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Xtep International HoldingsFRA:4QI -0.96%55 Operating Margin % is 8.39% as of Dec. 2025, which is 35% below its 10-year median of 12.81. GuruFocus rates FRA:4QI with a GF Score™ of 55/100 and a GF Value™ of €0.62 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,130 Retail - Cyclical companies, Xtep International Holdings ranks better than 84.78% on this metric.
Xtep International Holdings (FRA:4QI) 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.
Xtep International Holdings Operating Margin % Related Terms
Xtep International Holdings 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.
Xtep International Holdings Operating Margin % Chart
FRA:4QI vs TJX, ROST, BURL: Operating Margin % Comparison
For the Apparel Retail subindustry, Xtep International Holdings'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.
Xtep International Holdings Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Xtep International Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Xtep International Holdings's Operating Margin % falls into.
Xtep International Holdings 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.
Xtep International Holdings'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.
Xtep International Holdings (FRA:4QI) has a Operating Margin % of 8.39% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Xtep International Holdings and its competitors. This is 35% below median its historical median of 12.81. Over the past decade, Xtep International Holdings' Operating Margin % has ranged from 9.56 to 16.16. According to the industry distribution chart, Xtep International Holdings ranks #172 out of 1130 companies in the Retail - Cyclical industry, placing it in the top 15.2%.
Is Xtep International Holdings' Operating Margin % too high?
Xtep International Holdings' current Operating Margin % of 8.39% is 35% below median its 10-year median of 12.81. Over the past 10 years, this metric has ranged from a low of 9.56 to a high of 16.16. The Retail - Cyclical industry median Operating Margin % is 3.92. Xtep International Holdings' value of 8.39% is 114% above this industry median. Based on the distribution chart, Xtep International Holdings ranks #172 out of 1130 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Xtep International Holdings has a GF Score™ of 55/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Xtep International Holdings' Operating Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Xtep International Holdings ranks #172 out of 1130 companies for Operating Margin %. This places Xtep International Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.92. Xtep International Holdings' value of 8.39% is 114% above this benchmark. Historically, Xtep International Holdings' own Operating Margin % has ranged from 9.56 to 16.16 over the past decade. While the company's 10-year median is 12.81 vs. the industry median of 3.92, Xtep International Holdings 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 3.92, based on 1,130 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. Xtep International Holdings's current Operating Margin % of 8.39% is 114% 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 Xtep International Holdings and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xtep International Holdings's current Operating Margin % is 8.39%, which is 35% below median its own 10-year median of 12.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xtep International Holdings stock overvalued right now?
Based on GuruFocus' analysis, Xtep International Holdings (FRA:4QI) is currently considered Significantly Undervalued. The stock's GF Value™ is €0.62, compared to a current price of €0.41 — trading 33.5% below its estimated fair value. The current Operating Margin % is 8.39%, which is 35% below median its 10-year median of 12.81 and 114% above the Retail - Cyclical industry median of 3.92. Xtep International Holdings' overall GF Score™ is 55/100 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 Xtep International Holdings (FRA:4QI), the current Operating Margin % is 8.39% 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 Xtep International Holdings (FRA:4QI) Overvalued in 2026?
Based on GuruFocus' analysis, Xtep International Holdings stock appears to be undervalued.
The current stock price of €0.41 is trading 33.5% below its estimated GF Value™ of €0.62.
GuruFocus considers Xtep International Holdings to be Significantly Undervalued.
Key valuation signals for FRA:4QI:
Operating Margin %: 8.39% (35% below median its 10-year median of 12.81)
GF Value™: €0.62 vs. price of €0.41 (33.5% below fair value)
Industry Position: 114% above the Retail - Cyclical median (#172 of 1130)
No single metric tells the full story. See the FRA:4QI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xtep International Holdings Ltd is principally engaged in the design, development, manufacturing, sales, marketing and brand management of sports products including footwear, apparel and accessories for adults and children. With its core Xtep brand, as well as Saucony and Merrell under its diversified brand portfolio, and professional sports segments through an extensive distribution network of more than 8,100 stores. It has two reportable operating segments from continuing operations as follows: (a) mass market segment, including signature brand, Xtep; and (b) professional sports segment, including signature brands, Saucony and Merrell.
55GF 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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