Balfour BeattyBAFBF 77 Operating Margin % is 1.99% as of Dec. 2025, which is 67% above its 10-year median of 1.19. GuruFocus rates BAFBF with a GF Score™ of 77/100 and a GF Value™ of $7.08 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,767 Construction companies, Balfour Beatty ranks worse than 71.25% 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.
Balfour Beatty Operating Margin % Related Terms
Balfour Beatty Operating Margin % Historical Data
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The historical data trend for Balfour Beatty'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.
BAFBF vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Balfour Beatty'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.
Balfour Beatty Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Balfour Beatty's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Balfour Beatty'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.
Balfour Beatty'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.
Balfour Beatty (BAFBF) has a Operating Margin % of 1.99% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Balfour Beatty and its competitors. This is 67% above median its historical median of 1.19. According to the industry distribution chart, Balfour Beatty ranks #1259 out of 1767 companies in the Construction industry, placing it in the top 71.3%.
Is Balfour Beatty's Operating Margin % too high?
Balfour Beatty's current Operating Margin % of 1.99% is 67% above median its 10-year median of 1.19. The Construction industry median Operating Margin % is 5.89. Balfour Beatty's value of 1.99% is 66.2% below this industry median. Based on the distribution chart, Balfour Beatty ranks #1259 out of 1767 companies in the Construction industry, which is below the industry midpoint. Overall, Balfour Beatty has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Balfour Beatty's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Balfour Beatty ranks #1259 out of 1767 companies for Operating Margin %. This places Balfour Beatty in the lower half of its industry. The industry median Operating Margin % is 5.89. Balfour Beatty's value of 1.99% is 66.2% below this benchmark. While the company's 10-year median is 1.19 vs. the industry median of 5.89, Balfour Beatty 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 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. Balfour Beatty's current Operating Margin % of 1.99% is 66.2% 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 Balfour Beatty 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. Balfour Beatty's current Operating Margin % is 1.99%, which is 67% above median its own 10-year median of 1.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Balfour Beatty stock overvalued right now?
Based on GuruFocus' analysis, Balfour Beatty (BAFBF) is currently considered Significantly Overvalued. The stock's GF Value™ is $7.08, compared to a current price of $10.56 — trading 49.2% above its estimated fair value. The current Operating Margin % is 1.99%, which is 67% above median its 10-year median of 1.19 and 66.2% below the Construction industry median of 5.89. Balfour Beatty's overall GF Score™ is 77/100 with 7 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 Balfour Beatty (BAFBF), the current Operating Margin % is 1.99% 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 Balfour Beatty (BAFBF) Overvalued in 2026?
Based on GuruFocus' analysis, Balfour Beatty stock appears to be overvalued.
The current stock price of $10.56 is trading 49.2% above its estimated GF Value™ of $7.08.
GuruFocus considers Balfour Beatty to be Significantly Overvalued.
Key valuation signals for BAFBF:
Operating Margin %: 1.99% (67% above median its 10-year median of 1.19)
GF Value™: $7.08 vs. price of $10.56 (49.2% above fair value)
Industry Position: 66.2% below the Construction median (#1259 of 1767)
No single metric tells the full story. See the BAFBF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Balfour Beatty PLC finances builds, and maintains infrastructure projects. It finances, develops, builds, maintains, and operates the increasingly complex and critical infrastructure that supports national economies and delivers projects at the heart of local communities. It operates three business segments: Construction services (majority of total revenue), Support services, and Infrastructure investments. It will invest directly in infrastructure assets also invests in real estate-type assets, in particular private residential and student accommodation assets. The majority of sales are derived from the United Kingdom and the United States.
77GF Score
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