Pan African ResourcesPAFRF 88 Operating Margin % is 44.90% as of Dec. 2025, which is 58% above its 10-year median of 28.47. GuruFocus rates PAFRF with a GF Score™ of 88/100 and a GF Value™ of $1.13 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 841 Metals & Mining companies, Pan African Resources ranks better than 89.42% on this metric.
Pan African Resources (OTCPK:PAFRF) 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.
Pan African Resources Operating Margin % Related Terms
Pan African Resources Operating Margin % Historical Data
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The historical data trend for Pan African Resources'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.
For the Gold subindustry, Pan African Resources'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.
Pan African Resources Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Pan African Resources's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pan African Resources's Operating Margin % falls into.
Pan African Resources 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.
Pan African Resources'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.
Pan African Resources (PAFRF) has a Operating Margin % of 44.90% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Pan African Resources and its competitors. This is 58% above median its historical median of 28.47. Over the past decade, Pan African Resources' Operating Margin % has ranged from 17.73 to 44.07. According to the industry distribution chart, Pan African Resources ranks #89 out of 841 companies in the Metals & Mining industry, placing it in the top 10.6%.
Is Pan African Resources' Operating Margin % too high?
Pan African Resources' current Operating Margin % of 44.90% is 58% above median its 10-year median of 28.47. Over the past 10 years, this metric has ranged from a low of 17.73 to a high of 44.07. The Metals & Mining industry median Operating Margin % is 5.79. Pan African Resources' value of 44.90% is 675.5% above this industry median. Based on the distribution chart, Pan African Resources ranks #89 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Pan African Resources has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pan African Resources' Operating Margin % compare to NEM and AU?
According to the Metals & Mining industry distribution chart, Pan African Resources ranks #89 out of 841 companies for Operating Margin %. This places Pan African Resources in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.79. Pan African Resources' value of 44.90% is 675.5% above this benchmark. Historically, Pan African Resources' own Operating Margin % has ranged from 17.73 to 44.07 over the past decade. While the company's 10-year median is 28.47 vs. the industry median of 5.79, Pan African Resources 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.79, based on 841 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. Pan African Resources's current Operating Margin % of 44.90% is 675.5% 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 Pan African Resources and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pan African Resources's current Operating Margin % is 44.90%, which is 58% above median its own 10-year median of 28.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pan African Resources stock overvalued right now?
Based on GuruFocus' analysis, Pan African Resources (PAFRF) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.13, compared to a current price of $1.61 — trading 42.5% above its estimated fair value. The current Operating Margin % is 44.90%, which is 58% above median its 10-year median of 28.47 and 675.5% above the Metals & Mining industry median of 5.79. Pan African Resources' overall GF Score™ is 88/100 with 3 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 Pan African Resources (PAFRF), the current Operating Margin % is 44.90% 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 Pan African Resources (PAFRF) Overvalued in 2026?
Based on GuruFocus' analysis, Pan African Resources stock appears to be overvalued.
The current stock price of $1.61 is trading 42.5% above its estimated GF Value™ of $1.13.
GuruFocus considers Pan African Resources to be Significantly Overvalued.
Key valuation signals for PAFRF:
Operating Margin %: 44.90% (58% above median its 10-year median of 28.47)
GF Value™: $1.13 vs. price of $1.61 (42.5% above fair value)
Industry Position: 675.5% above the Metals & Mining median (#89 of 841)
No single metric tells the full story. See the PAFRF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pan African Resources PLC is engaged in gold mining and exploration activities. The group owns and operates a portfolio of projects located in South Africa, Australia, and an exploration project in Sudan. Its project portfolio comprises Fairview Mine, Sheba and Consort Mines, BTRP, Elikhulu, MTR, Evander Mines, and Tennant Mines. The group's reporting segments are: Mining operations and Other operations. Maximum revenue is generated from the Mining operations segment, which generates revenue from mining, extraction, production, and the sale of gold. The Other operations segment represents its exploration assets in Sudan, Agricultural ESG projects, and other activities. Geographically, the group generates maximum revenue from South Africa, followed by Australia, and UK and Europe.
88GF Score
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