Luk Fook Holdings (International)LKFLF +10.28%90 Operating Margin % is 16.58% as of Sep. 2025, which is 34% above its 10-year median of 12.37. GuruFocus rates LKFLF with a GF Score™ of 90/100 and a GF Value™ of $3.37 (Modestly Undervalued). Among 1,124 Retail - Cyclical companies, Luk Fook Holdings (International) ranks better than 94.31% 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.
Luk Fook Holdings (International) Operating Margin % Related Terms
Luk Fook Holdings (International) Operating Margin % Historical Data
* 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 Luxury Goods subindustry, Luk Fook Holdings (International)'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.
Luk Fook Holdings (International) Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Luk Fook Holdings (International)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where Luk Fook Holdings (International)'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.
* 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.
Luk Fook Holdings (International) (LKFLF) has a Operating Margin % of 16.58% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Luk Fook Holdings (International) and its competitors. This is 34% above median its historical median of 12.37. Over the past decade, Luk Fook Holdings (International)'s Operating Margin % has ranged from 8.95 to 20.00. According to the industry distribution chart, Luk Fook Holdings (International) ranks #64 out of 1124 companies in the Retail - Cyclical industry, placing it in the top 5.7%.
Is Luk Fook Holdings (International)'s Operating Margin % too high?
Luk Fook Holdings (International)'s current Operating Margin % of 16.58% is 34% above median its 10-year median of 12.37. Over the past 10 years, this metric has ranged from a low of 8.95 to a high of 20.00. The Retail - Cyclical industry median Operating Margin % is 3.92. Luk Fook Holdings (International)'s value of 16.58% is 323.5% above this industry median. Based on the distribution chart, Luk Fook Holdings (International) ranks #64 out of 1124 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Luk Fook Holdings (International) has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luk Fook Holdings (International)'s Operating Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Luk Fook Holdings (International) ranks #64 out of 1124 companies for Operating Margin %. This places Luk Fook Holdings (International) in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.92. Luk Fook Holdings (International)'s value of 16.58% is 323.5% above this benchmark. Historically, Luk Fook Holdings (International)'s own Operating Margin % has ranged from 8.95 to 20.00 over the past decade. While the company's 10-year median is 12.37 vs. the industry median of 3.92, Luk Fook Holdings (International) 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.92, based on 1,124 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. Luk Fook Holdings (International)'s current Operating Margin % of 16.58% is 323.5% 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 Luk Fook Holdings (International) and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luk Fook Holdings (International)'s current Operating Margin % is 16.58%, which is 34% above median its own 10-year median of 12.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luk Fook Holdings (International) stock overvalued right now?
Based on GuruFocus' analysis, Luk Fook Holdings (International) (LKFLF) is currently considered Modestly Undervalued. The stock's GF Value™ is $3.37, compared to a current price of $2.95 — trading 12.5% below its estimated fair value. The current Operating Margin % is 16.58%, which is 34% above median its 10-year median of 12.37 and 323.5% above the Retail - Cyclical industry median of 3.92. Luk Fook Holdings (International)'s overall GF Score™ is 90/100. 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 Luk Fook Holdings (International) (LKFLF), the current Operating Margin % is 16.58% 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 Luk Fook Holdings (International) (LKFLF) Overvalued in 2026?
Based on GuruFocus' analysis, Luk Fook Holdings (International) stock appears to be undervalued.
The current stock price of $2.95 is trading 12.5% below its estimated GF Value™ of $3.37.
GuruFocus considers Luk Fook Holdings (International) to be Modestly Undervalued.
Key valuation signals for LKFLF:
Operating Margin %: 16.58% (34% above median its 10-year median of 12.37)
GF Value™: $3.37 vs. price of $2.95 (12.5% below fair value)
Industry Position: 323.5% above the Retail - Cyclical median (#64 of 1124)
No single metric tells the full story. See the LKFLF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luk Fook Holdings (International) Business Description
Luk Fook Holdings (International) Ltd is a Hong Kong-based investment holding company. The company is engaged in the sourcing, designing, wholesaling, trademark licensing and retailing of a variety of gold and platinum jewelry and gem-set jewelry products. It operates through the following five segments: Retailing in Hong Kong, Macau and Overseas; Retailing in Mainland China; Wholesaling in Hong Kong; Wholesaling in Mainland China; and Licensing. The company generates maximum revenue from Retailing in Hong Kong, Macau and Overseas segments.
90GF Score
Get the complete analysis for LKFLF
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
LKFLF has been successfully added to your 
