Northam Platinum HoldingsJSE:NPH +4.65%88 Operating Margin % is 25.15% as of Dec. 2025, which is 27% below its 10-year median of 34.44. GuruFocus rates JSE:NPH with a GF Score™ of 88/100 and a GF Value™ of R199.06 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 841 Metals & Mining companies, Northam Platinum Holdings ranks better than 70.51% 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.
Northam Platinum Holdings Operating Margin % Related Terms
Northam Platinum Holdings 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.
For the Other Precious Metals & Mining subindustry, Northam Platinum Holdings'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.
Northam Platinum Holdings Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Northam Platinum Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Northam Platinum Holdings'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.
Northam Platinum Holdings'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.
Northam Platinum Holdings (JSE:NPH) has a Operating Margin % of 25.15% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Northam Platinum Holdings and its competitors. This is 27% below median its historical median of 34.44. Over the past decade, Northam Platinum Holdings' Operating Margin % has ranged from 10.64 to 49.40. According to the industry distribution chart, Northam Platinum Holdings ranks #248 out of 841 companies in the Metals & Mining industry, placing it in the top 29.5%.
Is Northam Platinum Holdings' Operating Margin % too high?
Northam Platinum Holdings' current Operating Margin % of 25.15% is 27% below median its 10-year median of 34.44. Over the past 10 years, this metric has ranged from a low of 10.64 to a high of 49.40. The Metals & Mining industry median Operating Margin % is 5.79. Northam Platinum Holdings' value of 25.15% is 334.4% above this industry median. Based on the distribution chart, Northam Platinum Holdings ranks #248 out of 841 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, Northam Platinum Holdings has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Northam Platinum Holdings' Operating Margin % compare to HL?
According to the Metals & Mining industry distribution chart, Northam Platinum Holdings ranks #248 out of 841 companies for Operating Margin %. This puts Northam Platinum Holdings in the upper half of its industry. The industry median Operating Margin % is 5.79. Northam Platinum Holdings' value of 25.15% is 334.4% above this benchmark. Historically, Northam Platinum Holdings' own Operating Margin % has ranged from 10.64 to 49.40 over the past decade. While the company's 10-year median is 34.44 vs. the industry median of 5.79, Northam Platinum Holdings 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 5.79, 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. Northam Platinum Holdings's current Operating Margin % of 25.15% is 334.4% 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 Northam Platinum Holdings and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northam Platinum Holdings's current Operating Margin % is 25.15%, which is 27% below median its own 10-year median of 34.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northam Platinum Holdings stock overvalued right now?
Based on GuruFocus' analysis, Northam Platinum Holdings (JSE:NPH) is currently considered Modestly Overvalued. The stock's GF Value™ is R199.06, compared to a current price of R243.22 — trading 22.2% above its estimated fair value. The current Operating Margin % is 25.15%, which is 27% below median its 10-year median of 34.44 and 334.4% above the Metals & Mining industry median of 5.79. Northam Platinum Holdings' overall GF Score™ is 88/100 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 Northam Platinum Holdings (JSE:NPH), the current Operating Margin % is 25.15% 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 Northam Platinum Holdings (JSE:NPH) Overvalued in 2026?
Based on GuruFocus' analysis, Northam Platinum Holdings stock appears to be overvalued.
The current stock price of R243.22 is trading 22.2% above its estimated GF Value™ of R199.06.
GuruFocus considers Northam Platinum Holdings to be Modestly Overvalued.
Key valuation signals for JSE:NPH:
Operating Margin %: 25.15% (27% below median its 10-year median of 34.44)
GF Value™: R199.06 vs. price of R243.22 (22.2% above fair value)
Industry Position: 334.4% above the Metals & Mining median (#248 of 841)
No single metric tells the full story. See the JSE:NPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northam Platinum Holdings Ltd is an integrated producer of platinum group metals. Its primary joint products are the platinum, palladium, rhodium and gold (4E). The primary consumers of these metals are the motor manufacturing industry, the jewelry industry, and other industrial sectors. Its segments include Northam Holdings, Zondereinde mine (being Northam Platinum), Booysendal mine, Eland mine and the U.S recycling operations. The maximum revenue for the company is generated from its Zondereinde mine segment.
88GF Score
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