Prada SpAPRDSY -1.02%77 Operating Margin % is 23.23% as of Dec. 2025, which is 62% above its 10-year median of 14.36. GuruFocus rates PRDSY with a GF Score™ of 77/100 and a GF Value™ of $17.88 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Prada SpA ranks better than 96.37% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Prada SpA's Operating Income for the
six
months ended in Dec. 2025 was $810 Mil. Prada SpA's Revenue for the
six
months ended in Dec. 2025 was $3,487 Mil. Therefore, Prada SpA's Operating Margin % for the quarter that ended in Dec. 2025 was 23.23%.
Good Sign:
Prada SpA operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Prada SpA's Operating Margin % or its related term are showing as below:
PRDSY'
s Operating Margin % Range Over the Past 10 Years
Min: 0.83 Med: 14.36 Max: 23.56
Current: 22.72
PRDSY's Operating Margin % is ranked better than 96.37% of 1128
companies
in the Retail - Cyclical industry
Industry Median: 3.905
vs PRDSY: 22.72
Prada SpA's 5-Year Average Operating Margin % Growth Rate was 68.20% per year.
Prada SpA's Operating Income for the
six
months ended in Dec. 2025 was $810 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $1,510 Mil.
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.
Prada SpA Operating Margin % Related Terms
Prada SpA Operating Margin % Historical Data
* Premium members only.
The historical data trend for Prada SpA'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 Luxury Goods subindustry, Prada SpA'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.
Prada SpA Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Prada SpA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Prada SpA'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.
Prada SpA'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.
Prada SpA (PRDSY) has a Operating Margin % of 23.23% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Prada SpA and its competitors. This is 62% above median its historical median of 14.36. Over the past decade, Prada SpA's Operating Margin % has ranged from 0.83 to 23.56. According to the industry distribution chart, Prada SpA ranks #41 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 3.6%.
Is Prada SpA's Operating Margin % too high?
Prada SpA's current Operating Margin % of 23.23% is 62% above median its 10-year median of 14.36. Over the past 10 years, this metric has ranged from a low of 0.83 to a high of 23.56. The Retail - Cyclical industry median Operating Margin % is 3.91. Prada SpA's value of 23.23% is 494.9% above this industry median. Based on the distribution chart, Prada SpA ranks #41 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Prada SpA has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Prada SpA's Operating Margin % compare to TPR?
According to the Retail - Cyclical industry distribution chart, Prada SpA ranks #41 out of 1128 companies for Operating Margin %. This places Prada SpA in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Prada SpA's value of 23.23% is 494.9% above this benchmark. Historically, Prada SpA's own Operating Margin % has ranged from 0.83 to 23.56 over the past decade. While the company's 10-year median is 14.36 vs. the industry median of 3.91, Prada SpA 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. Prada SpA's current Operating Margin % of 23.23% is 494.9% 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 Prada SpA 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. Prada SpA's current Operating Margin % is 23.23%, which is 62% above median its own 10-year median of 14.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Prada SpA stock overvalued right now?
Based on GuruFocus' analysis, Prada SpA (PRDSY) is currently considered Significantly Undervalued. The stock's GF Value™ is $17.88, compared to a current price of $9.22 — trading 48.4% below its estimated fair value. The current Operating Margin % is 23.23%, which is 62% above median its 10-year median of 14.36 and 494.9% above the Retail - Cyclical industry median of 3.91. Prada SpA's overall GF Score™ is 77/100 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 Prada SpA (PRDSY), the current Operating Margin % is 23.23% 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 Prada SpA (PRDSY) Overvalued in 2026?
Based on GuruFocus' analysis, Prada SpA stock appears to be undervalued.
The current stock price of $9.22 is trading 48.4% below its estimated GF Value™ of $17.88.
GuruFocus considers Prada SpA to be Significantly Undervalued.
Key valuation signals for PRDSY:
Operating Margin %: 23.23% (62% above median its 10-year median of 14.36)
GF Value™: $17.88 vs. price of $9.22 (48.4% below fair value)
Industry Position: 494.9% above the Retail - Cyclical median (#41 of 1128)
No single metric tells the full story. See the PRDSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Prada is a family-owned holding comprising the Prada brand, a younger and more fashion-oriented Miu Miu, and two classic shoe brands: Church's and Car Shoe. The company generates EUR 5.4 billion in sales, with over 70% from the Prada brand. Geographically, Asia is the biggest region with 33% of retail sales, followed by Europe at 32%, 17% in the Americas, and 13% in Japan. In 2025, the Prada group acquired the Versace brand, which should contribute 13% of revenue on a pro forma basis.
77GF Score
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