Colonial Motor CoNZSE:CMO 64 Operating Margin % is 3.58% as of Dec. 2025, which is 11% below its 10-year median of 4.02. GuruFocus rates NZSE:CMO with a GF Score™ of 64/100 and a GF Value™ of NZ$8.56 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Colonial Motor Co ranks worse than 57.21% on this metric.
Colonial Motor Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Colonial Motor Co (NZSE:CMO) 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.
Colonial Motor Co Operating Margin % Related Terms
Colonial Motor Co Operating Margin % Historical Data
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The historical data trend for Colonial Motor Co'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.
NZSE:CMO vs CVNA, PAG, ALTB: Operating Margin % Comparison
For the Auto & Truck Dealerships subindustry, Colonial Motor Co'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.
Colonial Motor Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Colonial Motor Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Colonial Motor Co'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.
Colonial Motor Co's Operating Margin % for the fiscal year that ended in Jun. 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.
Colonial Motor Co (NZSE:CMO) has a Operating Margin % of 3.58% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Colonial Motor Co and its competitors. This is 11% below median its historical median of 4.02. According to the industry distribution chart, Colonial Motor Co ranks #758 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 57.2%.
Is Colonial Motor Co's Operating Margin % too high?
Colonial Motor Co's current Operating Margin % of 3.58% is 11% below median its 10-year median of 4.02. The Vehicles & Parts industry median Operating Margin % is 4.86. Colonial Motor Co's value of 3.58% is 26.3% below this industry median. Based on the distribution chart, Colonial Motor Co ranks #758 out of 1325 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Colonial Motor Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Colonial Motor Co's Operating Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Colonial Motor Co ranks #758 out of 1325 companies for Operating Margin %. This places Colonial Motor Co in the lower half of its industry. The industry median Operating Margin % is 4.86. Colonial Motor Co's value of 3.58% is 26.3% below this benchmark. While the company's 10-year median is 4.02 vs. the industry median of 4.86, Colonial Motor Co 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 4.86, based on 1,325 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. Colonial Motor Co's current Operating Margin % of 3.58% is 26.3% 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 Colonial Motor Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Colonial Motor Co's current Operating Margin % is 3.58%, which is 11% below median its own 10-year median of 4.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Colonial Motor Co stock overvalued right now?
Based on GuruFocus' analysis, Colonial Motor Co (NZSE:CMO) is currently considered Modestly Undervalued. The stock's GF Value™ is NZ$8.56, compared to a current price of NZ$7.00 — trading 18.2% below its estimated fair value. The current Operating Margin % is 3.58%, which is 11% below median its 10-year median of 4.02 and 26.3% below the Vehicles & Parts industry median of 4.86. Colonial Motor Co's overall GF Score™ is 64/100 with 4 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 Colonial Motor Co (NZSE:CMO), the current Operating Margin % is 3.58% 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 Colonial Motor Co (NZSE:CMO) Overvalued in 2026?
Based on GuruFocus' analysis, Colonial Motor Co stock appears to be undervalued.
The current stock price of NZ$7.00 is trading 18.2% below its estimated GF Value™ of NZ$8.56.
GuruFocus considers Colonial Motor Co to be Modestly Undervalued.
Key valuation signals for NZSE:CMO:
Operating Margin %: 3.58% (11% below median its 10-year median of 4.02)
GF Value™: NZ$8.56 vs. price of NZ$7.00 (18.2% below fair value)
Industry Position: 26.3% below the Vehicles & Parts median (#758 of 1325)
No single metric tells the full story. See the NZSE:CMO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Colonial Motor Co Ltd is a New Zealand-based company engaged in the principal activity of operating franchised motor vehicle dealerships. It owns motor vehicle dealerships throughout the country and has dealerships selling heavy trucks and tractors. The company has many dealerships and has a primary focus on Ford. Also, the company provides administrative and financial services to the subsidiaries as well as leasing them at market rates for many of the properties. Substantial revenue is generated from the sale of goods.
64GF Score
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