Perfect Group International Holdings (HKSE:03326) 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.
Perfect Group International Holdings Operating Margin % Related Terms
Perfect Group 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.
Perfect Group International Holdings Operating Margin % Chart
For the Luxury Goods subindustry, Perfect Group 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.
Perfect Group International Holdings Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Perfect Group International Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Perfect Group International Holdings's Operating Margin % falls into.
Perfect Group 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.
* 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.
Perfect Group International Holdings (HKSE:03326) has a Operating Margin % of 11.51% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Perfect Group International Holdings and its competitors. This is 22% below median its historical median of 14.76. Over the past decade, Perfect Group International Holdings' Operating Margin % has ranged from 8.84 to 29.69.
Is Perfect Group International Holdings' Operating Margin % too high?
Perfect Group International Holdings' current Operating Margin % of 11.51% is 22% below median its 10-year median of 14.76. Over the past 10 years, this metric has ranged from a low of 8.84 to a high of 29.69. The Retail - Cyclical industry median Operating Margin % is 3.91. Perfect Group International Holdings' value of 11.51% is 194.8% above this industry median. Overall, Perfect Group International Holdings has a GF Score™ of 6/100, reflecting its overall financial health beyond just this single metric.
How does Perfect Group International Holdings' Operating Margin % compare to TPR?
Perfect Group International Holdings' Operating Margin % of 11.51% can be compared against companies in the Retail - Cyclical industry. The industry median Operating Margin % is 3.91. Perfect Group International Holdings' value of 11.51% is 194.8% above this benchmark. Historically, Perfect Group International Holdings' own Operating Margin % has ranged from 8.84 to 29.69 over the past decade. While the company's 10-year median is 14.76 vs. the industry median of 3.91, Perfect Group 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 3.91, 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. Perfect Group International Holdings's current Operating Margin % of 11.51% is 194.8% 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 Perfect Group International Holdings 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. Perfect Group International Holdings's current Operating Margin % is 11.51%, which is 22% below median its own 10-year median of 14.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Perfect Group International Holdings stock overvalued right now?
Perfect Group International Holdings (HKSE:03326) has a current Operating Margin % of 11.51%. The stock's GF Value™ is HK$0.13, compared to a current price of HK$0.25 — trading 90.8% above its estimated fair value. The current Operating Margin % is 11.51%, which is 22% below median its 10-year median of 14.76 and 194.8% above the Retail - Cyclical industry median of 3.91. Perfect Group International Holdings' overall GF Score™ is 6/100 with 11 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 Perfect Group International Holdings (HKSE:03326), the current Operating Margin % is 11.51% as of Jun. 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 Perfect Group International Holdings (HKSE:03326) Overvalued in 2026?
Based on GuruFocus' analysis, Perfect Group International Holdings stock appears to be overvalued.
The current stock price of HK$0.25 is trading 90.8% above its estimated GF Value™ of HK$0.13.
Key valuation signals for HKSE:03326:
Operating Margin %: 11.51% (22% below median its 10-year median of 14.76)
GF Value™: HK$0.13 vs. price of HK$0.25 (90.8% above fair value)
Industry Position: 194.8% above the Retail - Cyclical median
No single metric tells the full story. See the HKSE:03326 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Perfect Group International Holdings Business Description
Perfect Group International Holdings Ltd is engaged in the design, manufacture, and sales of jewelry products mounted with diamonds. The company has two reportable segments namely Manufacturing and sales of jewellery products, Property business, and Photovoltaic power generation business. Geographically, it generates the majority of its revenue from Hong Kong and has an operation in the PRC and Dubai. It offers products such as rings, earrings, pendants, bangles, necklaces, bracelets, and others.
6GF Score
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