The Swatch Group AGSWGAF 71 Operating Margin % is 2.08% as of Dec. 2025, which is 83% below its 10-year median of 12.48. GuruFocus rates SWGAF with a GF Score™ of 71/100 and a GF Value™ of $171.66 (Significantly Overvalued). The stock has 10 warning signs investors should review. Among 1,128 Retail - Cyclical companies, The Swatch Group AG ranks worse than 61.79% on this metric.
The Swatch Group AG (OTCPK:SWGAF) 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 Swatch Group AG Operating Margin % Related Terms
The Swatch Group AG Operating Margin % Historical Data
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The historical data trend for The Swatch Group AG'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 Luxury Goods subindustry, The Swatch Group AG'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 Swatch Group AG Operating Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, The Swatch Group AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Swatch Group AG's Operating Margin % falls into.
The Swatch Group AG 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 Swatch Group AG'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 Swatch Group AG (SWGAF) has a Operating Margin % of 2.08% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on The Swatch Group AG and its competitors. This is 83% below median its historical median of 12.48. Over the past decade, The Swatch Group AG's Operating Margin % has ranged from 0.93 to 15.44. According to the industry distribution chart, The Swatch Group AG ranks #697 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 61.8%.
Is The Swatch Group AG's Operating Margin % too high?
The Swatch Group AG's current Operating Margin % of 2.08% is 83% below median its 10-year median of 12.48. Over the past 10 years, this metric has ranged from a low of 0.93 to a high of 15.44. The Retail - Cyclical industry median Operating Margin % is 3.91. The Swatch Group AG's value of 2.08% is 46.7% below this industry median. Based on the distribution chart, The Swatch Group AG ranks #697 out of 1128 companies in the Retail - Cyclical industry, which is below the industry midpoint. Overall, The Swatch Group AG has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does The Swatch Group AG's Operating Margin % compare to TPR and SIG?
According to the Retail - Cyclical industry distribution chart, The Swatch Group AG ranks #697 out of 1128 companies for Operating Margin %. This places The Swatch Group AG in the lower half of its industry. The industry median Operating Margin % is 3.91. The Swatch Group AG's value of 2.08% is 46.7% below this benchmark. Historically, The Swatch Group AG's own Operating Margin % has ranged from 0.93 to 15.44 over the past decade. While the company's 10-year median is 12.48 vs. the industry median of 3.91, The Swatch Group AG has consistently been below 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 Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 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 Swatch Group AG's current Operating Margin % of 2.08% is 46.7% below 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 Swatch Group AG and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Swatch Group AG's current Operating Margin % is 2.08%, which is 83% below median its own 10-year median of 12.48. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Swatch Group AG stock overvalued right now?
Based on GuruFocus' analysis, The Swatch Group AG (SWGAF) is currently considered Significantly Overvalued. The stock's GF Value™ is $171.66, compared to a current price of $257.43 — trading 50% above its estimated fair value. The current Operating Margin % is 2.08%, which is 83% below median its 10-year median of 12.48 and 46.7% below the Retail - Cyclical industry median of 3.91. The Swatch Group AG'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 The Swatch Group AG (SWGAF), the current Operating Margin % is 2.08% 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 The Swatch Group AG (SWGAF) Overvalued in 2026?
Based on GuruFocus' analysis, The Swatch Group AG stock appears to be overvalued.
The current stock price of $257.43 is trading 50% above its estimated GF Value™ of $171.66.
GuruFocus considers The Swatch Group AG to be Significantly Overvalued.
Key valuation signals for SWGAF:
Operating Margin %: 2.08% (83% below median its 10-year median of 12.48)
GF Value™: $171.66 vs. price of $257.43 (50% above fair value)
Industry Position: 46.7% below the Retail - Cyclical median (#697 of 1128)
No single metric tells the full story. See the SWGAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Swatch Group's biggest brands are Omega (number two or three in its category), Breguet, Tissot (the leader in midrange Swiss watches), and Swatch. The company employs over 32,000 people, half of them in Switzerland. We estimate Omega and Longines to be the group's most profitable brands.
71GF 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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