Simple Mart Retail CoTPE:2945 80 Operating Margin % is 1.28% as of Dec. 2025, which is 2% above its 10-year median of 1.26. GuruFocus rates TPE:2945 with a GF Score™ of 80/100 and a GF Value™ of NT$43.09 (Fairly Valued). The stock has 4 warning signs investors should review. Among 310 Retail - Defensive companies, Simple Mart Retail Co ranks worse than 74.19% on this metric.
Simple Mart Retail Co (TPE:2945) 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.
Simple Mart Retail Co Operating Margin % Related Terms
Simple Mart Retail Co Operating Margin % Historical Data
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The historical data trend for Simple Mart Retail Co'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.
TPE:2945 vs KR, SFM, ACI: Operating Margin % Comparison
For the Grocery Stores subindustry, Simple Mart Retail 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.
Simple Mart Retail Co Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, Simple Mart Retail Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Simple Mart Retail Co's Operating Margin % falls into.
Simple Mart Retail 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.
Simple Mart Retail Co'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.
Simple Mart Retail Co (TPE:2945) has a Operating Margin % of 1.28% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Simple Mart Retail Co and its competitors. This is near median its historical median of 1.26. Over the past decade, Simple Mart Retail Co's Operating Margin % has ranged from 0.28 to 1.90. According to the industry distribution chart, Simple Mart Retail Co ranks #230 out of 310 companies in the Retail - Defensive industry, placing it in the top 74.2%.
Is Simple Mart Retail Co's Operating Margin % too high?
Simple Mart Retail Co's current Operating Margin % of 1.28% is near median its 10-year median of 1.26. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 1.90. The Retail - Defensive industry median Operating Margin % is 3.28. Simple Mart Retail Co's value of 1.28% is 60.9% below this industry median. Based on the distribution chart, Simple Mart Retail Co ranks #230 out of 310 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, Simple Mart Retail Co has a GF Score™ of 80/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Simple Mart Retail Co's Operating Margin % compare to KR and SFM?
According to the Retail - Defensive industry distribution chart, Simple Mart Retail Co ranks #230 out of 310 companies for Operating Margin %. This places Simple Mart Retail Co in the lower half of its industry. The industry median Operating Margin % is 3.28. Simple Mart Retail Co's value of 1.28% is 60.9% below this benchmark. Historically, Simple Mart Retail Co's own Operating Margin % has ranged from 0.28 to 1.90 over the past decade. While the company's 10-year median is 1.26 vs. the industry median of 3.28, Simple Mart Retail Co 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 - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 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. Simple Mart Retail Co's current Operating Margin % of 1.28% is 60.9% 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 Simple Mart Retail Co and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Simple Mart Retail Co's current Operating Margin % is 1.28%, which is near median its own 10-year median of 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Simple Mart Retail Co stock overvalued right now?
Based on GuruFocus' analysis, Simple Mart Retail Co (TPE:2945) is currently considered Fairly Valued. The stock's GF Value™ is NT$43.09, compared to a current price of NT$43.35 — trading 0.6% above its estimated fair value. The current Operating Margin % is 1.28%, which is near median its 10-year median of 1.26 and 60.9% below the Retail - Defensive industry median of 3.28. Simple Mart Retail Co's overall GF Score™ is 80/100 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 Simple Mart Retail Co (TPE:2945), the current Operating Margin % is 1.28% 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 Simple Mart Retail Co (TPE:2945) Overvalued in 2026?
Based on GuruFocus' analysis, Simple Mart Retail Co stock appears to be overvalued.
The current stock price of NT$43.35 is trading 0.6% above its estimated GF Value™ of NT$43.09.
GuruFocus considers Simple Mart Retail Co to be Fairly Valued.
Key valuation signals for TPE:2945:
Operating Margin %: 1.28% (near median its 10-year median of 1.26)
GF Value™: NT$43.09 vs. price of NT$43.35 (0.6% above fair value)
Industry Position: 60.9% below the Retail - Defensive median (#230 of 310)
No single metric tells the full story. See the TPE:2945 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Simple Mart Retail Co Ltd operates a retail chain of stores in Taiwan. The group has two reportable segments which mainly engage in selling daily commodities to customers; while the other segment engages in home shopping, health supplements, over-the-counter medicines, cosmetics, and organic products, as well as retail business on pet food and supplies.
80GF 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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