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.
Purity Flex Pack Operating Margin % Related Terms
Purity Flex Pack Operating Margin % Historical Data
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The historical data trend for Purity Flex Pack'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.
BOM:523315 vs SW, PKG, AMCR: Operating Margin % Comparison
For the Packaging & Containers subindustry, Purity Flex Pack'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.
Purity Flex Pack Operating Margin % vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, Purity Flex Pack's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Purity Flex Pack'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.
Purity Flex Pack's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Purity Flex Pack (BOM:523315) has a Operating Margin % of 5.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Purity Flex Pack and its competitors. This is 20% above median its historical median of 4.41. Over the past decade, Purity Flex Pack's Operating Margin % has ranged from 1.90 to 14.17.
Is Purity Flex Pack's Operating Margin % too high?
Purity Flex Pack's current Operating Margin % of 5.27% is 20% above median its 10-year median of 4.41. Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 14.17. The Packaging & Containers industry median Operating Margin % is 5.24. Purity Flex Pack's value of 5.27% is 0.6% above this industry median. Overall, Purity Flex Pack has a GF Score™ of 43/100, reflecting its overall financial health beyond just this single metric.
How does Purity Flex Pack's Operating Margin % compare to SW and PKG?
Purity Flex Pack's Operating Margin % of 5.27% can be compared against companies in the Packaging & Containers industry. The industry median Operating Margin % is 5.24. Purity Flex Pack's value of 5.27% is 0.6% above this benchmark. Historically, Purity Flex Pack's own Operating Margin % has ranged from 1.90 to 14.17 over the past decade. While the company's 10-year median is 4.41 vs. the industry median of 5.24, Purity Flex Pack 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 Packaging & Containers company?
The median Operating Margin % among Packaging & Containers companies is 5.24, based on 393 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. Purity Flex Pack's current Operating Margin % of 5.27% is 0.6% 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 Purity Flex Pack and its competitors. For the Packaging & Containers industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Purity Flex Pack's current Operating Margin % is 5.27%, which is 20% above median its own 10-year median of 4.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Purity Flex Pack stock overvalued right now?
Purity Flex Pack (BOM:523315) has a current Operating Margin % of 5.27%. The stock's GF Value™ is ₹0.86, compared to a current price of ₹0.78 — trading 9.3% below its estimated fair value. The current Operating Margin % is 5.27%, which is 20% above median its 10-year median of 4.41 and 0.6% above the Packaging & Containers industry median of 5.24. Purity Flex Pack's overall GF Score™ is 43/100 with 2 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 Purity Flex Pack (BOM:523315), the current Operating Margin % is 5.27% 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 Purity Flex Pack (BOM:523315) Overvalued in 2026?
Based on GuruFocus' analysis, Purity Flex Pack stock appears to be undervalued.
The current stock price of ₹0.78 is trading 9.3% below its estimated GF Value™ of ₹0.86.
Key valuation signals for BOM:523315:
Operating Margin %: 5.27% (20% above median its 10-year median of 4.41)
GF Value™: ₹0.86 vs. price of ₹0.78 (9.3% below fair value)
Industry Position: 0.6% above the Packaging & Containers median
No single metric tells the full story. See the BOM:523315 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Purity Flex Pack Ltd manufactures and sells flexible packaging solutions in India. Geographically, it derives a majority of its revenue from India. Its product portfolio includes Add-on(s); Speciality Application Pouch; Standard Pouches; and Printed/Unprinted Roll Stock. The company serves Sweets and Confectionery, Dairy and Frozen Foods, Rice, Pulses and Food Grains, Snack Foods, Spices, Salt, Tea, Tobacco, Pharmaceuticals, Personal Care and Hygiene, Contraceptives, Seeds and Fertilizer Pesticides and various other sectors. It has two geographic areas Within India and Outside India.
43GF 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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