Scandinavian Tobacco Group ASSNDVF -4.65%68 Operating Margin % is 8.72% as of Mar. 2026, which is 49% below its 10-year median of 16.99. GuruFocus rates SNDVF with a GF Score™ of 68/100 and a GF Value™ of $16.90 (Significantly Undervalued). The stock has 8 warning signs investors should review. Among 48 Tobacco Products companies, Scandinavian Tobacco Group AS ranks better than 60.42% on this metric.
Scandinavian Tobacco Group AS (OTCPK:SNDVF) 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.
Scandinavian Tobacco Group AS Operating Margin % Related Terms
Scandinavian Tobacco Group AS Operating Margin % Historical Data
* 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.
Scandinavian Tobacco Group AS Operating Margin % Chart
SNDVF vs PM, MO, TPB: Operating Margin % Comparison
For the Tobacco subindustry, Scandinavian Tobacco Group AS'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.
Scandinavian Tobacco Group AS Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Scandinavian Tobacco Group AS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Scandinavian Tobacco Group AS's Operating Margin % falls into.
Scandinavian Tobacco Group AS 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.
* 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.
Scandinavian Tobacco Group AS (SNDVF) has a Operating Margin % of 8.72% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Scandinavian Tobacco Group AS and its competitors. This is 49% below median its historical median of 16.99. Over the past decade, Scandinavian Tobacco Group AS's Operating Margin % has ranged from 14.04 to 22.32. According to the industry distribution chart, Scandinavian Tobacco Group AS ranks #19 out of 48 companies in the Tobacco Products industry, placing it in the top 39.6%.
Is Scandinavian Tobacco Group AS's Operating Margin % too high?
Scandinavian Tobacco Group AS's current Operating Margin % of 8.72% is 49% below median its 10-year median of 16.99. Over the past 10 years, this metric has ranged from a low of 14.04 to a high of 22.32. The Tobacco Products industry median Operating Margin % is 9.37. Scandinavian Tobacco Group AS's value of 8.72% is 6.9% below this industry median. Based on the distribution chart, Scandinavian Tobacco Group AS ranks #19 out of 48 companies in the Tobacco Products industry, which is above the industry midpoint. Overall, Scandinavian Tobacco Group AS has a GF Score™ of 68/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Scandinavian Tobacco Group AS's Operating Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Scandinavian Tobacco Group AS ranks #19 out of 48 companies for Operating Margin %. This puts Scandinavian Tobacco Group AS in the upper half of its industry. The industry median Operating Margin % is 9.37. Scandinavian Tobacco Group AS's value of 8.72% is 6.9% below this benchmark. Historically, Scandinavian Tobacco Group AS's own Operating Margin % has ranged from 14.04 to 22.32 over the past decade. While the company's 10-year median is 16.99 vs. the industry median of 9.37, Scandinavian Tobacco Group AS 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 Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 9.37, based on 48 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. Scandinavian Tobacco Group AS's current Operating Margin % of 8.72% is 6.9% 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 Scandinavian Tobacco Group AS and its competitors. For the Tobacco Products industry, the median Operating Margin % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Scandinavian Tobacco Group AS's current Operating Margin % is 8.72%, which is 49% below median its own 10-year median of 16.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Scandinavian Tobacco Group AS stock overvalued right now?
Based on GuruFocus' analysis, Scandinavian Tobacco Group AS (SNDVF) is currently considered Significantly Undervalued. The stock's GF Value™ is $16.90, compared to a current price of $10.25 — trading 39.3% below its estimated fair value. The current Operating Margin % is 8.72%, which is 49% below median its 10-year median of 16.99 and 6.9% below the Tobacco Products industry median of 9.37. Scandinavian Tobacco Group AS's overall GF Score™ is 68/100 with 8 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 Scandinavian Tobacco Group AS (SNDVF), the current Operating Margin % is 8.72% as of Mar. 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 Scandinavian Tobacco Group AS (SNDVF) Overvalued in 2026?
Based on GuruFocus' analysis, Scandinavian Tobacco Group AS stock appears to be undervalued.
The current stock price of $10.25 is trading 39.3% below its estimated GF Value™ of $16.90.
GuruFocus considers Scandinavian Tobacco Group AS to be Significantly Undervalued.
Key valuation signals for SNDVF:
Operating Margin %: 8.72% (49% below median its 10-year median of 16.99)
GF Value™: $16.90 vs. price of $10.25 (39.3% below fair value)
Industry Position: 6.9% below the Tobacco Products median (#19 of 48)
No single metric tells the full story. See the SNDVF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Scandinavian Tobacco Group AS Business Description
Scandinavian Tobacco Group AS offers cigars, pipe tobacco, and accessories in North America, Europe, and Australia. It operates in three segments: North America online and retail, which includes direct to consumer sales of all product categories sold via the online, catalogue and retail channel in North America. North America branded and the Rest of the World, which provides its products to wholesalers and distributors; Europe Branded comprises sale of all product categories to wholesalers, distributors and direct to retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, the UK, and Ireland.
68GF Score
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