Lvmh Moet Hennessy Louis Vuitton SE (MIL:1MC) 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.
Lvmh Moet Hennessy Louis Vuitton SE Operating Margin % Related Terms
Lvmh Moet Hennessy Louis Vuitton SE 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.
Lvmh Moet Hennessy Louis Vuitton SE Operating Margin % Chart
MIL:1MC vs TPR, SIG: Operating Margin % Comparison
For the Luxury Goods subindustry, Lvmh Moet Hennessy Louis Vuitton SE'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.
Lvmh Moet Hennessy Louis Vuitton SE Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Lvmh Moet Hennessy Louis Vuitton SE's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lvmh Moet Hennessy Louis Vuitton SE's Operating Margin % falls into.
Lvmh Moet Hennessy Louis Vuitton SE 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.
* 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.
Lvmh Moet Hennessy Louis Vuitton SE (MIL:1MC) has a Operating Margin % of 21.16% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lvmh Moet Hennessy Louis Vuitton SE and its competitors. This is near median its historical median of 21.59. Over the past decade, Lvmh Moet Hennessy Louis Vuitton SE's Operating Margin % has ranged from 18.62 to 26.66. According to the industry distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #46 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 4.1%.
Is Lvmh Moet Hennessy Louis Vuitton SE's Operating Margin % too high?
Lvmh Moet Hennessy Louis Vuitton SE's current Operating Margin % of 21.16% is near median its 10-year median of 21.59. Over the past 10 years, this metric has ranged from a low of 18.62 to a high of 26.66. The Retail - Cyclical industry median Operating Margin % is 3.91. Lvmh Moet Hennessy Louis Vuitton SE's value of 21.16% is 441.9% above this industry median. Based on the distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #46 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Lvmh Moet Hennessy Louis Vuitton SE has a GF Score™ of 87/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lvmh Moet Hennessy Louis Vuitton SE's Operating Margin % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Lvmh Moet Hennessy Louis Vuitton SE ranks #46 out of 1128 companies for Operating Margin %. This places Lvmh Moet Hennessy Louis Vuitton SE in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Lvmh Moet Hennessy Louis Vuitton SE's value of 21.16% is 441.9% above this benchmark. Historically, Lvmh Moet Hennessy Louis Vuitton SE's own Operating Margin % has ranged from 18.62 to 26.66 over the past decade. While the company's 10-year median is 21.59 vs. the industry median of 3.91, Lvmh Moet Hennessy Louis Vuitton SE 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. Lvmh Moet Hennessy Louis Vuitton SE's current Operating Margin % of 21.16% is 441.9% 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 Lvmh Moet Hennessy Louis Vuitton SE 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. Lvmh Moet Hennessy Louis Vuitton SE's current Operating Margin % is 21.16%, which is near median its own 10-year median of 21.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lvmh Moet Hennessy Louis Vuitton SE stock overvalued right now?
Based on GuruFocus' analysis, Lvmh Moet Hennessy Louis Vuitton SE (MIL:1MC) is currently considered Modestly Undervalued. The stock's GF Value™ is €623.83, compared to a current price of €483.85 — trading 22.4% below its estimated fair value. The current Operating Margin % is 21.16%, which is near median its 10-year median of 21.59 and 441.9% above the Retail - Cyclical industry median of 3.91. Lvmh Moet Hennessy Louis Vuitton SE's overall GF Score™ is 87/100 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 Lvmh Moet Hennessy Louis Vuitton SE (MIL:1MC), the current Operating Margin % is 21.16% 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 Lvmh Moet Hennessy Louis Vuitton SE (MIL:1MC) Overvalued in 2026?
Based on GuruFocus' analysis, Lvmh Moet Hennessy Louis Vuitton SE stock appears to be undervalued.
The current stock price of €483.85 is trading 22.4% below its estimated GF Value™ of €623.83.
GuruFocus considers Lvmh Moet Hennessy Louis Vuitton SE to be Modestly Undervalued.
Key valuation signals for MIL:1MC:
Operating Margin %: 21.16% (near median its 10-year median of 21.59)
GF Value™: €623.83 vs. price of €483.85 (22.4% below fair value)
Industry Position: 441.9% above the Retail - Cyclical median (#46 of 1128)
No single metric tells the full story. See the MIL:1MC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lvmh Moet Hennessy Louis Vuitton SE Business Description
LVMH is a global producer and distributor of luxury goods. It operates six segments: fashion and leather goods, its largest and most profitable; watches and jewelry; wines and spirits; perfumes and cosmetics; selective retailing (including Sephora and airport duty-free retailer DFS); and other. Higher-profile brands include Louis Vuitton, Bulgari, Fendi, Givenchy, Tag Heuer, Hennessy, Moet & Chandon, Glenmorangie, Sephora, and Benefit. LVMH operates over 5,000 stores around the globe.
87GF Score
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