Watches of Switzerland GroupSTU:5WS -3.65%87 Operating Margin % is 9.29% as of Oct. 2025, which is 1% above its 10-year median of 9.22. GuruFocus rates STU:5WS with a GF Score™ of 87/100 and a GF Value™ of €6.26 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Watches of Switzerland Group ranks better than 77.93% on this metric.
Watches of Switzerland Group (STU:5WS) 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.
Watches of Switzerland Group Operating Margin % Related Terms
Watches of Switzerland Group 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.
Watches of Switzerland Group Operating Margin % Chart
STU:5WS vs TPR, SIG: Operating Margin % Comparison
For the Luxury Goods subindustry, Watches of Switzerland Group'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.
Watches of Switzerland Group Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Watches of Switzerland Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Watches of Switzerland Group's Operating Margin % falls into.
Watches of Switzerland Group 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.
Watches of Switzerland Group (STU:5WS) has a Operating Margin % of 9.29% as of Oct. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Watches of Switzerland Group and its competitors. This is near median its historical median of 9.22. Over the past decade, Watches of Switzerland Group's Operating Margin % has ranged from 3.96 to 11.61. According to the industry distribution chart, Watches of Switzerland Group ranks #249 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 22.1%.
Is Watches of Switzerland Group's Operating Margin % too high?
Watches of Switzerland Group's current Operating Margin % of 9.29% is near median its 10-year median of 9.22. Over the past 10 years, this metric has ranged from a low of 3.96 to a high of 11.61. The Retail - Cyclical industry median Operating Margin % is 3.91. Watches of Switzerland Group's value of 9.29% is 137.9% above this industry median. Based on the distribution chart, Watches of Switzerland Group ranks #249 out of 1128 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Watches of Switzerland Group has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Watches of Switzerland Group's Operating Margin % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, Watches of Switzerland Group ranks #249 out of 1128 companies for Operating Margin %. This places Watches of Switzerland Group in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.91. Watches of Switzerland Group's value of 9.29% is 137.9% above this benchmark. Historically, Watches of Switzerland Group's own Operating Margin % has ranged from 3.96 to 11.61 over the past decade. While the company's 10-year median is 9.22 vs. the industry median of 3.91, Watches of Switzerland Group 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. Watches of Switzerland Group's current Operating Margin % of 9.29% is 137.9% 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 Watches of Switzerland Group 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. Watches of Switzerland Group's current Operating Margin % is 9.29%, which is near median its own 10-year median of 9.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Watches of Switzerland Group stock overvalued right now?
Based on GuruFocus' analysis, Watches of Switzerland Group (STU:5WS) is currently considered Modestly Overvalued. The stock's GF Value™ is €6.26, compared to a current price of €8.05 — trading 28.6% above its estimated fair value. The current Operating Margin % is 9.29%, which is near median its 10-year median of 9.22 and 137.9% above the Retail - Cyclical industry median of 3.91. Watches of Switzerland Group's overall GF Score™ is 87/100 with 6 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 Watches of Switzerland Group (STU:5WS), the current Operating Margin % is 9.29% as of Oct. 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 Watches of Switzerland Group (STU:5WS) Overvalued in 2026?
Based on GuruFocus' analysis, Watches of Switzerland Group stock appears to be overvalued.
The current stock price of €8.05 is trading 28.6% above its estimated GF Value™ of €6.26.
GuruFocus considers Watches of Switzerland Group to be Modestly Overvalued.
Key valuation signals for STU:5WS:
Operating Margin %: 9.29% (near median its 10-year median of 9.22)
GF Value™: €6.26 vs. price of €8.05 (28.6% above fair value)
Industry Position: 137.9% above the Retail - Cyclical median (#249 of 1128)
No single metric tells the full story. See the STU:5WS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Watches of Switzerland Group PLC is a retailer of luxury watches and jewellerys in the United Kingdom. Other than luxury watch offerings, the company also offers luxury jewellery, fashion, and classic watches and a range of watch and jewellery aftercare services. The company's geographical segments are the United Kingdom and Europe, and the United States, of which the majority of the revenue comes from the United Kingdom and Europe segment.
87GF Score
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