Emperor Watch & JewelleryHKSE:00887 +2.00%70 Operating Margin % is 12.16% as of Dec. 2025, which is 83% above its 10-year median of 6.64. GuruFocus rates HKSE:00887 with a GF Score™ of 70/100 and a GF Value™ of HK$0.24 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,120 Retail - Cyclical companies, Emperor Watch & Jewellery ranks better than 79.37% on this metric.
Emperor Watch & Jewellery Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Emperor Watch & Jewellery's Operating Margin % or its related term are showing as below:
HKSE:00887'
s Operating Margin % Range Over the Past 10 Years
Min: -1.81 Med: 6.64 Max: 10.62
Current: 10.62
HKSE:00887's Operating Margin % is ranked better than 79.37% of 1120
companies
in the Retail - Cyclical industry
Industry Median: 3.925
vs HKSE:00887: 10.62
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.
Emperor Watch & Jewellery Operating Margin % Related Terms
Emperor Watch & Jewellery 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.
For the Luxury Goods subindustry, Emperor Watch & Jewellery'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.
Emperor Watch & Jewellery Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Emperor Watch & Jewellery's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Emperor Watch & Jewellery'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.
Emperor Watch & Jewellery'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.
Emperor Watch & Jewellery (HKSE:00887) has a Operating Margin % of 12.16% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Emperor Watch & Jewellery and its competitors. This is 83% above median its historical median of 6.64. According to the industry distribution chart, Emperor Watch & Jewellery ranks #231 out of 1120 companies in the Retail - Cyclical industry, placing it in the top 20.6%.
Is Emperor Watch & Jewellery's Operating Margin % too high?
Emperor Watch & Jewellery's current Operating Margin % of 12.16% is 83% above median its 10-year median of 6.64. The Retail - Cyclical industry median Operating Margin % is 3.93. Emperor Watch & Jewellery's value of 12.16% is 209.8% above this industry median. Based on the distribution chart, Emperor Watch & Jewellery ranks #231 out of 1120 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Emperor Watch & Jewellery has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Emperor Watch & Jewellery's Operating Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Emperor Watch & Jewellery ranks #231 out of 1120 companies for Operating Margin %. This places Emperor Watch & Jewellery in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.93. Emperor Watch & Jewellery's value of 12.16% is 209.8% above this benchmark. While the company's 10-year median is 6.64 vs. the industry median of 3.93, Emperor Watch & Jewellery 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 3.93, based on 1,120 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. Emperor Watch & Jewellery's current Operating Margin % of 12.16% is 209.8% 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 Emperor Watch & Jewellery and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Emperor Watch & Jewellery's current Operating Margin % is 12.16%, which is 83% above median its own 10-year median of 6.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Emperor Watch & Jewellery stock overvalued right now?
Based on GuruFocus' analysis, Emperor Watch & Jewellery (HKSE:00887) is currently considered Fairly Valued. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.26 — trading 6.3% above its estimated fair value. The current Operating Margin % is 12.16%, which is 83% above median its 10-year median of 6.64 and 209.8% above the Retail - Cyclical industry median of 3.93. Emperor Watch & Jewellery's overall GF Score™ is 70/100 with 3 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 Emperor Watch & Jewellery (HKSE:00887), the current Operating Margin % is 12.16% 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 Emperor Watch & Jewellery (HKSE:00887) Overvalued in 2026?
Based on GuruFocus' analysis, Emperor Watch & Jewellery stock appears to be overvalued.
The current stock price of HK$0.26 is trading 6.3% above its estimated GF Value™ of HK$0.24.
GuruFocus considers Emperor Watch & Jewellery to be Fairly Valued.
Key valuation signals for HKSE:00887:
Operating Margin %: 12.16% (83% above median its 10-year median of 6.64)
GF Value™: HK$0.24 vs. price of HK$0.26 (6.3% above fair value)
Industry Position: 209.8% above the Retail - Cyclical median (#231 of 1120)
No single metric tells the full story. See the HKSE:00887 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Emperor Watch & Jewellery Ltd is a retailer of European-made internationally renowned watches, together with self-designed fine jewellery products under its brand, Emperor Jewellery. The group has extensive retail networks in Hong Kong, Macau, Mainland China, Malaysia, and Singapore. Its wristwatch brands include Piguet, Baume & Mercier, Cartier, Jaeger-LeCoultre, Rolex among others. The target customers range from middle to high-income groups world-wide. The majority of the revenue is mainly derived from sales of watches and jewellery in Hong Kong.
70GF Score
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