African And Overseas Enterprises Ltd has never been profitable in the past 3 years. It lost money every year.
African And Overseas Enterprises (JSE:AON) 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.
African And Overseas Enterprises Operating Margin % Related Terms
African And Overseas Enterprises 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.
African And Overseas Enterprises Operating Margin % Chart
JSE:AON vs TJX, ROST, BURL: Operating Margin % Comparison
For the Apparel Retail subindustry, African And Overseas Enterprises'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.
African And Overseas Enterprises Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, African And Overseas Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where African And Overseas Enterprises's Operating Margin % falls into.
African And Overseas Enterprises 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.
African And Overseas Enterprises (JSE:AON) has a Operating Margin % of 6.53% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on African And Overseas Enterprises and its competitors. According to the industry distribution chart, African And Overseas Enterprises ranks #1052 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 93.3%.
Is African And Overseas Enterprises' Operating Margin % too high?
African And Overseas Enterprises' current Operating Margin % is 6.53%. The Retail - Cyclical industry median Operating Margin % is 3.91. African And Overseas Enterprises' value of 6.53% is 67.2% above this industry median. Based on the distribution chart, African And Overseas Enterprises ranks #1052 out of 1128 companies in the Retail - Cyclical industry, which is in the bottom quartile relative to peers. Overall, African And Overseas Enterprises has a GF Score™ of 46/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does African And Overseas Enterprises' Operating Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, African And Overseas Enterprises ranks #1052 out of 1128 companies for Operating Margin %. This places African And Overseas Enterprises in the lower half of its industry. The industry median Operating Margin % is 3.91. African And Overseas Enterprises' value of 6.53% is 67.2% above this benchmark. 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. African And Overseas Enterprises's current Operating Margin % of 6.53% is 67.2% 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 African And Overseas Enterprises 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. African And Overseas Enterprises's current Operating Margin % is 6.53%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is African And Overseas Enterprises stock overvalued right now?
Based on GuruFocus' analysis, African And Overseas Enterprises (JSE:AON) is currently considered Modestly Overvalued. The stock's GF Value™ is R12.26, compared to a current price of R13.81 — trading 12.6% above its estimated fair value. The current Operating Margin % is 6.53% and 67.2% above the Retail - Cyclical industry median of 3.91. African And Overseas Enterprises' overall GF Score™ is 46/100 with 8 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 African And Overseas Enterprises (JSE:AON), the current Operating Margin % is 6.53% 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 African And Overseas Enterprises (JSE:AON) Overvalued in 2026?
Based on GuruFocus' analysis, African And Overseas Enterprises stock appears to be overvalued.
The current stock price of R13.81 is trading 12.6% above its estimated GF Value™ of R12.26.
GuruFocus considers African And Overseas Enterprises to be Modestly Overvalued.
Key valuation signals for JSE:AON:
Operating Margin %: 6.53%
GF Value™: R12.26 vs. price of R13.81 (12.6% above fair value)
Industry Position: 67.2% above the Retail - Cyclical median (#1052 of 1128)
No single metric tells the full story. See the JSE:AON stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
African And Overseas Enterprises Business Description
African And Overseas Enterprises Ltd is an investment holding company. The company operates in six segments: Retail division comprises the retailing of fashion apparel through Queenspark stores in South Africa. Property division comprises of the group's property portfolio based in Cape Town which includes both investment and owner-occupied properties.; Water infrastructure segment comprises an indirect investment made in a private water and wastewater utility group operating in the South African provinces, Media and broadcasting comprises the provision of media and satellite equipment and services through Telemedia, and the Group Services division manages the corporate responsibility and includes corporate costs and Technology segment. The Retail Segment derives maximum revenue.
46GF Score
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