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Swire PacificSTU:SWI +2.28%71 Operating Margin % is 12.57% as of Jun. 2026, which is 4% above its 10-year median of 12.09. GuruFocus rates STU:SWI with a GF Score™ of 71/100 and a GF Value™ of €3.04 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 538 Conglomerates companies, Swire Pacific ranks better than 73.23% on this metric.
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.
Swire Pacific Operating Margin % Related Terms
Swire Pacific Operating Margin % Historical Data
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The historical data trend for Swire Pacific'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.
STU:SWI vs MMM, HON: Operating Margin % Comparison
For the Conglomerates subindustry, Swire Pacific'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.
Swire Pacific Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Swire Pacific's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Swire Pacific'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.
Swire Pacific's Operating Margin % for the fiscal year that ended in Dec. 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.
Swire Pacific (STU:SWI) has a Operating Margin % of 12.57% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Swire Pacific and its competitors. This is near median its historical median of 12.09. Over the past decade, Swire Pacific's Operating Margin % has ranged from 11.68 to 14.78. According to the industry distribution chart, Swire Pacific ranks #144 out of 538 companies in the Conglomerates industry, placing it in the top 26.8%.
Is Swire Pacific's Operating Margin % too high?
Swire Pacific's current Operating Margin % of 12.57% is near median its 10-year median of 12.09. Over the past 10 years, this metric has ranged from a low of 11.68 to a high of 14.78. The Conglomerates industry median Operating Margin % is 5.85. Swire Pacific's value of 12.57% is 115.1% above this industry median. Based on the distribution chart, Swire Pacific ranks #144 out of 538 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Swire Pacific has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Swire Pacific's Operating Margin % compare to MMM and HON?
According to the Conglomerates industry distribution chart, Swire Pacific ranks #144 out of 538 companies for Operating Margin %. This puts Swire Pacific in the upper half of its industry. The industry median Operating Margin % is 5.85. Swire Pacific's value of 12.57% is 115.1% above this benchmark. Historically, Swire Pacific's own Operating Margin % has ranged from 11.68 to 14.78 over the past decade. While the company's 10-year median is 12.09 vs. the industry median of 5.85, Swire Pacific 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.85, based on 538 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. Swire Pacific's current Operating Margin % of 12.57% is 115.1% 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 Swire Pacific and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Swire Pacific's current Operating Margin % is 12.57%, which is near median its own 10-year median of 12.09. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Swire Pacific stock overvalued right now?
Based on GuruFocus' analysis, Swire Pacific (STU:SWI) is currently considered Significantly Overvalued. The stock's GF Value™ is €3.04, compared to a current price of €10.77 — trading 254.3% above its estimated fair value. The current Operating Margin % is 12.57%, which is near median its 10-year median of 12.09 and 115.1% above the Conglomerates industry median of 5.85. Swire Pacific's overall GF Score™ is 71/100 with 10 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 Swire Pacific (STU:SWI), the current Operating Margin % is 12.57% as of Jun. 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 Swire Pacific (STU:SWI) Overvalued in 2026?
Based on GuruFocus' analysis, Swire Pacific stock appears to be overvalued.
The current stock price of €10.77 is trading 254.3% above its estimated GF Value™ of €3.04.
GuruFocus considers Swire Pacific to be Significantly Overvalued.
Key valuation signals for STU:SWI:
Operating Margin %: 12.57% (near median its 10-year median of 12.09)
GF Value™: €3.04 vs. price of €10.77 (254.3% above fair value)
Industry Position: 115.1% above the Conglomerates median (#144 of 538)
No single metric tells the full story. See the STU:SWI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swire Pacific is a Hong Kong-based conglomerate with interests in property, aviation, beverage, trading, and industrials. The property division, an 82% stake in Swire Properties, contributes more than half of the group's operating profit. The beverage division is one of two Coca-Cola bottlers in mainland China and also a bottler in Hong Kong, Taiwan, Thailand, Laos, Vietnam, and Cambodia. The aviation division consists of Haeco, an aircraft engineering company, and a 45% stake in Cathay Pacific. John Swire & Sons, the parent company, holds a 64% stake in Swire Pacific but has 71% of the voting rights through a dual-class share structure.
71GF Score
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