.
GuruFocus considers Coats Group to be Fairly Valued.
Key valuation signals for CHIX:COAL:
Operating Margin %: 21.08% (52% above median its 10-year median of 13.88)
GF Value™: £0.74 vs. price of £0.78 (4.9% above fair value)
Industry Position: 416.7% above the Manufacturing - Apparel & Accessories median (#54 of 1043)
No single metric tells the full story. See the CHIX:COAL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Coats Group PLC is a firm manufacturing thread for industrial and consumer use. Its product portfolio includes industrial thread and knitting yarns used in the apparel and footwear industries, zips, trims, composites, and fabrics. The company's customers are grouped into two segments; Apparel which is also the key revenue generating customer segment and Footwear. The company generates a majority of its revenue from China and Hong Kong and the rest from Vietnam, India, United Kingdom and other regions.
61GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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