Nu-World HoldingsJSE:NWL 71 Operating Margin % is 4.48% as of Feb. 2026, which is 7% above its 10-year median of 4.19. GuruFocus rates JSE:NWL with a GF Score™ of 71/100 and a GF Value™ of R31.53 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,472 Hardware companies, Nu-World Holdings ranks worse than 50.12% 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.
Nu-World Holdings Operating Margin % Related Terms
Nu-World Holdings Operating Margin % Historical Data
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The historical data trend for Nu-World Holdings'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 Consumer Electronics subindustry, Nu-World 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.
Nu-World Holdings Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Nu-World Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nu-World 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.
Nu-World Holdings's Operating Margin % for the fiscal year that ended in Aug. 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.
Nu-World Holdings (JSE:NWL) has a Operating Margin % of 4.48% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nu-World Holdings and its competitors. This is near median its historical median of 4.19. According to the industry distribution chart, Nu-World Holdings ranks #1239 out of 2472 companies in the Hardware industry, placing it in the top 50.1%.
Is Nu-World Holdings' Operating Margin % too high?
Nu-World Holdings' current Operating Margin % of 4.48% is near median its 10-year median of 4.19. The Hardware industry median Operating Margin % is 3.81. Nu-World Holdings' value of 4.48% is 17.6% above this industry median. Based on the distribution chart, Nu-World Holdings ranks #1239 out of 2472 companies in the Hardware industry, which is below the industry midpoint. Overall, Nu-World Holdings has a GF Score™ of 71/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nu-World Holdings' Operating Margin % compare to AAPL?
According to the Hardware industry distribution chart, Nu-World Holdings ranks #1239 out of 2472 companies for Operating Margin %. This places Nu-World Holdings in the lower half of its industry. The industry median Operating Margin % is 3.81. Nu-World Holdings' value of 4.48% is 17.6% above this benchmark. While the company's 10-year median is 4.19 vs. the industry median of 3.81, Nu-World 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. Nu-World Holdings's current Operating Margin % of 4.48% is 17.6% 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 Nu-World Holdings and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nu-World Holdings's current Operating Margin % is 4.48%, which is near median its own 10-year median of 4.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nu-World Holdings stock overvalued right now?
Based on GuruFocus' analysis, Nu-World Holdings (JSE:NWL) is currently considered Modestly Undervalued. The stock's GF Value™ is R31.53, compared to a current price of R27.03 — trading 14.3% below its estimated fair value. The current Operating Margin % is 4.48%, which is near median its 10-year median of 4.19 and 17.6% above the Hardware industry median of 3.81. Nu-World Holdings' overall GF Score™ is 71/100 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 Nu-World Holdings (JSE:NWL), the current Operating Margin % is 4.48% as of Feb. 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 Nu-World Holdings (JSE:NWL) Overvalued in 2026?
Based on GuruFocus' analysis, Nu-World Holdings stock appears to be undervalued.
The current stock price of R27.03 is trading 14.3% below its estimated GF Value™ of R31.53.
GuruFocus considers Nu-World Holdings to be Modestly Undervalued.
Key valuation signals for JSE:NWL:
Operating Margin %: 4.48% (near median its 10-year median of 4.19)
GF Value™: R31.53 vs. price of R27.03 (14.3% below fair value)
Industry Position: 17.6% above the Hardware median (#1239 of 2472)
No single metric tells the full story. See the JSE:NWL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nu-World Holdings Ltd, along with its subsidiaries, is engaged in importing, manufacturing, assembling, marketing, and distributing branded consumer goods, including consumer electronics, high-technology, small electrical appliances, white goods, liquor, and furniture. It also manufactures kitchenware and Telefunken. The company operates its business in geographic segments that include South Africa, Hong Kong, Australia, and the United Arab Emirates. The South African segment generates maximum revenue for the company.
71GF Score
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