Hermes InternationalMEX:RMS N 81 Operating Margin % is 41.41% as of Dec. 2025, which is 9% above its 10-year median of 38.00. GuruFocus rates MEX:RMS N with a GF Score™ of 81/100 and a GF Value™ of MXN53,522.17 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 1,128 Retail - Cyclical companies, Hermes International ranks better than 99.02% on this metric.
Hermes International SA operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Hermes International's Operating Margin % or its related term are showing as below:
MEX:RMS N'
s Operating Margin % Range Over the Past 10 Years
Min: 31.82 Med: 38 Max: 42.86
Current: 41.84
MEX:RMS N's Operating Margin % is ranked better than 99.02% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs MEX:RMS N: 41.84
Hermes International's 5-Year Average Operating Margin % Growth Rate was 4.30% per year.
Hermes International (MEX:RMS N) 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.
Hermes International Operating Margin % Related Terms
Hermes International Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hermes International'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.
MEX:RMS N vs TPR, SIG: Operating Margin % Comparison
For the Luxury Goods subindustry, Hermes 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.
Hermes International Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Hermes International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hermes International's Operating Margin % falls into.
Hermes International 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.
Hermes International'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.
Hermes International (MEX:RMS N) has a Operating Margin % of 41.41% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hermes International and its competitors. This is near median its historical median of 38.00. Over the past decade, Hermes International's Operating Margin % has ranged from 31.82 to 42.86. According to the industry distribution chart, Hermes International ranks #11 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 1%.
Is Hermes International's Operating Margin % too high?
Hermes International's current Operating Margin % of 41.41% is near median its 10-year median of 38.00. Over the past 10 years, this metric has ranged from a low of 31.82 to a high of 42.86. The Retail - Cyclical industry median Operating Margin % is 3.91. Hermes International's value of 41.41% is 960.4% above this industry median. Based on the distribution chart, Hermes International ranks #11 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Hermes International has a GF Score™ of 81/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hermes International's Operating Margin % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Hermes International ranks #11 out of 1128 companies for Operating Margin %. This places Hermes International in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Hermes International's value of 41.41% is 960.4% above this benchmark. Historically, Hermes International's own Operating Margin % has ranged from 31.82 to 42.86 over the past decade. While the company's 10-year median is 38.00 vs. the industry median of 3.91, Hermes 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 3.91, based on 1,128 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. Hermes International's current Operating Margin % of 41.41% is 960.4% 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 Hermes International and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hermes International's current Operating Margin % is 41.41%, which is near median its own 10-year median of 38.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hermes International stock overvalued right now?
Based on GuruFocus' analysis, Hermes International (MEX:RMS N) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN53,522.17, compared to a current price of MXN35,500.00 — trading 33.7% below its estimated fair value. The current Operating Margin % is 41.41%, which is near median its 10-year median of 38.00 and 960.4% above the Retail - Cyclical industry median of 3.91. Hermes International's overall GF Score™ is 81/100 with 1 warning sign 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 Hermes International (MEX:RMS N), the current Operating Margin % is 41.41% as of Dec. 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 Hermes International (MEX:RMS N) Overvalued in 2026?
Based on GuruFocus' analysis, Hermes International stock appears to be undervalued.
The current stock price of MXN35,500.00 is trading 33.7% below its estimated GF Value™ of MXN53,522.17.
GuruFocus considers Hermes International to be Significantly Undervalued.
Key valuation signals for MEX:RMS N:
Operating Margin %: 41.41% (near median its 10-year median of 38.00)
GF Value™: MXN53,522.17 vs. price of MXN35,500.00 (33.7% below fair value)
Industry Position: 960.4% above the Retail - Cyclical median (#11 of 1128)
No single metric tells the full story. See the MEX:RMS N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hermès is over 180-year-old family controlled luxury goods company best known for its Birkin and Kelly bags. Its biggest segments are leather goods and saddlery, accounting for over 40% of revenue; clothes and accessories (28% of sales); silk and textiles (6%); and other products such as perfumes, watches, jewellery, and home furnishings. Hermès has about 300 stores globally.
81GF Score
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