Power Metal Resources (FRA:2M50) 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.
Power Metal Resources Operating Margin % Related Terms
Power Metal Resources Operating Margin % Historical Data
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The historical data trend for Power Metal 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.
Power Metal Resources Operating Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, Power Metal 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.
Power Metal Resources Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Power Metal Resources's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Power Metal Resources's Operating Margin % falls into.
Power Metal Resources 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.
Power Metal 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.
What does a Operating Margin % of -4,900.00% mean?
Power Metal Resources (FRA:2M50) has a Operating Margin % of -4,900.00% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Power Metal Resources and its competitors. According to the industry distribution chart, Power Metal Resources ranks #770 out of 841 companies in the Metals & Mining industry, placing it in the top 91.6%.
Is Power Metal Resources' Operating Margin % too high?
Power Metal Resources' current Operating Margin % is -4,900.00%. Based on the distribution chart, Power Metal Resources ranks #770 out of 841 companies in the Metals & Mining industry, which is in the bottom quartile relative to peers. Overall, Power Metal Resources has a GF Score™ of 37/100, reflecting its overall financial health beyond just this single metric.
How does Power Metal Resources' Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Power Metal Resources ranks #770 out of 841 companies for Operating Margin %. This places Power Metal Resources in the lower half of its industry. The industry median Operating Margin % is 5.72. 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 5.72, 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. 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 Power Metal Resources and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power Metal Resources's current Operating Margin % is -4,900.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Metal Resources stock overvalued right now?
Power Metal Resources (FRA:2M50) has a current Operating Margin % of -4,900.00%. The stock's GF Value™ is €0.04, compared to a current price of €0.11 — trading 175% above its estimated fair value. The current Operating Margin % is -4,900.00%. Power Metal Resources' overall GF Score™ is 37/100 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 Power Metal Resources (FRA:2M50), the current Operating Margin % is -4,900.00% 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 Power Metal Resources (FRA:2M50) Overvalued in 2026?
Based on GuruFocus' analysis, Power Metal Resources stock appears to be overvalued.
The current stock price of €0.11 is trading 175% above its estimated GF Value™ of €0.04.
Key valuation signals for FRA:2M50:
Operating Margin %: -4,900.00%
GF Value™: €0.04 vs. price of €0.11 (175% above fair value)
No single metric tells the full story. See the FRA:2M50 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Metal Resources PLC is an exploration company and development company based in United Kingdom. It is engaged in the exploration of mineral resources and exploration. The Group is involved in the exploration and exploitation of mineral resources in Africa, Australia, Canada, the USA, and other countries. Company geographical segments include: Australia, Botswana, Canada, Saudi Arabia, the UK, and the USA.
37GF Score
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