B&M European Value RetailSTU:7Z5 58 Operating Margin % is 7.44% as of Mar. 2026, which is 25% below its 10-year median of 9.95. GuruFocus rates STU:7Z5 with a GF Score™ of 58/100 and a GF Value™ of €4.47. The stock has 5 warning signs investors should review. Among 310 Retail - Defensive companies, B&M European Value Retail ranks better than 77.42% on this metric.
B&M European Value Retail (STU:7Z5) 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.
B&M European Value Retail Operating Margin % Related Terms
B&M European Value Retail 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.
B&M European Value Retail Operating Margin % Chart
STU:7Z5 vs WMT, COST, TGT: Operating Margin % Comparison
For the Discount Stores subindustry, B&M European Value Retail'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.
B&M European Value Retail Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, B&M European Value Retail's Operating Margin % distribution charts can be found below:
* The bar in red indicates where B&M European Value Retail's Operating Margin % falls into.
B&M European Value Retail 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.
B&M European Value Retail's Operating Margin % for the fiscal year that ended in Mar. 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.
B&M European Value Retail (STU:7Z5) has a Operating Margin % of 7.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on B&M European Value Retail and its competitors. This is 25% below median its historical median of 9.95. Over the past decade, B&M European Value Retail's Operating Margin % has ranged from 6.48 to 13.05. According to the industry distribution chart, B&M European Value Retail ranks #70 out of 310 companies in the Retail - Defensive industry, placing it in the top 22.6%.
Is B&M European Value Retail's Operating Margin % too high?
B&M European Value Retail's current Operating Margin % of 7.44% is 25% below median its 10-year median of 9.95. Over the past 10 years, this metric has ranged from a low of 6.48 to a high of 13.05. The Retail - Defensive industry median Operating Margin % is 3.28. B&M European Value Retail's value of 7.44% is 127.2% above this industry median. Based on the distribution chart, B&M European Value Retail ranks #70 out of 310 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, B&M European Value Retail has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does B&M European Value Retail's Operating Margin % compare to WMT and COST?
According to the Retail - Defensive industry distribution chart, B&M European Value Retail ranks #70 out of 310 companies for Operating Margin %. This places B&M European Value Retail in the top 23% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.28. B&M European Value Retail's value of 7.44% is 127.2% above this benchmark. Historically, B&M European Value Retail's own Operating Margin % has ranged from 6.48 to 13.05 over the past decade. While the company's 10-year median is 9.95 vs. the industry median of 3.28, B&M European Value Retail 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 - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 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. B&M European Value Retail's current Operating Margin % of 7.44% is 127.2% 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 B&M European Value Retail and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. B&M European Value Retail's current Operating Margin % is 7.44%, which is 25% below median its own 10-year median of 9.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is B&M European Value Retail stock overvalued right now?
B&M European Value Retail (STU:7Z5) has a current Operating Margin % of 7.44%. The stock's GF Value™ is €4.47, compared to a current price of €2.12 — trading 52.6% below its estimated fair value. The current Operating Margin % is 7.44%, which is 25% below median its 10-year median of 9.95 and 127.2% above the Retail - Defensive industry median of 3.28. B&M European Value Retail's overall GF Score™ is 58/100 with 5 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 B&M European Value Retail (STU:7Z5), the current Operating Margin % is 7.44% 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 B&M European Value Retail (STU:7Z5) Overvalued in 2026?
Based on GuruFocus' analysis, B&M European Value Retail stock appears to be undervalued.
The current stock price of €2.12 is trading 52.6% below its estimated GF Value™ of €4.47.
Key valuation signals for STU:7Z5:
Operating Margin %: 7.44% (25% below median its 10-year median of 9.95)
GF Value™: €4.47 vs. price of €2.12 (52.6% below fair value)
Industry Position: 127.2% above the Retail - Defensive median (#70 of 310)
No single metric tells the full story. See the STU:7Z5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
B&M European Value Retail PLC is a retailer offering a targeted range of fast-moving consumer goods (FMCG) and general merchandise products at consistently low prices. It operates under an everyday low-price and cost-focused model, emphasizing operational efficiency and affordability for customers. The Group is a European variety discount retailer providing products at low prices through its stores. The Group operates through three segments: B&M UK, Heron UK, and B&M France, with B&M UK generating the maximum revenue.
58GF Score
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