Kesko OyjKKOYY 78 Operating Margin % is 3.19% as of Mar. 2026, which is 26% below its 10-year median of 4.30. GuruFocus rates KKOYY with a GF Score™ of 78/100 and a GF Value™ of $11.43 (Fairly Valued). The stock has 7 warning signs investors should review. Among 310 Retail - Defensive companies, Kesko Oyj ranks better than 67.42% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Kesko Oyj's Operating Income for the
three
months ended in Mar. 2026 was $112 Mil. Kesko Oyj's Revenue for the
three
months ended in Mar. 2026 was $3,502 Mil. Therefore, Kesko Oyj's Operating Margin % for the quarter that ended in Mar. 2026 was 3.19%.
Warning Sign:
Kesko Oyj operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.
The historical rank and industry rank for Kesko Oyj's Operating Margin % or its related term are showing as below:
KKOYY'
s Operating Margin % Range Over the Past 10 Years
Min: 1.62 Med: 4.3 Max: 6.3
Current: 4.88
KKOYY's Operating Margin % is ranked better than 67.42% of 310
companies
in the Retail - Defensive industry
Industry Median: 3.275
vs KKOYY: 4.88
Kesko Oyj's 5-Year Average Operating Margin % Growth Rate was -4.50% per year.
Kesko Oyj's Operating Income for the
three
months ended in Mar. 2026 was $112 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $721 Mil.
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.
Kesko Oyj Operating Margin % Related Terms
Kesko Oyj Operating Margin % Historical Data
* Premium members only.
The historical data trend for Kesko Oyj'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.
KKOYY vs KR, SFM, ACI: Operating Margin % Comparison
For the Grocery Stores subindustry, Kesko Oyj'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.
Kesko Oyj Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Kesko Oyj's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kesko Oyj'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.
Kesko Oyj'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.
Kesko Oyj (KKOYY) has a Operating Margin % of 3.19% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Kesko Oyj and its competitors. This is 26% below median its historical median of 4.30. Over the past decade, Kesko Oyj's Operating Margin % has ranged from 1.62 to 6.30. According to the industry distribution chart, Kesko Oyj ranks #101 out of 310 companies in the Retail - Defensive industry, placing it in the top 32.6%.
Is Kesko Oyj's Operating Margin % too high?
Kesko Oyj's current Operating Margin % of 3.19% is 26% below median its 10-year median of 4.30. Over the past 10 years, this metric has ranged from a low of 1.62 to a high of 6.30. The Retail - Defensive industry median Operating Margin % is 3.28. Kesko Oyj's value of 3.19% is 2.6% below this industry median. Based on the distribution chart, Kesko Oyj ranks #101 out of 310 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, Kesko Oyj has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kesko Oyj's Operating Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Kesko Oyj ranks #101 out of 310 companies for Operating Margin %. This puts Kesko Oyj in the upper half of its industry. The industry median Operating Margin % is 3.28. Kesko Oyj's value of 3.19% is 2.6% below this benchmark. Historically, Kesko Oyj's own Operating Margin % has ranged from 1.62 to 6.30 over the past decade. While the company's 10-year median is 4.30 vs. the industry median of 3.28, Kesko Oyj 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 a Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 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. Kesko Oyj's current Operating Margin % of 3.19% is 2.6% 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 Kesko Oyj and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kesko Oyj's current Operating Margin % is 3.19%, which is 26% below median its own 10-year median of 4.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kesko Oyj stock overvalued right now?
Based on GuruFocus' analysis, Kesko Oyj (KKOYY) is currently considered Fairly Valued. The stock's GF Value™ is $11.43, compared to a current price of $11.25 — trading 1.6% below its estimated fair value. The current Operating Margin % is 3.19%, which is 26% below median its 10-year median of 4.30 and 2.6% below the Retail - Defensive industry median of 3.28. Kesko Oyj's overall GF Score™ is 78/100 with 7 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 Kesko Oyj (KKOYY), the current Operating Margin % is 3.19% 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 Kesko Oyj (KKOYY) Overvalued in 2026?
Based on GuruFocus' analysis, Kesko Oyj stock appears to be undervalued.
The current stock price of $11.25 is trading 1.6% below its estimated GF Value™ of $11.43.
GuruFocus considers Kesko Oyj to be Fairly Valued.
Key valuation signals for KKOYY:
Operating Margin %: 3.19% (26% below median its 10-year median of 4.30)
GF Value™: $11.43 vs. price of $11.25 (1.6% below fair value)
Industry Position: 2.6% below the Retail - Defensive median (#101 of 310)
No single metric tells the full story. See the KKOYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kesko Oyj is a Finland-based retail conglomerate that operates in three divisions: Grocery, Building and Technical, and Car. The Grocery segment provides the customers with K-food retailers running their locally tailored stores, acting in a chain business model. Chains include K-Citymarket, K-Supermarket, K-Market, and Neste K. The Building and Technical Sector produces construction materials, leisure athletic goods, and infrastructure tools and operates out of Scandinavia and Eastern Europe, both in digital and brick-and-mortar stores. The Car division acts as an importer and leaser for various European car brands, including Volkswagen, SEAT, Audi, and Porsche as well as a seller of used cars online and in-store. The Grocery segment in Finland produces the maximum revenue.
78GF Score
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