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.
Kingsgate Consolidated Operating Margin % Related Terms
Kingsgate Consolidated Operating Margin % Historical Data
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The historical data trend for Kingsgate Consolidated'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.
For the Gold subindustry, Kingsgate Consolidated'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.
Kingsgate Consolidated Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Kingsgate Consolidated's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kingsgate Consolidated'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.
Kingsgate Consolidated's Operating Margin % for the fiscal year that ended in Jun. 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.
Kingsgate Consolidated (STU:KCN) has a Operating Margin % of 33.25% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kingsgate Consolidated and its competitors. According to the industry distribution chart, Kingsgate Consolidated ranks #136 out of 841 companies in the Metals & Mining industry, placing it in the top 16.2%.
Is Kingsgate Consolidated's Operating Margin % too high?
Kingsgate Consolidated's current Operating Margin % is 33.25%. The Metals & Mining industry median Operating Margin % is 5.72. Kingsgate Consolidated's value of 33.25% is 481.3% above this industry median. Based on the distribution chart, Kingsgate Consolidated ranks #136 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Kingsgate Consolidated has a GF Score™ of 53/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kingsgate Consolidated's Operating Margin % compare to NEM and AU?
According to the Metals & Mining industry distribution chart, Kingsgate Consolidated ranks #136 out of 841 companies for Operating Margin %. This places Kingsgate Consolidated in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.72. Kingsgate Consolidated's value of 33.25% is 481.3% above this benchmark. 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.72, based on 841 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. Kingsgate Consolidated's current Operating Margin % of 33.25% is 481.3% 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 Kingsgate Consolidated and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kingsgate Consolidated's current Operating Margin % is 33.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kingsgate Consolidated stock overvalued right now?
Based on GuruFocus' analysis, Kingsgate Consolidated (STU:KCN) is currently considered Significantly Undervalued. The stock's GF Value™ is €5.11, compared to a current price of €3.47 — trading 32.1% below its estimated fair value. The current Operating Margin % is 33.25% and 481.3% above the Metals & Mining industry median of 5.72. Kingsgate Consolidated's overall GF Score™ is 53/100 with 4 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 Kingsgate Consolidated (STU:KCN), the current Operating Margin % is 33.25% as of Dec. 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 Kingsgate Consolidated (STU:KCN) Overvalued in 2026?
Based on GuruFocus' analysis, Kingsgate Consolidated stock appears to be undervalued.
The current stock price of €3.47 is trading 32.1% below its estimated GF Value™ of €5.11.
GuruFocus considers Kingsgate Consolidated to be Significantly Undervalued.
Key valuation signals for STU:KCN:
Operating Margin %: 33.25%
GF Value™: €5.11 vs. price of €3.47 (32.1% below fair value)
Industry Position: 481.3% above the Metals & Mining median (#136 of 841)
No single metric tells the full story. See the STU:KCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kingsgate Consolidated Ltd is engaged in gold and silver mining, development, and exploration company based in Sydney, Australia. Its operating segment includes Chatree Gold Mine, Thailand, and Nueva Esperanza Gold/Silver Project, Chile. The company derives maximum revenue from the Chatree Gold Mine project.
53GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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