Exxaro ResourcesEXXAF -2.04%80 Operating Margin % is 11.91% as of Dec. 2025, which is 46% below its 10-year median of 22.15. GuruFocus rates EXXAF with a GF Score™ of 80/100 and a GF Value™ of $11.48 (Fairly Valued). The stock has 8 warning signs investors should review. Among 130 Other Energy Sources companies, Exxaro Resources ranks better than 81.54% 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.
Exxaro Resources Operating Margin % Related Terms
Exxaro Resources Operating Margin % Historical Data
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The historical data trend for Exxaro Resources'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 Thermal Coal subindustry, Exxaro Resources'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.
Exxaro Resources Operating Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Exxaro Resources's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Exxaro Resources'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.
Exxaro Resources'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.
Exxaro Resources (EXXAF) has a Operating Margin % of 11.91% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Exxaro Resources and its competitors. This is 46% below median its historical median of 22.15. Over the past decade, Exxaro Resources' Operating Margin % has ranged from 6.63 to 34.07. According to the industry distribution chart, Exxaro Resources ranks #24 out of 130 companies in the Other Energy Sources industry, placing it in the top 18.5%.
Is Exxaro Resources' Operating Margin % too high?
Exxaro Resources' current Operating Margin % of 11.91% is 46% below median its 10-year median of 22.15. Over the past 10 years, this metric has ranged from a low of 6.63 to a high of 34.07. The Other Energy Sources industry median Operating Margin % is 4.57. Exxaro Resources' value of 11.91% is 160.6% above this industry median. Based on the distribution chart, Exxaro Resources ranks #24 out of 130 companies in the Other Energy Sources industry, which is in the top quartile — a strong position relative to peers. Overall, Exxaro Resources has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Exxaro Resources' Operating Margin % compare to CNR?
According to the Other Energy Sources industry distribution chart, Exxaro Resources ranks #24 out of 130 companies for Operating Margin %. This places Exxaro Resources in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.57. Exxaro Resources' value of 11.91% is 160.6% above this benchmark. Historically, Exxaro Resources' own Operating Margin % has ranged from 6.63 to 34.07 over the past decade. While the company's 10-year median is 22.15 vs. the industry median of 4.57, Exxaro Resources 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 an Other Energy Sources company?
The median Operating Margin % among Other Energy Sources companies is 4.57, based on 130 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. Exxaro Resources's current Operating Margin % of 11.91% is 160.6% 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 Exxaro Resources and its competitors. For the Other Energy Sources industry, the median Operating Margin % is 4.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Exxaro Resources's current Operating Margin % is 11.91%, which is 46% below median its own 10-year median of 22.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Exxaro Resources stock overvalued right now?
Based on GuruFocus' analysis, Exxaro Resources (EXXAF) is currently considered Fairly Valued. The stock's GF Value™ is $11.48, compared to a current price of $12.00 — trading 4.5% above its estimated fair value. The current Operating Margin % is 11.91%, which is 46% below median its 10-year median of 22.15 and 160.6% above the Other Energy Sources industry median of 4.57. Exxaro Resources' overall GF Score™ is 80/100 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 Exxaro Resources (EXXAF), the current Operating Margin % is 11.91% 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 Exxaro Resources (EXXAF) Overvalued in 2026?
Based on GuruFocus' analysis, Exxaro Resources stock appears to be overvalued.
The current stock price of $12.00 is trading 4.5% above its estimated GF Value™ of $11.48.
GuruFocus considers Exxaro Resources to be Fairly Valued.
Key valuation signals for EXXAF:
Operating Margin %: 11.91% (46% below median its 10-year median of 22.15)
GF Value™: $11.48 vs. price of $12.00 (4.5% above fair value)
Industry Position: 160.6% above the Other Energy Sources median (#24 of 130)
No single metric tells the full story. See the EXXAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Exxaro Resources Ltd is one of the South Africa-based diversified resources companies. The company's operating segments are: Coal, Energy, Metals, and Others. The majority of its revenue comes from the coal segment, whose operations are located in the Waterberg and Mpumalanga regions and are split between coal commercial operations and coal-tied operations and produce thermal and metallurgical coal, Commercial Waterberg is comprised mainly of the Grootegeluk operation, Commercial Mpumalanga comprising the Belfast and Leeuwpan operations, and Tied comprising of the Matla mine supplying its entire coal supply to Eskom; and Others comprises of the other coal affiliated operation. Geographically, the company derives majority of its revenue from the RSA region ( Republic of South Africa).
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