Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC) 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.
Ras AL Khaimah Ceramics Co PSC Operating Margin % Related Terms
Ras AL Khaimah Ceramics Co PSC 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.
Ras AL Khaimah Ceramics Co PSC Operating Margin % Chart
ADX:RAKCEC vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Ras AL Khaimah Ceramics Co PSC'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.
Ras AL Khaimah Ceramics Co PSC Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Ras AL Khaimah Ceramics Co PSC's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ras AL Khaimah Ceramics Co PSC's Operating Margin % falls into.
Ras AL Khaimah Ceramics Co PSC 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.
* 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.
Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC) has a Operating Margin % of 9.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ras AL Khaimah Ceramics Co PSC and its competitors. This is near median its historical median of 10.01. Over the past decade, Ras AL Khaimah Ceramics Co PSC's Operating Margin % has ranged from 5.74 to 12.21. According to the industry distribution chart, Ras AL Khaimah Ceramics Co PSC ranks #449 out of 1767 companies in the Construction industry, placing it in the top 25.4%.
Is Ras AL Khaimah Ceramics Co PSC's Operating Margin % too high?
Ras AL Khaimah Ceramics Co PSC's current Operating Margin % of 9.08% is near median its 10-year median of 10.01. Over the past 10 years, this metric has ranged from a low of 5.74 to a high of 12.21. The Construction industry median Operating Margin % is 5.89. Ras AL Khaimah Ceramics Co PSC's value of 9.08% is 54.2% above this industry median. Based on the distribution chart, Ras AL Khaimah Ceramics Co PSC ranks #449 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Ras AL Khaimah Ceramics Co PSC has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ras AL Khaimah Ceramics Co PSC's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Ras AL Khaimah Ceramics Co PSC ranks #449 out of 1767 companies for Operating Margin %. This puts Ras AL Khaimah Ceramics Co PSC in the upper half of its industry. The industry median Operating Margin % is 5.89. Ras AL Khaimah Ceramics Co PSC's value of 9.08% is 54.2% above this benchmark. Historically, Ras AL Khaimah Ceramics Co PSC's own Operating Margin % has ranged from 5.74 to 12.21 over the past decade. While the company's 10-year median is 10.01 vs. the industry median of 5.89, Ras AL Khaimah Ceramics Co PSC 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Ras AL Khaimah Ceramics Co PSC's current Operating Margin % of 9.08% is 54.2% 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 Ras AL Khaimah Ceramics Co PSC and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ras AL Khaimah Ceramics Co PSC's current Operating Margin % is 9.08%, which is near median its own 10-year median of 10.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ras AL Khaimah Ceramics Co PSC stock overvalued right now?
Based on GuruFocus' analysis, Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC) is currently considered Fairly Valued. The stock's GF Value™ is د.إ2.49, compared to a current price of د.إ2.40 — trading 3.6% below its estimated fair value. The current Operating Margin % is 9.08%, which is near median its 10-year median of 10.01 and 54.2% above the Construction industry median of 5.89. Ras AL Khaimah Ceramics Co PSC's overall GF Score™ is 79/100 with 5 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 Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC), the current Operating Margin % is 9.08% 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 Ras AL Khaimah Ceramics Co PSC (ADX:RAKCEC) Overvalued in 2026?
Based on GuruFocus' analysis, Ras AL Khaimah Ceramics Co PSC stock appears to be undervalued.
The current stock price of د.إ2.40 is trading 3.6% below its estimated GF Value™ of د.إ2.49.
GuruFocus considers Ras AL Khaimah Ceramics Co PSC to be Fairly Valued.
Key valuation signals for ADX:RAKCEC:
Operating Margin %: 9.08% (near median its 10-year median of 10.01)
GF Value™: د.إ2.49 vs. price of د.إ2.40 (3.6% below fair value)
Industry Position: 54.2% above the Construction median (#449 of 1767)
No single metric tells the full story. See the ADX:RAKCEC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ras AL Khaimah Ceramics Co PSC Business Description
Ras AL Khaimah Ceramics Co PSC is engaged in the manufacturing & sale of a variety of ceramic products, including tiles, bathroom sets, sanitary wares, table wares, & faucets. The company's reportable segments are: Ceramics products, which generate key revenue & include the manufacturing & sale of ceramic wall and floor tiles, gres porcellanato, bath-ware, & tableware products. The Faucets segment includes the manufacturing & sale of Taps & Faucets. Other industrial segments include manufacturing & distribution of power, paints, plastics, mines, & chemicals. Others include security services, material movement, real estate, construction projects, & civil works. Geographically, the company generates substantial revenue from the UAE, Europe, India, Saudi Arabia, Bangladesh, & Other countries.
79GF 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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