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.
MTN Zakhele Futhi (RF) Operating Margin % Related Terms
MTN Zakhele Futhi (RF) Operating Margin % Historical Data
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The historical data trend for MTN Zakhele Futhi (RF)'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:MTNZF vs XXI, APAD, CCCX: Operating Margin % Comparison
For the Shell Companies subindustry, MTN Zakhele Futhi (RF)'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.
MTN Zakhele Futhi (RF) Operating Margin % vs Diversified Financial Services Industry
For the Diversified Financial Services industry and Financial Services sector, MTN Zakhele Futhi (RF)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where MTN Zakhele Futhi (RF)'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.
MTN Zakhele Futhi (RF)'s Operating Margin % for the fiscal year that ended in Dec. 2024 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.
MTN Zakhele Futhi (RF) (JSE:MTNZF) has a Operating Margin % of 92.96% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on MTN Zakhele Futhi (RF) and its competitors. This is near median its historical median of 93.24. Over the past decade, MTN Zakhele Futhi (RF)'s Operating Margin % has ranged from 87.21 to 97.35.
Is MTN Zakhele Futhi (RF)'s Operating Margin % too high?
MTN Zakhele Futhi (RF)'s current Operating Margin % of 92.96% is near median its 10-year median of 93.24. Over the past 10 years, this metric has ranged from a low of 87.21 to a high of 97.35. The Diversified Financial Services industry median Operating Margin % is 6.44. MTN Zakhele Futhi (RF)'s value of 92.96% is 1343.5% above this industry median. Overall, MTN Zakhele Futhi (RF) has a GF Score™ of 34/100, reflecting its overall financial health beyond just this single metric.
How does MTN Zakhele Futhi (RF)'s Operating Margin % compare to XXI and APAD?
MTN Zakhele Futhi (RF)'s Operating Margin % of 92.96% can be compared against companies in the Diversified Financial Services industry. The industry median Operating Margin % is 6.44. MTN Zakhele Futhi (RF)'s value of 92.96% is 1343.5% above this benchmark. Historically, MTN Zakhele Futhi (RF)'s own Operating Margin % has ranged from 87.21 to 97.35 over the past decade. While the company's 10-year median is 93.24 vs. the industry median of 6.44, MTN Zakhele Futhi (RF) 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 Diversified Financial Services company?
The median Operating Margin % among Diversified Financial Services companies is 6.44, based on 87 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. MTN Zakhele Futhi (RF)'s current Operating Margin % of 92.96% is 1343.5% 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 MTN Zakhele Futhi (RF) and its competitors. For the Diversified Financial Services industry, the median Operating Margin % is 6.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MTN Zakhele Futhi (RF)'s current Operating Margin % is 92.96%, which is near median its own 10-year median of 93.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MTN Zakhele Futhi (RF) stock overvalued right now?
MTN Zakhele Futhi (RF) (JSE:MTNZF) has a current Operating Margin % of 92.96%. The stock's GF Value™ is R17.15, compared to a current price of R0.20 — trading 98.8% below its estimated fair value. The current Operating Margin % is 92.96%, which is near median its 10-year median of 93.24 and 1343.5% above the Diversified Financial Services industry median of 6.44. MTN Zakhele Futhi (RF)'s overall GF Score™ is 34/100 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 MTN Zakhele Futhi (RF) (JSE:MTNZF), the current Operating Margin % is 92.96% 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 MTN Zakhele Futhi (RF) (JSE:MTNZF) Overvalued in 2026?
Based on GuruFocus' analysis, MTN Zakhele Futhi (RF) stock appears to be undervalued.
The current stock price of R0.20 is trading 98.8% below its estimated GF Value™ of R17.15.
Key valuation signals for JSE:MTNZF:
Operating Margin %: 92.96% (near median its 10-year median of 93.24)
GF Value™: R17.15 vs. price of R0.20 (98.8% below fair value)
Industry Position: 1343.5% above the Diversified Financial Services median
No single metric tells the full story. See the JSE:MTNZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MTN Zakhele Futhi (RF) Ltd is an investment company formed as a special purpose investment vehicle to facilitate the implementation of a Broad-Based Black Economic Empowerment. The company is engaged in acquiring and holding shares in MTN Group on behalf of the participating black public.
34GF Score
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