South Ocean HoldingsJSE:SOH +2.04%50 Operating Margin % is 1.32% as of Dec. 2025, which is 36% below its 10-year median of 2.05. GuruFocus rates JSE:SOH with a GF Score™ of 50/100 and a GF Value™ of R1.53 (Possible Value Trap). The stock has 9 warning signs investors should review. Among 3,031 Industrial Products companies, South Ocean Holdings ranks worse than 77.96% on this metric.
South Ocean Holdings Ltd has recorded a loss in operating income at least once over the past 3 years.
South Ocean Holdings (JSE:SOH) 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.
South Ocean Holdings Operating Margin % Related Terms
South Ocean Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for South Ocean 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:SOH vs VRT, BE, HUBB: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, South Ocean 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.
South Ocean Holdings Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, South Ocean Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where South Ocean Holdings's Operating Margin % falls into.
South Ocean Holdings Operating Margin % Calculation
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.
South Ocean Holdings's Operating Margin % for the fiscal year that ended in Dec. 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.
South Ocean Holdings (JSE:SOH) has a Operating Margin % of 1.32% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on South Ocean Holdings and its competitors. This is 36% below median its historical median of 2.05. According to the industry distribution chart, South Ocean Holdings ranks #2363 out of 3031 companies in the Industrial Products industry, placing it in the top 78%.
Is South Ocean Holdings' Operating Margin % too high?
South Ocean Holdings' current Operating Margin % of 1.32% is 36% below median its 10-year median of 2.05. The Industrial Products industry median Operating Margin % is 6.53. South Ocean Holdings' value of 1.32% is 79.8% below this industry median. Based on the distribution chart, South Ocean Holdings ranks #2363 out of 3031 companies in the Industrial Products industry, which is in the bottom quartile relative to peers. Overall, South Ocean Holdings has a GF Score™ of 50/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does South Ocean Holdings' Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, South Ocean Holdings ranks #2363 out of 3031 companies for Operating Margin %. This places South Ocean Holdings in the lower half of its industry. The industry median Operating Margin % is 6.53. South Ocean Holdings' value of 1.32% is 79.8% below this benchmark. While the company's 10-year median is 2.05 vs. the industry median of 6.53, South Ocean Holdings has consistently been below 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,031 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. South Ocean Holdings's current Operating Margin % of 1.32% is 79.8% below 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 South Ocean Holdings and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South Ocean Holdings's current Operating Margin % is 1.32%, which is 36% below median its own 10-year median of 2.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South Ocean Holdings stock overvalued right now?
Based on GuruFocus' analysis, South Ocean Holdings (JSE:SOH) is currently considered Possible Value Trap. The stock's GF Value™ is R1.53, compared to a current price of R1.00 — trading 34.6% below its estimated fair value. The current Operating Margin % is 1.32%, which is 36% below median its 10-year median of 2.05 and 79.8% below the Industrial Products industry median of 6.53. South Ocean Holdings' overall GF Score™ is 50/100 with 9 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 South Ocean Holdings (JSE:SOH), the current Operating Margin % is 1.32% 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 South Ocean Holdings (JSE:SOH) Overvalued in 2026?
Based on GuruFocus' analysis, South Ocean Holdings stock appears to be undervalued.
The current stock price of R1.00 is trading 34.6% below its estimated GF Value™ of R1.53.
GuruFocus considers South Ocean Holdings to be Possible Value Trap.
Key valuation signals for JSE:SOH:
Operating Margin %: 1.32% (36% below median its 10-year median of 2.05)
GF Value™: R1.53 vs. price of R1.00 (34.6% below fair value)
Industry Position: 79.8% below the Industrial Products median (#2363 of 3031)
No single metric tells the full story. See the JSE:SOH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
South Ocean Holdings Ltd is an investment holding company. The Company through its subsidiaries manufactures electrical wires, imports and distributes electrical accessories, general-purpose insulated wire, a range of flexible conductors, steel wire armored cables, flat-twin and earth cables, aluminum conductor steel reinforced (ACSR) cables, aerial bundle conductors (ABC) and surface wire investment company and light fittings assembly. The operating segments of the company include Electrical cable manufacturing; and Property investments. The company earns maximum revenue from Electrical cable manufacturing segment which consists manufacturing and distribution of electric wire. The group operates in South Africa.
50GF Score
Get the complete analysis for JSE:SOH
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
JSE:SOH has been successfully added to your 
