Stanmore ResourcesFRA:S0D -8.39%79 Operating Margin % is 22.25% as of Dec. 2025, which is 35% above its 10-year median of 16.46. GuruFocus rates FRA:S0D with a GF Score™ of 79/100 and a GF Value™ of €1.28 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 616 Steel companies, Stanmore Resources ranks better than 83.93% on this metric.
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.
Stanmore Resources Operating Margin % Related Terms
Stanmore Resources Operating Margin % Historical Data
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The historical data trend for Stanmore 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.
FRA:S0D vs HCC, AMR, METC: Operating Margin % Comparison
For the Coking Coal subindustry, Stanmore 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.
Stanmore Resources Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Stanmore Resources's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Stanmore Resources'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.
Stanmore 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.
Stanmore Resources (FRA:S0D) has a Operating Margin % of 22.25% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Stanmore Resources and its competitors. This is 35% above median its historical median of 16.46. According to the industry distribution chart, Stanmore Resources ranks #99 out of 616 companies in the Steel industry, placing it in the top 16.1%.
Is Stanmore Resources' Operating Margin % too high?
Stanmore Resources' current Operating Margin % of 22.25% is 35% above median its 10-year median of 16.46. The Steel industry median Operating Margin % is 3.00. Stanmore Resources' value of 22.25% is 641.7% above this industry median. Based on the distribution chart, Stanmore Resources ranks #99 out of 616 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Stanmore Resources has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Stanmore Resources' Operating Margin % compare to HCC and AMR?
According to the Steel industry distribution chart, Stanmore Resources ranks #99 out of 616 companies for Operating Margin %. This places Stanmore Resources in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.00. Stanmore Resources' value of 22.25% is 641.7% above this benchmark. While the company's 10-year median is 16.46 vs. the industry median of 3.00, Stanmore Resources 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. Stanmore Resources's current Operating Margin % of 22.25% is 641.7% 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 Stanmore Resources 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. Stanmore Resources's current Operating Margin % is 22.25%, which is 35% above median its own 10-year median of 16.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Stanmore Resources stock overvalued right now?
Based on GuruFocus' analysis, Stanmore Resources (FRA:S0D) is currently considered Modestly Overvalued. The stock's GF Value™ is €1.28, compared to a current price of €1.42 — trading 10.9% above its estimated fair value. The current Operating Margin % is 22.25%, which is 35% above median its 10-year median of 16.46 and 641.7% above the Steel industry median of 3.00. Stanmore Resources' overall GF Score™ is 79/100 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 Stanmore Resources (FRA:S0D), the current Operating Margin % is 22.25% 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 Stanmore Resources (FRA:S0D) Overvalued in 2026?
Based on GuruFocus' analysis, Stanmore Resources stock appears to be overvalued.
The current stock price of €1.42 is trading 10.9% above its estimated GF Value™ of €1.28.
GuruFocus considers Stanmore Resources to be Modestly Overvalued.
Key valuation signals for FRA:S0D:
Operating Margin %: 22.25% (35% above median its 10-year median of 16.46)
GF Value™: €1.28 vs. price of €1.42 (10.9% above fair value)
Industry Position: 641.7% above the Steel median (#99 of 616)
No single metric tells the full story. See the FRA:S0D stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Stanmore Resources Ltd is an Australian resources company that is engaged in the exploration, development, production, and sale of metallurgical coal in Queensland, Australia with operations and exploration projects in the Bowen and Surat Basins. The company's portfolio of existing operations includes the Isaac Plains Complex in Queensland's Bowen Basin region, South Walker Creek, and the Poitrel open-cut coal mine. It also holds ownership interests in several other exploration projects, such as the Lilyvale project, Mackenzie, Lancewood, the Isaac Downs Extension, the Range, Belview, the Isaac Plains Underground, and the Clifford project. Geographically, the company derives maximum revenue from the sale of metallurgical coal in Asia, followed by Europe and South America.
79GF Score
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