Compass GroupCMPGF +0.06%88 Operating Margin % is 7.27% as of Mar. 2026, which is 3% above its 10-year median of 7.08. GuruFocus rates CMPGF with a GF Score™ of 88/100 and a GF Value™ of $40.47 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 365 Restaurants companies, Compass Group ranks better than 67.4% on this metric.
Compass Group (OTCPK:CMPGF) 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.
Compass Group Operating Margin % Related Terms
Compass Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Compass 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.
CMPGF vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Compass 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.
Compass Group Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Compass Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Compass 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.
Compass Group's Operating Margin % for the fiscal year that ended in Sep. 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.
Compass Group (CMPGF) has a Operating Margin % of 7.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Compass Group and its competitors. This is near median its historical median of 7.08. Over the past decade, Compass Group's Operating Margin % has ranged from 3.37 to 7.23. According to the industry distribution chart, Compass Group ranks #119 out of 365 companies in the Restaurants industry, placing it in the top 32.6%.
Is Compass Group's Operating Margin % too high?
Compass Group's current Operating Margin % of 7.27% is near median its 10-year median of 7.08. Over the past 10 years, this metric has ranged from a low of 3.37 to a high of 7.23. The Restaurants industry median Operating Margin % is 4.26. Compass Group's value of 7.27% is 70.7% above this industry median. Based on the distribution chart, Compass Group ranks #119 out of 365 companies in the Restaurants industry, which is above the industry midpoint. Overall, Compass Group has a GF Score™ of 88/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Compass Group's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Compass Group ranks #119 out of 365 companies for Operating Margin %. This puts Compass Group in the upper half of its industry. The industry median Operating Margin % is 4.26. Compass Group's value of 7.27% is 70.7% above this benchmark. Historically, Compass Group's own Operating Margin % has ranged from 3.37 to 7.23 over the past decade. While the company's 10-year median is 7.08 vs. the industry median of 4.26, Compass 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 a Restaurants company?
The median Operating Margin % among Restaurants companies is 4.26, based on 365 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. Compass Group's current Operating Margin % of 7.27% is 70.7% 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 Compass Group and its competitors. For the Restaurants industry, the median Operating Margin % is 4.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Compass Group's current Operating Margin % is 7.27%, which is near median its own 10-year median of 7.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Compass Group stock overvalued right now?
Based on GuruFocus' analysis, Compass Group (CMPGF) is currently considered Modestly Undervalued. The stock's GF Value™ is $40.47, compared to a current price of $32.65 — trading 19.3% below its estimated fair value. The current Operating Margin % is 7.27%, which is near median its 10-year median of 7.08 and 70.7% above the Restaurants industry median of 4.26. Compass Group's overall GF Score™ is 88/100 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 Compass Group (CMPGF), the current Operating Margin % is 7.27% 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 Compass Group (CMPGF) Overvalued in 2026?
Based on GuruFocus' analysis, Compass Group stock appears to be undervalued.
The current stock price of $32.65 is trading 19.3% below its estimated GF Value™ of $40.47.
GuruFocus considers Compass Group to be Modestly Undervalued.
Key valuation signals for CMPGF:
Operating Margin %: 7.27% (near median its 10-year median of 7.08)
GF Value™: $40.47 vs. price of $32.65 (19.3% below fair value)
Industry Position: 70.7% above the Restaurants median (#119 of 365)
No single metric tells the full story. See the CMPGF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Compass Group is the largest foodservice company globally, operating in 30 countries and generating annual sales exceeding $30 billion. Compass' model is to operate on-premises catering facilities, rather than centralized industrial kitchens. Foodservice is Compass' focus and contributes more than 85% of revenue. Compass also has its own group purchasing organization, Foodbuy, which is responsible for over $30 billion in annual spending in the US. The company also provides premium support services to clients.
88GF Score
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