Summit RoyaltiesSUMMF +0.60%19 Operating Margin % is 71.00% as of Mar. 2026, which is 6% above its 10-year median of 66.80. GuruFocus rates SUMMF with a GF Score™ of 19/100. The stock has 1 warning sign investors should review. Among 840 Metals & Mining companies, Summit Royalties ranks better than 97.74% 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.
Summit Royalties Operating Margin % Related Terms
Summit Royalties Operating Margin % Historical Data
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The historical data trend for Summit Royalties'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 Other Precious Metals & Mining subindustry, Summit Royalties'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.
Summit Royalties Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Summit Royalties's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Summit Royalties'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.
Summit Royalties'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.
Summit Royalties (SUMMF) has a Operating Margin % of 71.00% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Summit Royalties and its competitors. This is near median its historical median of 66.80. Over the past decade, Summit Royalties' Operating Margin % has ranged from 66.80 to 70.66. According to the industry distribution chart, Summit Royalties ranks #19 out of 840 companies in the Metals & Mining industry, placing it in the top 2.3%.
Is Summit Royalties' Operating Margin % too high?
Summit Royalties' current Operating Margin % of 71.00% is near median its 10-year median of 66.80. Over the past 10 years, this metric has ranged from a low of 66.80 to a high of 70.66. The Metals & Mining industry median Operating Margin % is 5.86. Summit Royalties' value of 71.00% is 1111.6% above this industry median. Based on the distribution chart, Summit Royalties ranks #19 out of 840 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Summit Royalties has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Summit Royalties' Operating Margin % compare to HL?
According to the Metals & Mining industry distribution chart, Summit Royalties ranks #19 out of 840 companies for Operating Margin %. This places Summit Royalties in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.86. Summit Royalties' value of 71.00% is 1111.6% above this benchmark. Historically, Summit Royalties' own Operating Margin % has ranged from 66.80 to 70.66 over the past decade. While the company's 10-year median is 66.80 vs. the industry median of 5.86, Summit Royalties 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.86, based on 840 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. Summit Royalties's current Operating Margin % of 71.00% is 1111.6% 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 Summit Royalties and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Summit Royalties's current Operating Margin % is 71.00%, which is near median its own 10-year median of 66.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Summit Royalties stock overvalued right now?
Summit Royalties (SUMMF) has a current Operating Margin % of 71.00%. The current Operating Margin % is 71.00%, which is near median its 10-year median of 66.80 and 1111.6% above the Metals & Mining industry median of 5.86. Summit Royalties' overall GF Score™ is 19/100 with 1 warning sign 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 Summit Royalties (SUMMF), the current Operating Margin % is 71.00% 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.
Summit Royalties Ltd is a precious metals royalty and streaming company. Its current portfolio is anchored by cash-flowing production, with additional royalties on development- and exploration-stage properties. The group intends to become the next mid-tier royalty and streaming company by executing actionable, accretive acquisitions that increase production and drive cash flow growth. The company manages its business under a single operating segment, which is the ownership and acquisition of precious metal royalty and mineral streaming interests. Geographically, the company operates in Africa; Canada, which derives maximum revenue; Columbia; and Brazil.
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