MetcashMCSHF -36.26%63 Operating Margin % is 3.11% as of Apr. 2026, which is 11% above its 10-year median of 2.79. GuruFocus rates MCSHF with a GF Score™ of 63/100 and a GF Value™ of $1.72 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 310 Retail - Defensive companies, Metcash ranks worse than 56.77% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Metcash's Operating Income for the
six
months ended in Apr. 2026 was $196 Mil. Metcash's Revenue for the
six
months ended in Apr. 2026 was $6,295 Mil. Therefore, Metcash's Operating Margin % for the quarter that ended in Apr. 2026 was 3.11%.
Good Sign:
Metcash Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Metcash's Operating Margin % or its related term are showing as below:
MCSHF'
s Operating Margin % Range Over the Past 10 Years
Min: 0.85 Med: 2.79 Max: 3.16
Current: 2.9
MCSHF's Operating Margin % is ranked worse than 56.77% of 310
companies
in the Retail - Defensive industry
Industry Median: 3.275
vs MCSHF: 2.90
Metcash's 5-Year Average Operating Margin % Growth Rate was 0.40% per year.
Metcash's Operating Income for the
six
months ended in Apr. 2026 was $196 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was $344 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.
Metcash Operating Margin % Related Terms
Metcash Operating Margin % Historical Data
* Premium members only.
The historical data trend for Metcash'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.
MCSHF vs SYY, USFD, PFGC: Operating Margin % Comparison
For the Food Distribution subindustry, Metcash'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.
Metcash Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Metcash's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Metcash'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.
Metcash's Operating Margin % for the fiscal year that ended in Apr. 2026 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.
Metcash (MCSHF) has a Operating Margin % of 3.11% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Metcash and its competitors. This is 11% above median its historical median of 2.79. Over the past decade, Metcash's Operating Margin % has ranged from 0.85 to 3.16. According to the industry distribution chart, Metcash ranks #176 out of 310 companies in the Retail - Defensive industry, placing it in the top 56.8%.
Is Metcash's Operating Margin % too high?
Metcash's current Operating Margin % of 3.11% is 11% above median its 10-year median of 2.79. Over the past 10 years, this metric has ranged from a low of 0.85 to a high of 3.16. The Retail - Defensive industry median Operating Margin % is 3.28. Metcash's value of 3.11% is 5% below this industry median. Based on the distribution chart, Metcash ranks #176 out of 310 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Metcash has a GF Score™ of 63/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Metcash's Operating Margin % compare to SYY and USFD?
According to the Retail - Defensive industry distribution chart, Metcash ranks #176 out of 310 companies for Operating Margin %. This places Metcash in the lower half of its industry. The industry median Operating Margin % is 3.28. Metcash's value of 3.11% is 5% below this benchmark. Historically, Metcash's own Operating Margin % has ranged from 0.85 to 3.16 over the past decade. While the company's 10-year median is 2.79 vs. the industry median of 3.28, Metcash 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. Metcash's current Operating Margin % of 3.11% is 5% 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 Metcash 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. Metcash's current Operating Margin % is 3.11%, which is 11% above median its own 10-year median of 2.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Metcash stock overvalued right now?
Based on GuruFocus' analysis, Metcash (MCSHF) is currently considered Modestly Undervalued. The stock's GF Value™ is $1.72, compared to a current price of $1.48 — trading 14% below its estimated fair value. The current Operating Margin % is 3.11%, which is 11% above median its 10-year median of 2.79 and 5% below the Retail - Defensive industry median of 3.28. Metcash's overall GF Score™ is 63/100 with 2 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 Metcash (MCSHF), the current Operating Margin % is 3.11% as of Apr. 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 Metcash (MCSHF) Overvalued in 2026?
Based on GuruFocus' analysis, Metcash stock appears to be undervalued.
The current stock price of $1.48 is trading 14% below its estimated GF Value™ of $1.72.
GuruFocus considers Metcash to be Modestly Undervalued.
Key valuation signals for MCSHF:
Operating Margin %: 3.11% (11% above median its 10-year median of 2.79)
GF Value™: $1.72 vs. price of $1.48 (14% below fair value)
Industry Position: 5% below the Retail - Defensive median (#176 of 310)
No single metric tells the full story. See the MCSHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Metcash is a wholesaler, and to a lesser extent a retailer, specializing in food, liquor, and hardware. Centralized wholesale distribution enables independent retailers to gain access to the combined scale of many retailers to negotiate material volume discounts.The food segment distributes a range of products and services to independent supermarket and convenience stores. The hardware segment distributes hardware products to independent retail outlets and operates company-owned stores. The liquor segment distributes liquor products to independent retailers and venues like pubs.
63GF Score
Get the complete analysis for MCSHF
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