Pepkor HoldingsJSE:PPH -1.75%82 Operating Margin % is 10.68% as of Mar. 2026, which is 4% above its 10-year median of 10.26. GuruFocus rates JSE:PPH with a GF Score™ of 82/100 and a GF Value™ of R26.65 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Pepkor Holdings ranks better than 86.35% 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.
Pepkor Holdings Operating Margin % Related Terms
Pepkor Holdings Operating Margin % Historical Data
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The historical data trend for Pepkor 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 Department Stores subindustry, Pepkor 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.
Pepkor Holdings Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Pepkor Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pepkor 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.
Pepkor Holdings's Operating Margin % for the fiscal year that ended in Sep. 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.
Pepkor Holdings (JSE:PPH) has a Operating Margin % of 10.68% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pepkor Holdings and its competitors. This is near median its historical median of 10.26. Over the past decade, Pepkor Holdings' Operating Margin % has ranged from 8.03 to 15.85. According to the industry distribution chart, Pepkor Holdings ranks #154 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 13.7%.
Is Pepkor Holdings' Operating Margin % too high?
Pepkor Holdings' current Operating Margin % of 10.68% is near median its 10-year median of 10.26. Over the past 10 years, this metric has ranged from a low of 8.03 to a high of 15.85. The Retail - Cyclical industry median Operating Margin % is 3.91. Pepkor Holdings' value of 10.68% is 173.5% above this industry median. Based on the distribution chart, Pepkor Holdings ranks #154 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Pepkor Holdings has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Pepkor Holdings' Operating Margin % compare to DDS and M?
According to the Retail - Cyclical industry distribution chart, Pepkor Holdings ranks #154 out of 1128 companies for Operating Margin %. This places Pepkor Holdings in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Pepkor Holdings' value of 10.68% is 173.5% above this benchmark. Historically, Pepkor Holdings' own Operating Margin % has ranged from 8.03 to 15.85 over the past decade. While the company's 10-year median is 10.26 vs. the industry median of 3.91, Pepkor 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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. Pepkor Holdings's current Operating Margin % of 10.68% is 173.5% 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 Pepkor Holdings and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pepkor Holdings's current Operating Margin % is 10.68%, which is near median its own 10-year median of 10.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pepkor Holdings stock overvalued right now?
Based on GuruFocus' analysis, Pepkor Holdings (JSE:PPH) is currently considered Modestly Undervalued. The stock's GF Value™ is R26.65, compared to a current price of R21.93 — trading 17.7% below its estimated fair value. The current Operating Margin % is 10.68%, which is near median its 10-year median of 10.26 and 173.5% above the Retail - Cyclical industry median of 3.91. Pepkor Holdings' overall GF Score™ is 82/100 with 2 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 Pepkor Holdings (JSE:PPH), the current Operating Margin % is 10.68% as of Mar. 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 Pepkor Holdings (JSE:PPH) Overvalued in 2026?
Based on GuruFocus' analysis, Pepkor Holdings stock appears to be undervalued.
The current stock price of R21.93 is trading 17.7% below its estimated GF Value™ of R26.65.
GuruFocus considers Pepkor Holdings to be Modestly Undervalued.
Key valuation signals for JSE:PPH:
Operating Margin %: 10.68% (near median its 10-year median of 10.26)
GF Value™: R26.65 vs. price of R21.93 (17.7% below fair value)
Industry Position: 173.5% above the Retail - Cyclical median (#154 of 1128)
No single metric tells the full story. See the JSE:PPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pepkor Holdings Ltd is a South African retail investment company specializing in discount and value consumer goods. The company operates across three segments: i) Clothing and general merchandise: This segment includes all clothing, footwear and homeware (CFH) retail brands. ii) Furniture, appliances and electronics: This segment includes the Pepkor Lifestyle retail business. iii) FinTech: This segment provides Financial services including Lending, Insurance, etc. The company derives the majority of its revenue from the Clothing and general merchandise segment. Geographically, it generates the maximum revenue from South Africa.
82GF Score
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