Compagnie Financiere RichemontJSE:CFR +3.33%91 Operating Margin % is 19.32% as of Mar. 2026, which is 3% above its 10-year median of 18.70. GuruFocus rates JSE:CFR with a GF Score™ of 91/100 and a GF Value™ of R3,054.59 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Compagnie Financiere Richemont ranks better than 95.04% 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.
Compagnie Financiere Richemont Operating Margin % Related Terms
Compagnie Financiere Richemont 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.
JSE:CFR vs TPR, SIG, CPRI: Operating Margin % Comparison
For the Luxury Goods subindustry, Compagnie Financiere Richemont'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.
Compagnie Financiere Richemont Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Compagnie Financiere Richemont's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Compagnie Financiere Richemont'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.
* 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.
Compagnie Financiere Richemont (JSE:CFR) has a Operating Margin % of 19.32% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Compagnie Financiere Richemont and its competitors. This is near median its historical median of 18.70. Over the past decade, Compagnie Financiere Richemont's Operating Margin % has ranged from 10.65 to 25.21. According to the industry distribution chart, Compagnie Financiere Richemont ranks #56 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 5%.
Is Compagnie Financiere Richemont's Operating Margin % too high?
Compagnie Financiere Richemont's current Operating Margin % of 19.32% is near median its 10-year median of 18.70. Over the past 10 years, this metric has ranged from a low of 10.65 to a high of 25.21. The Retail - Cyclical industry median Operating Margin % is 3.91. Compagnie Financiere Richemont's value of 19.32% is 394.8% above this industry median. Based on the distribution chart, Compagnie Financiere Richemont ranks #56 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Compagnie Financiere Richemont has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Compagnie Financiere Richemont's Operating Margin % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Compagnie Financiere Richemont ranks #56 out of 1128 companies for Operating Margin %. This places Compagnie Financiere Richemont in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Compagnie Financiere Richemont's value of 19.32% is 394.8% above this benchmark. Historically, Compagnie Financiere Richemont's own Operating Margin % has ranged from 10.65 to 25.21 over the past decade. While the company's 10-year median is 18.70 vs. the industry median of 3.91, Compagnie Financiere Richemont 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. Compagnie Financiere Richemont's current Operating Margin % of 19.32% is 394.8% 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 Compagnie Financiere Richemont 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. Compagnie Financiere Richemont's current Operating Margin % is 19.32%, which is near median its own 10-year median of 18.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compagnie Financiere Richemont stock overvalued right now?
Based on GuruFocus' analysis, Compagnie Financiere Richemont (JSE:CFR) is currently considered Modestly Overvalued. The stock's GF Value™ is R3,054.59, compared to a current price of R3,773.49 — trading 23.5% above its estimated fair value. The current Operating Margin % is 19.32%, which is near median its 10-year median of 18.70 and 394.8% above the Retail - Cyclical industry median of 3.91. Compagnie Financiere Richemont's overall GF Score™ is 91/100 with 5 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 Compagnie Financiere Richemont (JSE:CFR), the current Operating Margin % is 19.32% as of Mar. 2026. 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 Compagnie Financiere Richemont (JSE:CFR) Overvalued in 2026?
Based on GuruFocus' analysis, Compagnie Financiere Richemont stock appears to be overvalued.
The current stock price of R3,773.49 is trading 23.5% above its estimated GF Value™ of R3,054.59.
GuruFocus considers Compagnie Financiere Richemont to be Modestly Overvalued.
Key valuation signals for JSE:CFR:
Operating Margin %: 19.32% (near median its 10-year median of 18.70)
GF Value™: R3,054.59 vs. price of R3,773.49 (23.5% above fair value)
Industry Position: 394.8% above the Retail - Cyclical median (#56 of 1128)
No single metric tells the full story. See the JSE:CFR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compagnie Financiere Richemont Business Description
Richemont is a luxury goods conglomerate with 20 brands. Jewelry and watch brands make up 87% of sales, but the group is also active in accessories, writing instruments, clothing, and online luxury retail. Richemont's Jewellery Maisons, including Cartier and Van Cleef & Arpels, account for over 70% of revenue and the vast majority of profits. Its other brands include Vacheron Constantin, Piaget, Jaeger-LeCoultre, IWC Schaffhausen, Lange & Soehne, Officine Panerai, Chloe, and Montblanc.
91GF Score
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