Chow Tai Fook Jewellery GroupFRA:1CT -3.13%93 Operating Margin % is 21.24% as of Mar. 2026, which is 121% above its 10-year median of 9.63. GuruFocus rates FRA:1CT with a GF Score™ of 93/100 and a GF Value™ of €1.24 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Chow Tai Fook Jewellery Group ranks better than 93.97% on this metric.
Chow Tai Fook Jewellery Group (FRA:1CT) 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.
Chow Tai Fook Jewellery Group Operating Margin % Related Terms
Chow Tai Fook Jewellery Group 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.
Chow Tai Fook Jewellery Group Operating Margin % Chart
For the Luxury Goods subindustry, Chow Tai Fook Jewellery 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.
Chow Tai Fook Jewellery Group Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Chow Tai Fook Jewellery Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chow Tai Fook Jewellery Group's Operating Margin % falls into.
Chow Tai Fook Jewellery Group Operating Margin % Calculation
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.
Chow Tai Fook Jewellery Group (FRA:1CT) has a Operating Margin % of 21.24% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chow Tai Fook Jewellery Group and its competitors. This is 121% above median its historical median of 9.63. Over the past decade, Chow Tai Fook Jewellery Group's Operating Margin % has ranged from 7.99 to 19.38. According to the industry distribution chart, Chow Tai Fook Jewellery Group ranks #68 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 6%.
Is Chow Tai Fook Jewellery Group's Operating Margin % too high?
Chow Tai Fook Jewellery Group's current Operating Margin % of 21.24% is 121% above median its 10-year median of 9.63. Over the past 10 years, this metric has ranged from a low of 7.99 to a high of 19.38. The Retail - Cyclical industry median Operating Margin % is 3.91. Chow Tai Fook Jewellery Group's value of 21.24% is 443.9% above this industry median. Based on the distribution chart, Chow Tai Fook Jewellery Group ranks #68 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Chow Tai Fook Jewellery Group has a GF Score™ of 93/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chow Tai Fook Jewellery Group's Operating Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Chow Tai Fook Jewellery Group ranks #68 out of 1128 companies for Operating Margin %. This places Chow Tai Fook Jewellery Group in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Chow Tai Fook Jewellery Group's value of 21.24% is 443.9% above this benchmark. Historically, Chow Tai Fook Jewellery Group's own Operating Margin % has ranged from 7.99 to 19.38 over the past decade. While the company's 10-year median is 9.63 vs. the industry median of 3.91, Chow Tai Fook Jewellery 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 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. Chow Tai Fook Jewellery Group's current Operating Margin % of 21.24% is 443.9% 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 Chow Tai Fook Jewellery 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. Chow Tai Fook Jewellery Group's current Operating Margin % is 21.24%, which is 121% above median its own 10-year median of 9.63. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chow Tai Fook Jewellery Group stock overvalued right now?
Based on GuruFocus' analysis, Chow Tai Fook Jewellery Group (FRA:1CT) is currently considered Fairly Valued. The stock's GF Value™ is €1.24, compared to a current price of €1.24 — trading right at its estimated fair value. The current Operating Margin % is 21.24%, which is 121% above median its 10-year median of 9.63 and 443.9% above the Retail - Cyclical industry median of 3.91. Chow Tai Fook Jewellery Group's overall GF Score™ is 93/100 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 Chow Tai Fook Jewellery Group (FRA:1CT), the current Operating Margin % is 21.24% as of Mar. 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 Chow Tai Fook Jewellery Group (FRA:1CT) Overvalued in 2026?
Based on GuruFocus' analysis, Chow Tai Fook Jewellery Group stock appears to be undervalued.
The current stock price of €1.24 is trading 0% below its estimated GF Value™ of €1.24.
GuruFocus considers Chow Tai Fook Jewellery Group to be Fairly Valued.
Key valuation signals for FRA:1CT:
Operating Margin %: 21.24% (121% above median its 10-year median of 9.63)
GF Value™: €1.24 vs. price of €1.24 (0% below fair value)
Industry Position: 443.9% above the Retail - Cyclical median (#68 of 1128)
No single metric tells the full story. See the FRA:1CT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chow Tai Fook Jewellery Group Business Description
Chow Tai Fook Jewellery Group Ltd core business is the manufacturing and selling of high-end luxury, mass luxury, and youth line jewellery products, and the distribution of watches of various brands. Its brand portfolio includes Chow Tai Fook, Hearts On Fire, Enzo and Monologue, offering a wide multiple products and an expanding range of IP collaborations. The Group's offerings include high jewellery collections and Chow Tai Fook Home, a luxury home decor category. Geographically, the Group operates through Mainland China, Hong Kong, Macau and other markets, with Mainland China contributing the majority of revenue.
93GF Score
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