Choppies EnterprisesJSE:CHP -6.92%41 Operating Margin % is 2.57% as of Dec. 2025, which is 45% below its 10-year median of 4.69. GuruFocus rates JSE:CHP with a GF Score™ of 41/100 and a GF Value™ of R0.83 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 310 Retail - Defensive companies, Choppies Enterprises ranks better than 50.32% 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.
Choppies Enterprises Operating Margin % Related Terms
Choppies Enterprises Operating Margin % Historical Data
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The historical data trend for Choppies Enterprises'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.
JSE:CHP vs KR, SFM, ACI: Operating Margin % Comparison
For the Grocery Stores subindustry, Choppies 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.
Choppies Enterprises Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Choppies Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Choppies Enterprises'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.
Choppies Enterprises's Operating Margin % for the fiscal year that ended in Jun. 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.
Choppies Enterprises (JSE:CHP) has a Operating Margin % of 2.57% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Choppies Enterprises and its competitors. This is 45% below median its historical median of 4.69. Over the past decade, Choppies Enterprises' Operating Margin % has ranged from 0.07 to 6.09. According to the industry distribution chart, Choppies Enterprises ranks #154 out of 310 companies in the Retail - Defensive industry, placing it in the top 49.7%.
Is Choppies Enterprises' Operating Margin % too high?
Choppies Enterprises' current Operating Margin % of 2.57% is 45% below median its 10-year median of 4.69. Over the past 10 years, this metric has ranged from a low of 0.07 to a high of 6.09. The Retail - Defensive industry median Operating Margin % is 3.28. Choppies Enterprises' value of 2.57% is 21.5% below this industry median. Based on the distribution chart, Choppies Enterprises ranks #154 out of 310 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Choppies Enterprises has a GF Score™ of 41/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Choppies Enterprises' Operating Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Choppies Enterprises ranks #154 out of 310 companies for Operating Margin %. This puts Choppies Enterprises in the upper half of its industry. The industry median Operating Margin % is 3.28. Choppies Enterprises' value of 2.57% is 21.5% below this benchmark. Historically, Choppies Enterprises' own Operating Margin % has ranged from 0.07 to 6.09 over the past decade. While the company's 10-year median is 4.69 vs. the industry median of 3.28, Choppies Enterprises has consistently been below 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 - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 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. Choppies Enterprises's current Operating Margin % of 2.57% is 21.5% below 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 Choppies Enterprises and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Choppies Enterprises's current Operating Margin % is 2.57%, which is 45% below median its own 10-year median of 4.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Choppies Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Choppies Enterprises (JSE:CHP) is currently considered Significantly Overvalued. The stock's GF Value™ is R0.83, compared to a current price of R1.48 — trading 78.3% above its estimated fair value. The current Operating Margin % is 2.57%, which is 45% below median its 10-year median of 4.69 and 21.5% below the Retail - Defensive industry median of 3.28. Choppies Enterprises' overall GF Score™ is 41/100 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 Choppies Enterprises (JSE:CHP), the current Operating Margin % is 2.57% 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 Choppies Enterprises (JSE:CHP) Overvalued in 2026?
Based on GuruFocus' analysis, Choppies Enterprises stock appears to be overvalued.
The current stock price of R1.48 is trading 78.3% above its estimated GF Value™ of R0.83.
GuruFocus considers Choppies Enterprises to be Significantly Overvalued.
Key valuation signals for JSE:CHP:
Operating Margin %: 2.57% (45% below median its 10-year median of 4.69)
GF Value™: R0.83 vs. price of R1.48 (78.3% above fair value)
Industry Position: 21.5% below the Retail - Defensive median (#154 of 310)
No single metric tells the full story. See the JSE:CHP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Choppies Enterprises Ltd operates a supermarket chain in Botswana. The company's supermarkets offer international food brands, fast-moving consumer goods products, and Choppies private label products. Its product offerings include groceries, fresh fruit and vegetables, bakery goods, butchery items, takeaways, and value-added financial services. The company's segments include Botswana, Zambia, Zimbabwe, Kamoso Liquor, Rest of Kamoso, and Namibia, with the majority of its revenue derived from Botswana.
41GF Score
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