Chemring GroupCMGMF +4.44%83 Operating Margin % is 9.14% as of Apr. 2026, which is 13% below its 10-year median of 10.56. GuruFocus rates CMGMF with a GF Score™ of 83/100 and a GF Value™ of $6.10 (Fairly Valued). The stock has 4 warning signs investors should review. Among 347 Aerospace & Defense companies, Chemring Group ranks better than 72.05% on this metric.
Chemring Group (OTCPK:CMGMF) 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.
Chemring Group Operating Margin % Related Terms
Chemring Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Chemring Group'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.
CMGMF vs GE, RTX, BA: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Chemring Group'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.
Chemring Group Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chemring Group'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.
Chemring Group's Operating Margin % for the fiscal year that ended in Oct. 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.
Chemring Group (CMGMF) has a Operating Margin % of 9.14% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chemring Group and its competitors. This is 13% below median its historical median of 10.56. According to the industry distribution chart, Chemring Group ranks #97 out of 347 companies in the Aerospace & Defense industry, placing it in the top 28%.
Is Chemring Group's Operating Margin % too high?
Chemring Group's current Operating Margin % of 9.14% is 13% below median its 10-year median of 10.56. The Aerospace & Defense industry median Operating Margin % is 7.75. Chemring Group's value of 9.14% is 17.9% above this industry median. Based on the distribution chart, Chemring Group ranks #97 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Chemring Group has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Operating Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #97 out of 347 companies for Operating Margin %. This puts Chemring Group in the upper half of its industry. The industry median Operating Margin % is 7.75. Chemring Group's value of 9.14% is 17.9% above this benchmark. While the company's 10-year median is 10.56 vs. the industry median of 7.75, Chemring Group 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 an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 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. Chemring Group's current Operating Margin % of 9.14% is 17.9% 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 Chemring Group and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current Operating Margin % is 9.14%, which is 13% below median its own 10-year median of 10.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (CMGMF) is currently considered Fairly Valued. The stock's GF Value™ is $6.10, compared to a current price of $6.71 — trading 10% above its estimated fair value. The current Operating Margin % is 9.14%, which is 13% below median its 10-year median of 10.56 and 17.9% above the Aerospace & Defense industry median of 7.75. Chemring Group's overall GF Score™ is 83/100 with 4 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 Chemring Group (CMGMF), the current Operating Margin % is 9.14% as of Apr. 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 Chemring Group (CMGMF) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of $6.71 is trading 10% above its estimated GF Value™ of $6.10.
GuruFocus considers Chemring Group to be Fairly Valued.
Key valuation signals for CMGMF:
Operating Margin %: 9.14% (13% below median its 10-year median of 10.56)
GF Value™: $6.10 vs. price of $6.71 (10% above fair value)
Industry Position: 17.9% above the Aerospace & Defense median (#97 of 347)
No single metric tells the full story. See the CMGMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
83GF Score
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