Sephaku HoldingsJSE:SEP 84 Operating Margin % is 10.07% as of Sep. 2025, which is 81% above its 10-year median of 5.56. GuruFocus rates JSE:SEP with a GF Score™ of 84/100 and a GF Value™ of R1.73 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 404 Building Materials companies, Sephaku Holdings ranks better than 54.7% 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.
Sephaku Holdings Operating Margin % Related Terms
Sephaku Holdings Operating Margin % Historical Data
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The historical data trend for Sephaku 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.
JSE:SEP vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Sephaku 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.
Sephaku Holdings Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Sephaku Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sephaku 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.
Sephaku Holdings's Operating Margin % for the fiscal year that ended in Mar. 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.
Sephaku Holdings (JSE:SEP) has a Operating Margin % of 10.07% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sephaku Holdings and its competitors. This is 81% above median its historical median of 5.56. According to the industry distribution chart, Sephaku Holdings ranks #183 out of 404 companies in the Building Materials industry, placing it in the top 45.3%.
Is Sephaku Holdings' Operating Margin % too high?
Sephaku Holdings' current Operating Margin % of 10.07% is 81% above median its 10-year median of 5.56. The Building Materials industry median Operating Margin % is 7.65. Sephaku Holdings' value of 10.07% is 31.6% above this industry median. Based on the distribution chart, Sephaku Holdings ranks #183 out of 404 companies in the Building Materials industry, which is above the industry midpoint. Overall, Sephaku Holdings has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sephaku Holdings' Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Sephaku Holdings ranks #183 out of 404 companies for Operating Margin %. This puts Sephaku Holdings in the upper half of its industry. The industry median Operating Margin % is 7.65. Sephaku Holdings' value of 10.07% is 31.6% above this benchmark. While the company's 10-year median is 5.56 vs. the industry median of 7.65, Sephaku 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.65, based on 404 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. Sephaku Holdings's current Operating Margin % of 10.07% is 31.6% 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 Sephaku Holdings and its competitors. For the Building Materials industry, the median Operating Margin % is 7.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sephaku Holdings's current Operating Margin % is 10.07%, which is 81% above median its own 10-year median of 5.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sephaku Holdings stock overvalued right now?
Based on GuruFocus' analysis, Sephaku Holdings (JSE:SEP) is currently considered Modestly Overvalued. The stock's GF Value™ is R1.73, compared to a current price of R2.00 — trading 15.6% above its estimated fair value. The current Operating Margin % is 10.07%, which is 81% above median its 10-year median of 5.56 and 31.6% above the Building Materials industry median of 7.65. Sephaku Holdings' overall GF Score™ is 84/100 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 Sephaku Holdings (JSE:SEP), the current Operating Margin % is 10.07% as of Sep. 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 Sephaku Holdings (JSE:SEP) Overvalued in 2026?
Based on GuruFocus' analysis, Sephaku Holdings stock appears to be overvalued.
The current stock price of R2.00 is trading 15.6% above its estimated GF Value™ of R1.73.
GuruFocus considers Sephaku Holdings to be Modestly Overvalued.
Key valuation signals for JSE:SEP:
Operating Margin %: 10.07% (81% above median its 10-year median of 5.56)
GF Value™: R1.73 vs. price of R2.00 (15.6% above fair value)
Industry Position: 31.6% above the Building Materials median (#183 of 404)
No single metric tells the full story. See the JSE:SEP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sephaku Holdings Ltd is a construction materials company. It offers investors a portfolio of assets focused on the building and construction materials industry. The company comprises ready-mix concrete and head office as the two main segments. The ready-mix concrete segment represents the part of the business that manufactures and sells ready-mixed concrete through its subsidiaries in South Africa.
84GF Score
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