We Buy Cars HoldingJSE:WBC -1.74%18 Operating Margin % is 4.90% as of Mar. 2026, which is 4% below its 10-year median of 5.13. GuruFocus rates JSE:WBC with a GF Score™ of 18/100. Among 1,325 Vehicles & Parts companies, We Buy Cars Holding ranks worse than 52.15% on this metric.
We Buy Cars Holding (JSE:WBC) 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.
We Buy Cars Holding Operating Margin % Related Terms
We Buy Cars Holding Operating Margin % Historical Data
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The historical data trend for We Buy Cars Holding'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:WBC vs CVNA, PAG, ALTB: Operating Margin % Comparison
For the Auto & Truck Dealerships subindustry, We Buy Cars Holding'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.
We Buy Cars Holding Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, We Buy Cars Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where We Buy Cars Holding's Operating Margin % falls into.
We Buy Cars Holding 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.
We Buy Cars Holding'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.
We Buy Cars Holding (JSE:WBC) has a Operating Margin % of 4.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on We Buy Cars Holding and its competitors. This is near median its historical median of 5.13. Over the past decade, We Buy Cars Holding's Operating Margin % has ranged from 4.61 to 5.19. According to the industry distribution chart, We Buy Cars Holding ranks #691 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 52.2%.
Is We Buy Cars Holding's Operating Margin % too high?
We Buy Cars Holding's current Operating Margin % of 4.90% is near median its 10-year median of 5.13. Over the past 10 years, this metric has ranged from a low of 4.61 to a high of 5.19. The Vehicles & Parts industry median Operating Margin % is 4.86. We Buy Cars Holding's value of 4.90% is 0.8% above this industry median. Based on the distribution chart, We Buy Cars Holding ranks #691 out of 1325 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, We Buy Cars Holding has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does We Buy Cars Holding's Operating Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, We Buy Cars Holding ranks #691 out of 1325 companies for Operating Margin %. This places We Buy Cars Holding in the lower half of its industry. The industry median Operating Margin % is 4.86. We Buy Cars Holding's value of 4.90% is 0.8% above this benchmark. Historically, We Buy Cars Holding's own Operating Margin % has ranged from 4.61 to 5.19 over the past decade. While the company's 10-year median is 5.13 vs. the industry median of 4.86, We Buy Cars Holding 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. We Buy Cars Holding's current Operating Margin % of 4.90% is 0.8% 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 We Buy Cars Holding and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. We Buy Cars Holding's current Operating Margin % is 4.90%, which is near median its own 10-year median of 5.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is We Buy Cars Holding stock overvalued right now?
We Buy Cars Holding (JSE:WBC) has a current Operating Margin % of 4.90%. The current Operating Margin % is 4.90%, which is near median its 10-year median of 5.13 and 0.8% above the Vehicles & Parts industry median of 4.86. We Buy Cars Holding's overall GF Score™ is 18/100. 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 We Buy Cars Holding (JSE:WBC), the current Operating Margin % is 4.90% 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.
We Buy Cars Holding Ltd is an automotive retailer focused on buying, reconditioning, and retail sales through both physical supermarkets and its digital platforms. The company's two reportable segments are: i) Buyer, distributor and retailer of pre-owned motor vehicles with the attendant sale of finance and insurance products and other ancillary products. ii) Property rental: Rental of warehouses to group companies. The majority of the company's revenue is derived from the Buyer, distributor and retailer of pre-owned motor vehicles segment.
18GF Score
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