Luks Group (Vietnam Holdings) Co (STU:LU4) 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.
Luks Group (Vietnam Holdings) Co Operating Margin % Related Terms
Luks Group (Vietnam Holdings) Co 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.
Luks Group (Vietnam Holdings) Co Operating Margin % Chart
STU:LU4 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Luks Group (Vietnam Holdings) Co'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.
Luks Group (Vietnam Holdings) Co Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Luks Group (Vietnam Holdings) Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Luks Group (Vietnam Holdings) Co's Operating Margin % falls into.
Luks Group (Vietnam Holdings) Co 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.
Luks Group (Vietnam Holdings) Co (STU:LU4) has a Operating Margin % of 19.16% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Luks Group (Vietnam Holdings) Co and its competitors. This is 28% above median its historical median of 15.01. Over the past decade, Luks Group (Vietnam Holdings) Co's Operating Margin % has ranged from 12.38 to 20.85. According to the industry distribution chart, Luks Group (Vietnam Holdings) Co ranks #58 out of 405 companies in the Building Materials industry, placing it in the top 14.3%.
Is Luks Group (Vietnam Holdings) Co's Operating Margin % too high?
Luks Group (Vietnam Holdings) Co's current Operating Margin % of 19.16% is 28% above median its 10-year median of 15.01. Over the past 10 years, this metric has ranged from a low of 12.38 to a high of 20.85. The Building Materials industry median Operating Margin % is 7.64. Luks Group (Vietnam Holdings) Co's value of 19.16% is 150.8% above this industry median. Based on the distribution chart, Luks Group (Vietnam Holdings) Co ranks #58 out of 405 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Luks Group (Vietnam Holdings) Co has a GF Score™ of 48/100, reflecting its overall financial health beyond just this single metric.
How does Luks Group (Vietnam Holdings) Co's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Luks Group (Vietnam Holdings) Co ranks #58 out of 405 companies for Operating Margin %. This places Luks Group (Vietnam Holdings) Co in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.64. Luks Group (Vietnam Holdings) Co's value of 19.16% is 150.8% above this benchmark. Historically, Luks Group (Vietnam Holdings) Co's own Operating Margin % has ranged from 12.38 to 20.85 over the past decade. While the company's 10-year median is 15.01 vs. the industry median of 7.64, Luks Group (Vietnam Holdings) Co 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.64, based on 405 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. Luks Group (Vietnam Holdings) Co's current Operating Margin % of 19.16% is 150.8% 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 Luks Group (Vietnam Holdings) Co and its competitors. For the Building Materials industry, the median Operating Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luks Group (Vietnam Holdings) Co's current Operating Margin % is 19.16%, which is 28% above median its own 10-year median of 15.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luks Group (Vietnam Holdings) Co stock overvalued right now?
Luks Group (Vietnam Holdings) Co (STU:LU4) has a current Operating Margin % of 19.16%. The stock's GF Value™ is €0.07, compared to a current price of €0.08 — trading 18.6% above its estimated fair value. The current Operating Margin % is 19.16%, which is 28% above median its 10-year median of 15.01 and 150.8% above the Building Materials industry median of 7.64. Luks Group (Vietnam Holdings) Co's overall GF Score™ is 48/100 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 Luks Group (Vietnam Holdings) Co (STU:LU4), the current Operating Margin % is 19.16% 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 Luks Group (Vietnam Holdings) Co (STU:LU4) Overvalued in 2026?
Based on GuruFocus' analysis, Luks Group (Vietnam Holdings) Co stock appears to be overvalued.
The current stock price of €0.08 is trading 18.6% above its estimated GF Value™ of €0.07.
Key valuation signals for STU:LU4:
Operating Margin %: 19.16% (28% above median its 10-year median of 15.01)
GF Value™: €0.07 vs. price of €0.08 (18.6% above fair value)
Industry Position: 150.8% above the Building Materials median (#58 of 405)
No single metric tells the full story. See the STU:LU4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luks Group (Vietnam Holdings) Co Business Description
Luks Group (Vietnam Holdings) Co Ltd, along with its subsidiaries, operates in the following reportable segments: Cement products, Property investment, Hotel operation, Property development, and Corporate and others. Maximum revenue is derived from the Property investment segment, which invests in industrial, commercial, and residential premises for rental income and provides property management and related services. The Cement products segment manufactures and sells cement products for use in the construction industry; the Hotel operation segment represents the Group's hotel business; and the Properties development business is engaged in the development and sale of properties. Geographically, the Group generates maximum revenue from Vietnam, followed by Hong Kong and the Chinese Mainland.
48GF Score
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