FortescueASX:FMG -0.10%78 Operating Margin % is 34.47% as of Dec. 2025, which is 26% below its 10-year median of 46.71. GuruFocus rates ASX:FMG with a GF Score™ of 78/100 and a GF Value™ of A$19.97 (Fairly Valued). The stock has 6 warning signs investors should review. Among 841 Metals & Mining companies, Fortescue ranks better than 81.21% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Fortescue's Operating Income for the
six
months ended in Dec. 2025 was A$4,378 Mil. Fortescue's Revenue for the
six
months ended in Dec. 2025 was A$12,701 Mil. Therefore, Fortescue's Operating Margin % for the quarter that ended in Dec. 2025 was 34.47%.
Warning Sign:
Fortescue Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -10.2%.
The historical rank and industry rank for Fortescue's Operating Margin % or its related term are showing as below:
ASX:FMG'
s Operating Margin % Range Over the Past 10 Years
Min: 24.1 Med: 46.71 Max: 67.9
Current: 33.51
ASX:FMG's Operating Margin % is ranked better than 81.21% of 841
companies
in the Metals & Mining industry
Industry Median: 5.72
vs ASX:FMG: 33.51
Fortescue's 5-Year Average Operating Margin % Growth Rate was -10.20% per year.
Fortescue's Operating Income for the
six
months ended in Dec. 2025 was A$4,378 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$8,263 Mil.
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.
Fortescue Operating Margin % Related Terms
Fortescue Operating Margin % Historical Data
* Premium members only.
The historical data trend for Fortescue'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 Industrial Metals & Mining subindustry, Fortescue'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.
Fortescue Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Fortescue's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fortescue'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.
Fortescue's Operating Margin % for the fiscal year that ended in Jun. 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.
Fortescue (ASX:FMG) has a Operating Margin % of 34.47% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Fortescue and its competitors. This is 26% below median its historical median of 46.71. Over the past decade, Fortescue's Operating Margin % has ranged from 24.10 to 67.90. According to the industry distribution chart, Fortescue ranks #158 out of 841 companies in the Metals & Mining industry, placing it in the top 18.8%.
Is Fortescue's Operating Margin % too high?
Fortescue's current Operating Margin % of 34.47% is 26% below median its 10-year median of 46.71. Over the past 10 years, this metric has ranged from a low of 24.10 to a high of 67.90. The Metals & Mining industry median Operating Margin % is 5.72. Fortescue's value of 34.47% is 502.6% above this industry median. Based on the distribution chart, Fortescue ranks #158 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, Fortescue has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fortescue's Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, Fortescue ranks #158 out of 841 companies for Operating Margin %. This places Fortescue in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.72. Fortescue's value of 34.47% is 502.6% above this benchmark. Historically, Fortescue's own Operating Margin % has ranged from 24.10 to 67.90 over the past decade. While the company's 10-year median is 46.71 vs. the industry median of 5.72, Fortescue 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 5.72, based on 841 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. Fortescue's current Operating Margin % of 34.47% is 502.6% 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 Fortescue and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortescue's current Operating Margin % is 34.47%, which is 26% below median its own 10-year median of 46.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortescue stock overvalued right now?
Based on GuruFocus' analysis, Fortescue (ASX:FMG) is currently considered Fairly Valued. The stock's GF Value™ is A$19.97, compared to a current price of A$19.25 — trading 3.6% below its estimated fair value. The current Operating Margin % is 34.47%, which is 26% below median its 10-year median of 46.71 and 502.6% above the Metals & Mining industry median of 5.72. Fortescue's overall GF Score™ is 78/100 with 6 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 Fortescue (ASX:FMG), the current Operating Margin % is 34.47% 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 Fortescue (ASX:FMG) Overvalued in 2026?
Based on GuruFocus' analysis, Fortescue stock appears to be undervalued.
The current stock price of A$19.25 is trading 3.6% below its estimated GF Value™ of A$19.97.
GuruFocus considers Fortescue to be Fairly Valued.
Key valuation signals for ASX:FMG:
Operating Margin %: 34.47% (26% below median its 10-year median of 46.71)
GF Value™: A$19.97 vs. price of A$19.25 (3.6% below fair value)
Industry Position: 502.6% above the Metals & Mining median (#158 of 841)
No single metric tells the full story. See the ASX:FMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fortescue is an Australia-based iron ore miner. It has grown from obscurity at the start of 2008 to become the world's fourth-largest producer. Growth was fueled by debt, now repaid. Expansion from 55 million metric tons in fiscal 2012 to about 195 million metric tons in 2025 means Fortescue supplies around 10% of global seaborne iron ore. Further expansion to about 210 million metric tons is likely once its 22 million metric ton Iron Bridge magnetite mine ramps up, likely in 2028. However, with longer-term demand likely to decline as China's economy matures, its future margins are likely to be below historical averages. More recently, Fortescue diversified into copper and green energy. It has big ambitions here, but its efforts are at an early stage.
78GF Score
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