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Merafe ResourcesJSE:MRF 84 Operating Margin % is 20.20% as of Jun. 2026, which is 30% above its 10-year median of 15.52. GuruFocus rates JSE:MRF with a GF Score™ of 84/100 and a GF Value™ of R1.09 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 841 Metals & Mining companies, Merafe Resources ranks better than 59.22% 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.
Merafe Resources Operating Margin % Related Terms
Merafe Resources Operating Margin % Historical Data
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The historical data trend for Merafe Resources'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.
For the Other Industrial Metals & Mining subindustry, Merafe Resources'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.
Merafe Resources Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Merafe Resources's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Merafe Resources'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.
Merafe Resources'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.
Merafe Resources (JSE:MRF) has a Operating Margin % of 20.20% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Merafe Resources and its competitors. This is 30% above median its historical median of 15.52. According to the industry distribution chart, Merafe Resources ranks #343 out of 841 companies in the Metals & Mining industry, placing it in the top 40.8%.
Is Merafe Resources' Operating Margin % too high?
Merafe Resources' current Operating Margin % of 20.20% is 30% above median its 10-year median of 15.52. The Metals & Mining industry median Operating Margin % is 6.26. Merafe Resources' value of 20.20% is 222.7% above this industry median. Based on the distribution chart, Merafe Resources ranks #343 out of 841 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Merafe Resources has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merafe Resources' Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Merafe Resources ranks #343 out of 841 companies for Operating Margin %. This puts Merafe Resources in the upper half of its industry. The industry median Operating Margin % is 6.26. Merafe Resources' value of 20.20% is 222.7% above this benchmark. While the company's 10-year median is 15.52 vs. the industry median of 6.26, Merafe Resources 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 6.26, based on 841 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. Merafe Resources's current Operating Margin % of 20.20% is 222.7% 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 Merafe Resources and its competitors. For the Metals & Mining industry, the median Operating Margin % is 6.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merafe Resources's current Operating Margin % is 20.20%, which is 30% above median its own 10-year median of 15.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merafe Resources stock overvalued right now?
Based on GuruFocus' analysis, Merafe Resources (JSE:MRF) is currently considered Significantly Overvalued. The stock's GF Value™ is R1.09, compared to a current price of R1.45 — trading 33% above its estimated fair value. The current Operating Margin % is 20.20%, which is 30% above median its 10-year median of 15.52 and 222.7% above the Metals & Mining industry median of 6.26. Merafe Resources' overall GF Score™ is 84/100 with 7 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 Merafe Resources (JSE:MRF), the current Operating Margin % is 20.20% as of Jun. 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 Merafe Resources (JSE:MRF) Overvalued in 2026?
Based on GuruFocus' analysis, Merafe Resources stock appears to be overvalued.
The current stock price of R1.45 is trading 33% above its estimated GF Value™ of R1.09.
GuruFocus considers Merafe Resources to be Significantly Overvalued.
Key valuation signals for JSE:MRF:
Operating Margin %: 20.20% (30% above median its 10-year median of 15.52)
GF Value™: R1.09 vs. price of R1.45 (33% above fair value)
Industry Position: 222.7% above the Metals & Mining median (#343 of 841)
No single metric tells the full story. See the JSE:MRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merafe Resources Ltd through its wholly-owned subsidiary, Merafe Ferrochrome and Mining Proprietary Limited, participates in chrome mining and the beneficiation of chrome ore into ferrochrome. The Glencore-Merafe Chrome Venture (Venture) operates five ferrochrome smelters, twenty-two ferrochrome furnaces, and nine mines, situated in the North-West, Limpopo, and Mpumalanga provinces of South Africa. The company has operating mines namel Marikana West; and Kroondal Gemini. The Group has one reportable segment being the mining and beneficiation of chrome ore into ferrochrome and associated minerals. Geographically, it has its presence in Africa, Americas, Asia, China, Indonesia, Other Asia, and Europe.
84GF Score
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