Salungano GroupJSE:SLG -14.78%26 Operating Margin % is 10.81% as of Sep. 2025, which is 180% above its 10-year median of 3.86. GuruFocus rates JSE:SLG with a GF Score™ of 26/100 and a GF Value™ of R0.62 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 130 Other Energy Sources companies, Salungano Group ranks better than 54.62% on this metric.
Salungano Group (JSE:SLG) Operating Margin % Explanation
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.
Salungano Group Operating Margin % Related Terms
Salungano Group Operating Margin % Historical Data
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The historical data trend for Salungano Group'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 Thermal Coal subindustry, Salungano Group'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.
Salungano Group Operating Margin % vs Other Energy Sources Industry
For the Other Energy Sources industry and Energy sector, Salungano Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Salungano Group'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.
Salungano Group'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.
Salungano Group (JSE:SLG) has a Operating Margin % of 10.81% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Salungano Group and its competitors. This is 180% above median its historical median of 3.86. According to the industry distribution chart, Salungano Group ranks #59 out of 130 companies in the Other Energy Sources industry, placing it in the top 45.4%.
Is Salungano Group's Operating Margin % too high?
Salungano Group's current Operating Margin % of 10.81% is 180% above median its 10-year median of 3.86. The Other Energy Sources industry median Operating Margin % is 4.57. Salungano Group's value of 10.81% is 136.5% above this industry median. Based on the distribution chart, Salungano Group ranks #59 out of 130 companies in the Other Energy Sources industry, which is above the industry midpoint. Overall, Salungano Group has a GF Score™ of 26/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Salungano Group's Operating Margin % compare to CNR?
According to the Other Energy Sources industry distribution chart, Salungano Group ranks #59 out of 130 companies for Operating Margin %. This puts Salungano Group in the upper half of its industry. The industry median Operating Margin % is 4.57. Salungano Group's value of 10.81% is 136.5% above this benchmark. While the company's 10-year median is 3.86 vs. the industry median of 4.57, Salungano Group 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 an Other Energy Sources company?
The median Operating Margin % among Other Energy Sources companies is 4.57, based on 130 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. Salungano Group's current Operating Margin % of 10.81% is 136.5% 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 Salungano Group and its competitors. For the Other Energy Sources industry, the median Operating Margin % is 4.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Salungano Group's current Operating Margin % is 10.81%, which is 180% above median its own 10-year median of 3.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Salungano Group stock overvalued right now?
Based on GuruFocus' analysis, Salungano Group (JSE:SLG) is currently considered Significantly Overvalued. The stock's GF Value™ is R0.62, compared to a current price of R0.98 — trading 58.1% above its estimated fair value. The current Operating Margin % is 10.81%, which is 180% above median its 10-year median of 3.86 and 136.5% above the Other Energy Sources industry median of 4.57. Salungano Group's overall GF Score™ is 26/100 with 6 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 Salungano Group (JSE:SLG), the current Operating Margin % is 10.81% 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 Salungano Group (JSE:SLG) Overvalued in 2026?
Based on GuruFocus' analysis, Salungano Group stock appears to be overvalued.
The current stock price of R0.98 is trading 58.1% above its estimated GF Value™ of R0.62.
GuruFocus considers Salungano Group to be Significantly Overvalued.
Key valuation signals for JSE:SLG:
Operating Margin %: 10.81% (180% above median its 10-year median of 3.86)
GF Value™: R0.62 vs. price of R0.98 (58.1% above fair value)
Industry Position: 136.5% above the Other Energy Sources median (#59 of 130)
No single metric tells the full story. See the JSE:SLG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Salungano Group Ltd is a South African firm mainly engaged in the mining, processing, sale, and distribution of thermal coal. Along with its subsidiaries, it operates in the following reportable segments: Mining, Trading, Property rental and other, and Investment holding. The majority of its revenue is generated from the Mining segment, which is involved in the exploration, beneficiation, and mining of bituminous coal. The mining operations of the Group are carried out at Elandspruit, Khanyisa, Vanggatfontein, Arnot, and Moabsvelden mining complexes. The Trading segment buys and sells coal to inland customers, and the property rental segment rents property to other segments within the group.
26GF Score
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