Pets at Home GroupFRA:6P8 +3.54%69 Operating Margin % is 6.90% as of Mar. 2026, which is 27% below its 10-year median of 9.40. GuruFocus rates FRA:6P8 with a GF Score™ of 69/100 and a GF Value™ of €3.30 (Significantly Undervalued). The stock has 7 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Pets at Home Group ranks better than 64.8% on this metric.
Pets at Home Group (FRA:6P8) 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.
Pets at Home Group Operating Margin % Related Terms
Pets at Home Group Operating Margin % Historical Data
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The historical data trend for Pets at Home 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.
FRA:6P8 vs CASY, WSM, ULTA: Operating Margin % Comparison
For the Specialty Retail subindustry, Pets at Home 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.
Pets at Home Group Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Pets at Home Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pets at Home 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.
Pets at Home Group's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Pets at Home Group (FRA:6P8) has a Operating Margin % of 6.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pets at Home Group and its competitors. This is 27% below median its historical median of 9.40. Over the past decade, Pets at Home Group's Operating Margin % has ranged from 5.49 to 12.09. According to the industry distribution chart, Pets at Home Group ranks #397 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 35.2%.
Is Pets at Home Group's Operating Margin % too high?
Pets at Home Group's current Operating Margin % of 6.90% is 27% below median its 10-year median of 9.40. Over the past 10 years, this metric has ranged from a low of 5.49 to a high of 12.09. The Retail - Cyclical industry median Operating Margin % is 3.91. Pets at Home Group's value of 6.90% is 76.7% above this industry median. Based on the distribution chart, Pets at Home Group ranks #397 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Pets at Home Group has a GF Score™ of 69/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pets at Home Group's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Pets at Home Group ranks #397 out of 1128 companies for Operating Margin %. This puts Pets at Home Group in the upper half of its industry. The industry median Operating Margin % is 3.91. Pets at Home Group's value of 6.90% is 76.7% above this benchmark. Historically, Pets at Home Group's own Operating Margin % has ranged from 5.49 to 12.09 over the past decade. While the company's 10-year median is 9.40 vs. the industry median of 3.91, Pets at Home 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. Pets at Home Group's current Operating Margin % of 6.90% is 76.7% 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 Pets at Home 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. Pets at Home Group's current Operating Margin % is 6.90%, which is 27% below median its own 10-year median of 9.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pets at Home Group stock overvalued right now?
Based on GuruFocus' analysis, Pets at Home Group (FRA:6P8) is currently considered Significantly Undervalued. The stock's GF Value™ is €3.30, compared to a current price of €2.05 — trading 38% below its estimated fair value. The current Operating Margin % is 6.90%, which is 27% below median its 10-year median of 9.40 and 76.7% above the Retail - Cyclical industry median of 3.91. Pets at Home Group's overall GF Score™ is 69/100 with 7 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 Pets at Home Group (FRA:6P8), the current Operating Margin % is 6.90% 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 Pets at Home Group (FRA:6P8) Overvalued in 2026?
Based on GuruFocus' analysis, Pets at Home Group stock appears to be undervalued.
The current stock price of €2.05 is trading 38% below its estimated GF Value™ of €3.30.
GuruFocus considers Pets at Home Group to be Significantly Undervalued.
Key valuation signals for FRA:6P8:
Operating Margin %: 6.90% (27% below median its 10-year median of 9.40)
GF Value™: €3.30 vs. price of €2.05 (38% below fair value)
Industry Position: 76.7% above the Retail - Cyclical median (#397 of 1128)
No single metric tells the full story. See the FRA:6P8 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pets at Home Group PLC is an omnichannel British retailer operating mainly in the United Kingdom. The company has a network of stores, websites, grooming salons, and pet services, such as veterinary. The product portfolio is diverse, including items for dogs, cats, fish, reptiles, birds, and wildlife. The items sold are from the following categories: food, pet beds, toys, pet clothing, kennels, collars, healthcare, grooming, training, books, and accessories. The products are sold under the Pets at Home brand, private brand, and labels. The veterinary services are located within stores, as well as in stand-alone locations, throughout the U.K.
69GF Score
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