New World Department Store ChinaNWRLY 41 Operating Margin % is 13.13% as of Dec. 2025, which is 71% above its 10-year median of 7.67. GuruFocus rates NWRLY with a GF Score™ of 41/100 and a GF Value™ of $0.81. The stock has 5 warning signs investors should review. Among 1,128 Retail - Cyclical companies, New World Department Store China ranks better than 64.54% on this metric.
New World Department Store China (OTCPK:NWRLY) 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.
New World Department Store China Operating Margin % Related Terms
New World Department Store China 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.
New World Department Store China Operating Margin % Chart
For the Department Stores subindustry, New World Department Store China'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.
New World Department Store China Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, New World Department Store China's Operating Margin % distribution charts can be found below:
* The bar in red indicates where New World Department Store China's Operating Margin % falls into.
New World Department Store China 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.
New World Department Store China (NWRLY) has a Operating Margin % of 13.13% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on New World Department Store China and its competitors. This is 71% above median its historical median of 7.67. According to the industry distribution chart, New World Department Store China ranks #400 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 35.5%.
Is New World Department Store China's Operating Margin % too high?
New World Department Store China's current Operating Margin % of 13.13% is 71% above median its 10-year median of 7.67. The Retail - Cyclical industry median Operating Margin % is 3.91. New World Department Store China's value of 13.13% is 236.2% above this industry median. Based on the distribution chart, New World Department Store China ranks #400 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, New World Department Store China has a GF Score™ of 41/100, reflecting its overall financial health beyond just this single metric.
How does New World Department Store China's Operating Margin % compare to DDS?
According to the Retail - Cyclical industry distribution chart, New World Department Store China ranks #400 out of 1128 companies for Operating Margin %. This puts New World Department Store China in the upper half of its industry. The industry median Operating Margin % is 3.91. New World Department Store China's value of 13.13% is 236.2% above this benchmark. While the company's 10-year median is 7.67 vs. the industry median of 3.91, New World Department Store China 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. New World Department Store China's current Operating Margin % of 13.13% is 236.2% 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 New World Department Store China 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. New World Department Store China's current Operating Margin % is 13.13%, which is 71% above median its own 10-year median of 7.67. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New World Department Store China stock overvalued right now?
New World Department Store China (NWRLY) has a current Operating Margin % of 13.13%. The stock's GF Value™ is $0.81, compared to a current price of $0.92 — trading 13.9% above its estimated fair value. The current Operating Margin % is 13.13%, which is 71% above median its 10-year median of 7.67 and 236.2% above the Retail - Cyclical industry median of 3.91. New World Department Store China's overall GF Score™ is 41/100 with 5 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 New World Department Store China (NWRLY), the current Operating Margin % is 13.13% 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 New World Department Store China (NWRLY) Overvalued in 2026?
Based on GuruFocus' analysis, New World Department Store China stock appears to be overvalued.
The current stock price of $0.92 is trading 13.9% above its estimated GF Value™ of $0.81.
Key valuation signals for NWRLY:
Operating Margin %: 13.13% (71% above median its 10-year median of 7.67)
GF Value™: $0.81 vs. price of $0.92 (13.9% above fair value)
Industry Position: 236.2% above the Retail - Cyclical median (#400 of 1128)
No single metric tells the full story. See the NWRLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New World Department Store China Business Description
New World Department Store China Ltd is engaged in department stores, shopping malls, and property investment operations. The company operates through two segments, namely Department stores and Property Investment business. It generates maximum revenue from the Department store segment. Geographically, the company's revenue is predominantly generated in Mainland China.
41GF Score
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