Perennial Energy Holdings (FRA:PEZ) 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.
Perennial Energy Holdings Operating Margin % Related Terms
Perennial Energy 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.
Perennial Energy Holdings Operating Margin % Chart
FRA:PEZ vs HCC, AMR, METC: Operating Margin % Comparison
For the Coking Coal subindustry, Perennial Energy 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.
Perennial Energy Holdings Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Perennial Energy Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Perennial Energy Holdings's Operating Margin % falls into.
Perennial Energy 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.
Perennial Energy 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.
Perennial Energy Holdings (FRA:PEZ) has a Operating Margin % of 12.31% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Perennial Energy Holdings and its competitors. This is 67% below median its historical median of 37.81. Over the past decade, Perennial Energy Holdings' Operating Margin % has ranged from 10.69 to 53.25. According to the industry distribution chart, Perennial Energy Holdings ranks #95 out of 616 companies in the Steel industry, placing it in the top 15.4%.
Is Perennial Energy Holdings' Operating Margin % too high?
Perennial Energy Holdings' current Operating Margin % of 12.31% is 67% below median its 10-year median of 37.81. Over the past 10 years, this metric has ranged from a low of 10.69 to a high of 53.25. The Steel industry median Operating Margin % is 3.00. Perennial Energy Holdings' value of 12.31% is 310.3% above this industry median. Based on the distribution chart, Perennial Energy Holdings ranks #95 out of 616 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Perennial Energy Holdings has a GF Score™ of 56/100, reflecting its overall financial health beyond just this single metric.
How does Perennial Energy Holdings' Operating Margin % compare to HCC and AMR?
According to the Steel industry distribution chart, Perennial Energy Holdings ranks #95 out of 616 companies for Operating Margin %. This places Perennial Energy Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.00. Perennial Energy Holdings' value of 12.31% is 310.3% above this benchmark. Historically, Perennial Energy Holdings' own Operating Margin % has ranged from 10.69 to 53.25 over the past decade. While the company's 10-year median is 37.81 vs. the industry median of 3.00, Perennial Energy 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 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. Perennial Energy Holdings's current Operating Margin % of 12.31% is 310.3% 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 Perennial Energy Holdings and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Perennial Energy Holdings's current Operating Margin % is 12.31%, which is 67% below median its own 10-year median of 37.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perennial Energy Holdings stock overvalued right now?
Perennial Energy Holdings (FRA:PEZ) has a current Operating Margin % of 12.31%. The stock's GF Value™ is €0.07, compared to a current price of €0.08 — trading 7.9% above its estimated fair value. The current Operating Margin % is 12.31%, which is 67% below median its 10-year median of 37.81 and 310.3% above the Steel industry median of 3.00. Perennial Energy Holdings' overall GF Score™ is 56/100 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 Perennial Energy Holdings (FRA:PEZ), the current Operating Margin % is 12.31% 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 Perennial Energy Holdings (FRA:PEZ) Overvalued in 2026?
Based on GuruFocus' analysis, Perennial Energy Holdings stock appears to be overvalued.
The current stock price of €0.08 is trading 7.9% above its estimated GF Value™ of €0.07.
Key valuation signals for FRA:PEZ:
Operating Margin %: 12.31% (67% below median its 10-year median of 37.81)
GF Value™: €0.07 vs. price of €0.08 (7.9% above fair value)
Industry Position: 310.3% above the Steel median (#95 of 616)
No single metric tells the full story. See the FRA:PEZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perennial Energy Holdings Ltd is a coal mining company. Along with its subsidiaries, it is principally engaged in the exploration and mining of coking coal and coal refinery in the People's Republic of China. It operates three underground coal mines, namely, Hongguo Coal Mine, Baogushan Coal Mine, and Xiejiahegou Coal Mine. The company earns revenue from the sale of Clean coking coal, which accounts for the majority of the revenue, Raw coal, Middling coal, Sludge coal, and sales of coalbed methane gas.
56GF Score
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