The One Group Hospitality (STU:XZ9) 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.
The One Group Hospitality Operating Margin % Related Terms
The One Group Hospitality 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.
The One Group Hospitality Operating Margin % Chart
STU:XZ9 vs BDL, THCH, NDLS: Operating Margin % Comparison
For the Restaurants subindustry, The One Group Hospitality'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.
The One Group Hospitality Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The One Group Hospitality's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The One Group Hospitality's Operating Margin % falls into.
The One Group Hospitality 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.
The One Group Hospitality'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.
The One Group Hospitality (STU:XZ9) has a Operating Margin % of 8.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The One Group Hospitality and its competitors. This is 60% above median its historical median of 5.21. According to the industry distribution chart, The One Group Hospitality ranks #171 out of 364 companies in the Restaurants industry, placing it in the top 47%.
Is The One Group Hospitality's Operating Margin % too high?
The One Group Hospitality's current Operating Margin % of 8.36% is 60% above median its 10-year median of 5.21. The Restaurants industry median Operating Margin % is 4.37. The One Group Hospitality's value of 8.36% is 91.5% above this industry median. Based on the distribution chart, The One Group Hospitality ranks #171 out of 364 companies in the Restaurants industry, which is above the industry midpoint. Overall, The One Group Hospitality has a GF Score™ of 75/100, reflecting its overall financial health beyond just this single metric.
How does The One Group Hospitality's Operating Margin % compare to BDL and THCH?
According to the Restaurants industry distribution chart, The One Group Hospitality ranks #171 out of 364 companies for Operating Margin %. This puts The One Group Hospitality in the upper half of its industry. The industry median Operating Margin % is 4.37. The One Group Hospitality's value of 8.36% is 91.5% above this benchmark. While the company's 10-year median is 5.21 vs. the industry median of 4.37, The One Group Hospitality 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.37, based on 364 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. The One Group Hospitality's current Operating Margin % of 8.36% is 91.5% 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 The One Group Hospitality and its competitors. For the Restaurants industry, the median Operating Margin % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The One Group Hospitality's current Operating Margin % is 8.36%, which is 60% above median its own 10-year median of 5.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The One Group Hospitality stock overvalued right now?
The One Group Hospitality (STU:XZ9) has a current Operating Margin % of 8.36%. The stock's GF Value™ is €4.88, compared to a current price of €1.71 — trading 65% below its estimated fair value. The current Operating Margin % is 8.36%, which is 60% above median its 10-year median of 5.21 and 91.5% above the Restaurants industry median of 4.37. The One Group Hospitality's overall GF Score™ is 75/100 with 7 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 The One Group Hospitality (STU:XZ9), the current Operating Margin % is 8.36% 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 The One Group Hospitality (STU:XZ9) Overvalued in 2026?
Based on GuruFocus' analysis, The One Group Hospitality stock appears to be undervalued.
The current stock price of €1.71 is trading 65% below its estimated GF Value™ of €4.88.
Key valuation signals for STU:XZ9:
Operating Margin %: 8.36% (60% above median its 10-year median of 5.21)
GF Value™: €4.88 vs. price of €1.71 (65% below fair value)
Industry Position: 91.5% above the Restaurants median (#171 of 364)
No single metric tells the full story. See the STU:XZ9 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The One Group Hospitality Inc is a restaurant company that develops, owns and operates, manages and licenses upscale and polished casual, high-energy restaurants and lounges and provides turn-key food and beverage (F&B) services for hospitality venues, including hotels, casinos, and other high-end locations internationally. The company operates through three segments: STK, Benihana and Grill Concepts. The company generates the vast majority of its revenue from the domestic market.
75GF Score
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