Halfords GroupCHIX:HFDL +0.56%75 Operating Margin % is 2.96% as of Sep. 2025, which is 52% below its 10-year median of 6.21. GuruFocus rates CHIX:HFDL with a GF Score™ of 75/100 and a GF Value™ of £1.72 (Fairly Valued). The stock has 8 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Halfords Group ranks worse than 56.21% on this metric.
Halfords Group PLC operating margin has been in a 5-year decline. The average rate of decline per year is -18.7%.
The historical rank and industry rank for Halfords Group's Operating Margin % or its related term are showing as below:
CHIX:HFDl'
s Operating Margin % Range Over the Past 10 Years
Min: 2.84 Med: 6.21 Max: 8.86
Current: 2.84
CHIX:HFDl's Operating Margin % is ranked worse than 56.21% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs CHIX:HFDl: 2.84
Halfords Group's 5-Year Average Operating Margin % Growth Rate was -18.70% per year.
Halfords Group (CHIX:HFDl) 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.
Halfords Group Operating Margin % Related Terms
Halfords Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Halfords 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.
CHIX:HFDL vs CASY, WSM, ULTA: Operating Margin % Comparison
For the Specialty Retail subindustry, Halfords 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.
Halfords Group Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Halfords Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Halfords 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.
Halfords Group's Operating Margin % for the fiscal year that ended in Mar. 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.
Halfords Group (CHIX:HFDL) has a Operating Margin % of 2.96% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Halfords Group and its competitors. This is 52% below median its historical median of 6.21. Over the past decade, Halfords Group's Operating Margin % has ranged from 2.84 to 8.86. According to the industry distribution chart, Halfords Group ranks #634 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 56.2%.
Is Halfords Group's Operating Margin % too high?
Halfords Group's current Operating Margin % of 2.96% is 52% below median its 10-year median of 6.21. Over the past 10 years, this metric has ranged from a low of 2.84 to a high of 8.86. The Retail - Cyclical industry median Operating Margin % is 3.91. Halfords Group's value of 2.96% is 24.2% below this industry median. Based on the distribution chart, Halfords Group ranks #634 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, Halfords Group has a GF Score™ of 75/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Halfords Group's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Halfords Group ranks #634 out of 1128 companies for Operating Margin %. This places Halfords Group in the lower half of its industry. The industry median Operating Margin % is 3.91. Halfords Group's value of 2.96% is 24.2% below this benchmark. Historically, Halfords Group's own Operating Margin % has ranged from 2.84 to 8.86 over the past decade. While the company's 10-year median is 6.21 vs. the industry median of 3.91, Halfords Group has consistently been below 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. Halfords Group's current Operating Margin % of 2.96% is 24.2% below 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 Halfords Group 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. Halfords Group's current Operating Margin % is 2.96%, which is 52% below median its own 10-year median of 6.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Halfords Group stock overvalued right now?
Based on GuruFocus' analysis, Halfords Group (CHIX:HFDL) is currently considered Fairly Valued. The stock's GF Value™ is £1.72, compared to a current price of £1.80 — trading 4.9% above its estimated fair value. The current Operating Margin % is 2.96%, which is 52% below median its 10-year median of 6.21 and 24.2% below the Retail - Cyclical industry median of 3.91. Halfords Group's overall GF Score™ is 75/100 with 8 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 Halfords Group (CHIX:HFDL), the current Operating Margin % is 2.96% as of Sep. 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 Halfords Group (CHIX:HFDL) Overvalued in 2026?
Based on GuruFocus' analysis, Halfords Group stock appears to be overvalued.
The current stock price of £1.80 is trading 4.9% above its estimated GF Value™ of £1.72.
GuruFocus considers Halfords Group to be Fairly Valued.
Key valuation signals for CHIX:HFDL:
Operating Margin %: 2.96% (52% below median its 10-year median of 6.21)
GF Value™: £1.72 vs. price of £1.80 (4.9% above fair value)
Industry Position: 24.2% below the Retail - Cyclical median (#634 of 1128)
No single metric tells the full story. See the CHIX:HFDL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Halfords Group PLC is a retailer of automotive and cycling products. The company also provides vehicle servicing, maintenance, and repairs through garages and mobile vans. It is also engaged in the provision of software as a service. The company operates retail stores and auto centers in the United Kingdom and Ireland, and it participates in online retail as well. The business is divided into two segments: Retail and Autocentres. The Retail segment which derives maximum revenue, operates retail outlets for its automotive, leisure, and cycling products. The Autocentres segment operates centers for car servicing and repair in the U.K. Halfords' key cycling brands include Apollo, Carrera, and Boardman, but the company offers third-party bike brands as well.
75GF Score
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