Signet JewelersSIG +0.20%80 Operating Margin % is 2.38% as of Apr. 2026, which is 67% below its 10-year median of 7.16. GuruFocus rates SIG with a GF Score™ of 80/100 and a GF Value™ of $96.24 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,128 Retail - Cyclical companies, Signet Jewelers ranks better than 67.29% on this metric.
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.
Signet Jewelers Operating Margin % Related Terms
Signet Jewelers Operating Margin % Historical Data
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The historical data trend for Signet Jewelers'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.
SIG vs CPRI, REAL, MOV: Operating Margin % Comparison
For the Luxury Goods subindustry, Signet Jewelers'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.
Signet Jewelers Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Signet Jewelers's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Signet Jewelers'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.
Signet Jewelers's Operating Margin % for the fiscal year that ended in Jan. 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.
Signet Jewelers (SIG) has a Operating Margin % of 2.38% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Signet Jewelers and its competitors. This is 67% below median its historical median of 7.16. Over the past decade, Signet Jewelers' Operating Margin % has ranged from 2.78 to 11.52. According to the industry distribution chart, Signet Jewelers ranks #369 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 32.7%.
Is Signet Jewelers' Operating Margin % too high?
Signet Jewelers' current Operating Margin % of 2.38% is 67% below median its 10-year median of 7.16. Over the past 10 years, this metric has ranged from a low of 2.78 to a high of 11.52. The Retail - Cyclical industry median Operating Margin % is 3.91. Signet Jewelers' value of 2.38% is 39.1% below this industry median. Based on the distribution chart, Signet Jewelers ranks #369 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Signet Jewelers has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Signet Jewelers' Operating Margin % compare to CPRI and REAL?
According to the Retail - Cyclical industry distribution chart, Signet Jewelers ranks #369 out of 1128 companies for Operating Margin %. This puts Signet Jewelers in the upper half of its industry. The industry median Operating Margin % is 3.91. Signet Jewelers' value of 2.38% is 39.1% below this benchmark. Historically, Signet Jewelers' own Operating Margin % has ranged from 2.78 to 11.52 over the past decade. While the company's 10-year median is 7.16 vs. the industry median of 3.91, Signet Jewelers 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 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. Signet Jewelers's current Operating Margin % of 2.38% is 39.1% 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 Signet Jewelers 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. Signet Jewelers's current Operating Margin % is 2.38%, which is 67% below median its own 10-year median of 7.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Signet Jewelers stock overvalued right now?
Based on GuruFocus' analysis, Signet Jewelers (SIG) is currently considered Modestly Undervalued. The stock's GF Value™ is $96.24, compared to a current price of $85.09 — trading 11.6% below its estimated fair value. The current Operating Margin % is 2.38%, which is 67% below median its 10-year median of 7.16 and 39.1% below the Retail - Cyclical industry median of 3.91. Signet Jewelers' overall GF Score™ is 80/100 with 1 warning sign 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 Signet Jewelers (SIG), the current Operating Margin % is 2.38% as of Apr. 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.
Is Signet Jewelers (SIG) Overvalued in 2026?
Based on GuruFocus' analysis, Signet Jewelers stock appears to be undervalued.
The current stock price of $85.09 is trading 11.6% below its estimated GF Value™ of $96.24.
GuruFocus considers Signet Jewelers to be Modestly Undervalued.
Key valuation signals for SIG:
Operating Margin %: 2.38% (67% below median its 10-year median of 7.16)
GF Value™: $96.24 vs. price of $85.09 (11.6% below fair value)
Industry Position: 39.1% below the Retail - Cyclical median (#369 of 1128)
No single metric tells the full story. See the SIG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Signet Jewelers Ltd is a retailer of diamond jewelry. Its merchandise mix includes bridal, fashion, watches, and others. The bridal category includes engagement, wedding, and anniversary purchases. Its segments are the North America segment, the International segment, and the Other segment. The North America segment contributes to the majority of the revenue. The North America segment generates revenue from Mall and Outlet. Geographically, it operates in the USA, Canada, the UK, and Ireland, with the maximum revenue from the USA.
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