Duty Free InternationalSGX:5SO Operating Margin % is 5.10% as of Feb. 2026, which is 2% below its 10-year median of 5.18. The stock has 5 warning signs investors should review. Among 1,124 Retail - Cyclical companies, Duty Free International ranks better than 62.54% on this metric.
Duty Free International (SGX:5SO) 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.
Duty Free International Operating Margin % Related Terms
Duty Free International Operating Margin % Historical Data
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The historical data trend for Duty Free International'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.
SGX:5SO vs CASY, WSM, DKS: Operating Margin % Comparison
For the Specialty Retail subindustry, Duty Free International'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.
Duty Free International Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Duty Free International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Duty Free International's Operating Margin % falls into.
Duty Free International 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.
Duty Free International's Operating Margin % for the fiscal year that ended in Feb. 2026 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.
Duty Free International (SGX:5SO) has a Operating Margin % of 5.10% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Duty Free International and its competitors. This is near median its historical median of 5.18. According to the industry distribution chart, Duty Free International ranks #421 out of 1124 companies in the Retail - Cyclical industry, placing it in the top 37.5%.
Is Duty Free International's Operating Margin % too high?
Duty Free International's current Operating Margin % of 5.10% is near median its 10-year median of 5.18. The Retail - Cyclical industry median Operating Margin % is 3.92. Duty Free International's value of 5.10% is 30.3% above this industry median. Based on the distribution chart, Duty Free International ranks #421 out of 1124 companies in the Retail - Cyclical industry, which is above the industry midpoint.
How does Duty Free International's Operating Margin % compare to CASY and WSM?
According to the Retail - Cyclical industry distribution chart, Duty Free International ranks #421 out of 1124 companies for Operating Margin %. This puts Duty Free International in the upper half of its industry. The industry median Operating Margin % is 3.92. Duty Free International's value of 5.10% is 30.3% above this benchmark. While the company's 10-year median is 5.18 vs. the industry median of 3.92, Duty Free International 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 3.92, based on 1,124 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. Duty Free International's current Operating Margin % of 5.10% is 30.3% 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 Duty Free International and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Duty Free International's current Operating Margin % is 5.10%, which is near median its own 10-year median of 5.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Duty Free International stock overvalued right now?
Based on GuruFocus' analysis, Duty Free International (SGX:5SO) is currently considered Significantly Undervalued. The stock's GF Value™ is S$0.13, compared to a current price of S$0.07 — trading 46.9% below its estimated fair value. The current Operating Margin % is 5.10%, which is near median its 10-year median of 5.18 and 30.3% above the Retail - Cyclical industry median of 3.92. 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 Duty Free International (SGX:5SO), the current Operating Margin % is 5.10% as of Feb. 2026. 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.
Duty Free International Ltd is a diversified group engaged in the operations of duty-free retail businesses and the manufacture of automotive component parts. Its segments include Trading of duty free goods and non-dutiable merchandise includes revenues from sale of goods, Manufacturing and supplying of automotive component parts includes revenues from sale of goods, and Investment holding and others includes revenues from sale of oil palm fresh fruit bunches. The majority of revenue is derived from Trading of duty free goods and non-dutiable merchandise segment. Beyond its core businesses, DFI also owns the Black Forest Golf and Country Club and oil palm plantation assets. The activities of the company are carried out mainly in Malaysia.
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