MEKO ABLTS:0HDJ -1.29%74 Operating Margin % is 3.82% as of Mar. 2026, which is 33% below its 10-year median of 5.71. GuruFocus rates LTS:0HDJ with a GF Score™ of 74/100 and a GF Value™ of kr117.89 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,322 Vehicles & Parts companies, MEKO AB ranks worse than 67.4% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. MEKO AB's Operating Income for the
three
months ended in Mar. 2026 was kr174 Mil. MEKO AB's Revenue for the
three
months ended in Mar. 2026 was kr4,552 Mil. Therefore, MEKO AB's Operating Margin % for the quarter that ended in Mar. 2026 was 3.82%.
Warning Sign:
MEKO AB operating margin has been in a 5-year decline. The average rate of decline per year is -13.3%.
The historical rank and industry rank for MEKO AB's Operating Margin % or its related term are showing as below:
LTS:0HDJ'
s Operating Margin % Range Over the Past 10 Years
Min: 2.75 Med: 5.71 Max: 8.88
Current: 2.81
LTS:0HDJ's Operating Margin % is ranked worse than 67.4% of 1322
companies
in the Vehicles & Parts industry
Industry Median: 4.88
vs LTS:0HDJ: 2.81
MEKO AB's 5-Year Average Operating Margin % Growth Rate was -13.30% per year.
MEKO AB's Operating Income for the
three
months ended in Mar. 2026 was kr174 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was kr512 Mil.
MEKO AB (LTS:0HDJ) 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.
MEKO AB Operating Margin % Related Terms
MEKO AB Operating Margin % Historical Data
* Premium members only.
The historical data trend for MEKO AB'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.
LTS:0HDJ vs ORLY, AZO, GPC: Operating Margin % Comparison
For the Auto Parts subindustry, MEKO AB'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.
MEKO AB Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, MEKO AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MEKO AB'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.
MEKO AB'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.
MEKO AB (LTS:0HDJ) has a Operating Margin % of 3.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on MEKO AB and its competitors. This is 33% below median its historical median of 5.71. Over the past decade, MEKO AB's Operating Margin % has ranged from 2.75 to 8.88. According to the industry distribution chart, MEKO AB ranks #891 out of 1322 companies in the Vehicles & Parts industry, placing it in the top 67.4%.
Is MEKO AB's Operating Margin % too high?
MEKO AB's current Operating Margin % of 3.82% is 33% below median its 10-year median of 5.71. Over the past 10 years, this metric has ranged from a low of 2.75 to a high of 8.88. The Vehicles & Parts industry median Operating Margin % is 4.88. MEKO AB's value of 3.82% is 21.7% below this industry median. Based on the distribution chart, MEKO AB ranks #891 out of 1322 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, MEKO AB has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does MEKO AB's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, MEKO AB ranks #891 out of 1322 companies for Operating Margin %. This places MEKO AB in the lower half of its industry. The industry median Operating Margin % is 4.88. MEKO AB's value of 3.82% is 21.7% below this benchmark. Historically, MEKO AB's own Operating Margin % has ranged from 2.75 to 8.88 over the past decade. While the company's 10-year median is 5.71 vs. the industry median of 4.88, MEKO AB 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.88, based on 1,322 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. MEKO AB's current Operating Margin % of 3.82% is 21.7% 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 MEKO AB and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MEKO AB's current Operating Margin % is 3.82%, which is 33% below median its own 10-year median of 5.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MEKO AB stock overvalued right now?
Based on GuruFocus' analysis, MEKO AB (LTS:0HDJ) is currently considered Possible Value Trap. The stock's GF Value™ is kr117.89, compared to a current price of kr76.73 — trading 34.9% below its estimated fair value. The current Operating Margin % is 3.82%, which is 33% below median its 10-year median of 5.71 and 21.7% below the Vehicles & Parts industry median of 4.88. MEKO AB's overall GF Score™ is 74/100 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 MEKO AB (LTS:0HDJ), the current Operating Margin % is 3.82% 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 MEKO AB (LTS:0HDJ) Overvalued in 2026?
Based on GuruFocus' analysis, MEKO AB stock appears to be undervalued.
The current stock price of kr76.73 is trading 34.9% below its estimated GF Value™ of kr117.89.
GuruFocus considers MEKO AB to be Possible Value Trap.
Key valuation signals for LTS:0HDJ:
Operating Margin %: 3.82% (33% below median its 10-year median of 5.71)
GF Value™: kr117.89 vs. price of kr76.73 (34.9% below fair value)
Industry Position: 21.7% below the Vehicles & Parts median (#891 of 1322)
No single metric tells the full story. See the LTS:0HDJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MEKO AB functions in the car aftermarket, operating car service chains, and wholesale operations. The company offers spare parts and accessories to affiliated workshops, other workshops, other business-to-business customers, and car owners. The company conducts business through segments: Denmark, Finland, Poland/the Baltics, Sweden/Norway, and Sorensen og Balchen (Norway). It generates maximum revenue from Sweden/Norway. The Affiliated workshops of the company operate under the company's brands: BilXtra, MECA, Mekonomen BFTZ, Fixus, Inter-Team, among others.
74GF Score
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