Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Capstone HoldingCAPS -1.68%23 Operating Margin % is -11.85% as of Mar. 2026. GuruFocus rates CAPS with a GF Score™ of 23/100 and a GF Value™ of $0.11 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 403 Building Materials companies, Capstone Holding ranks worse than 88.09% 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.
Capstone Holding Operating Margin % Related Terms
Capstone Holding Operating Margin % Historical Data
* Premium members only.
The historical data trend for Capstone Holding'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.
CAPS vs BASA, CRH, VMC: Operating Margin % Comparison
For the Building Materials subindustry, Capstone Holding'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.
Capstone Holding Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Capstone Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Capstone Holding'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.
Capstone Holding'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.
Capstone Holding (CAPS) has a Operating Margin % of -11.85% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Capstone Holding and its competitors. According to the industry distribution chart, Capstone Holding ranks #355 out of 403 companies in the Building Materials industry, placing it in the top 88.1%.
Is Capstone Holding's Operating Margin % too high?
Capstone Holding's current Operating Margin % is -11.85%. Based on the distribution chart, Capstone Holding ranks #355 out of 403 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, Capstone Holding has a GF Score™ of 23/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capstone Holding's Operating Margin % compare to BASA and CRH?
According to the Building Materials industry distribution chart, Capstone Holding ranks #355 out of 403 companies for Operating Margin %. This places Capstone Holding in the lower half of its industry. The industry median Operating Margin % is 7.62. 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.62, based on 403 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. 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 Capstone Holding and its competitors. For the Building Materials industry, the median Operating Margin % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capstone Holding's current Operating Margin % is -11.85%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capstone Holding stock overvalued right now?
Based on GuruFocus' analysis, Capstone Holding (CAPS) is currently considered Significantly Overvalued. The stock's GF Value™ is $0.11, compared to a current price of $0.26 — trading 140% above its estimated fair value. The current Operating Margin % is -11.85%. Capstone Holding's overall GF Score™ is 23/100 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 Capstone Holding (CAPS), the current Operating Margin % is -11.85% 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 Capstone Holding (CAPS) Overvalued in 2026?
Based on GuruFocus' analysis, Capstone Holding stock appears to be overvalued.
The current stock price of $0.26 is trading 140% above its estimated GF Value™ of $0.11.
GuruFocus considers Capstone Holding to be Significantly Overvalued.
Key valuation signals for CAPS:
Operating Margin %: -11.85%
GF Value™: $0.11 vs. price of $0.26 (140% above fair value)
No single metric tells the full story. See the CAPS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capstone Holding Corp is a national, technology-enabled building products distribution and installation platform. The Company has two reportable segments: (i) the TotalStone segment, which includes the operations of TotalStone, LLC and Canadian Stone Industries, and (ii) the Carolina Stone segment, which includes the operations of Carolina Stone Distributors. Both segments are engaged in the distribution and fabrication of natural and manufactured stone and related building products.
23GF Score
Get the complete analysis for CAPS
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
CAPS has been successfully added to your 
