Eregli Demir Ve Celik Fabrikalari TAS (OTCPK:ERELY) 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.
Eregli Demir Ve Celik Fabrikalari TAS Operating Margin % Related Terms
Eregli Demir Ve Celik Fabrikalari TAS Operating Margin % Historical Data
* 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.
Eregli Demir Ve Celik Fabrikalari TAS Operating Margin % Chart
ERELY vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Eregli Demir Ve Celik Fabrikalari TAS'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.
Eregli Demir Ve Celik Fabrikalari TAS Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Eregli Demir Ve Celik Fabrikalari TAS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eregli Demir Ve Celik Fabrikalari TAS's Operating Margin % falls into.
Eregli Demir Ve Celik Fabrikalari TAS Operating Margin % Calculation
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.
* 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.
Eregli Demir Ve Celik Fabrikalari TAS (ERELY) has a Operating Margin % of 3.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Eregli Demir Ve Celik Fabrikalari TAS and its competitors. This is 80% below median its historical median of 17.16. Over the past decade, Eregli Demir Ve Celik Fabrikalari TAS's Operating Margin % has ranged from 4.25 to 35.70. According to the industry distribution chart, Eregli Demir Ve Celik Fabrikalari TAS ranks #246 out of 616 companies in the Steel industry, placing it in the top 39.9%.
Is Eregli Demir Ve Celik Fabrikalari TAS's Operating Margin % too high?
Eregli Demir Ve Celik Fabrikalari TAS's current Operating Margin % of 3.50% is 80% below median its 10-year median of 17.16. Over the past 10 years, this metric has ranged from a low of 4.25 to a high of 35.70. The Steel industry median Operating Margin % is 3.00. Eregli Demir Ve Celik Fabrikalari TAS's value of 3.50% is 16.7% above this industry median. Based on the distribution chart, Eregli Demir Ve Celik Fabrikalari TAS ranks #246 out of 616 companies in the Steel industry, which is above the industry midpoint. Overall, Eregli Demir Ve Celik Fabrikalari TAS has a GF Score™ of 92/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Eregli Demir Ve Celik Fabrikalari TAS's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Eregli Demir Ve Celik Fabrikalari TAS ranks #246 out of 616 companies for Operating Margin %. This puts Eregli Demir Ve Celik Fabrikalari TAS in the upper half of its industry. The industry median Operating Margin % is 3.00. Eregli Demir Ve Celik Fabrikalari TAS's value of 3.50% is 16.7% above this benchmark. Historically, Eregli Demir Ve Celik Fabrikalari TAS's own Operating Margin % has ranged from 4.25 to 35.70 over the past decade. While the company's 10-year median is 17.16 vs. the industry median of 3.00, Eregli Demir Ve Celik Fabrikalari TAS 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 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. Eregli Demir Ve Celik Fabrikalari TAS's current Operating Margin % of 3.50% is 16.7% 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 Eregli Demir Ve Celik Fabrikalari TAS and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eregli Demir Ve Celik Fabrikalari TAS's current Operating Margin % is 3.50%, which is 80% below median its own 10-year median of 17.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eregli Demir Ve Celik Fabrikalari TAS stock overvalued right now?
Based on GuruFocus' analysis, Eregli Demir Ve Celik Fabrikalari TAS (ERELY) is currently considered Significantly Overvalued. The stock's GF Value™ is $6.75, compared to a current price of $9.00 — trading 33.3% above its estimated fair value. The current Operating Margin % is 3.50%, which is 80% below median its 10-year median of 17.16 and 16.7% above the Steel industry median of 3.00. Eregli Demir Ve Celik Fabrikalari TAS's overall GF Score™ is 92/100 with 12 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 Eregli Demir Ve Celik Fabrikalari TAS (ERELY), the current Operating Margin % is 3.50% 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 Eregli Demir Ve Celik Fabrikalari TAS (ERELY) Overvalued in 2026?
Based on GuruFocus' analysis, Eregli Demir Ve Celik Fabrikalari TAS stock appears to be overvalued.
The current stock price of $9.00 is trading 33.3% above its estimated GF Value™ of $6.75.
GuruFocus considers Eregli Demir Ve Celik Fabrikalari TAS to be Significantly Overvalued.
Key valuation signals for ERELY:
Operating Margin %: 3.50% (80% below median its 10-year median of 17.16)
GF Value™: $6.75 vs. price of $9.00 (33.3% above fair value)
Industry Position: 16.7% above the Steel median (#246 of 616)
No single metric tells the full story. See the ERELY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eregli Demir Ve Celik Fabrikalari TAS Business Description
Eregli Demir Ve Celik Fabrikalari TAS is a Turkey-based company engaged in production of flat steel, long steel and other steel products. The company also provides engineering and project management services, as well as port services. As well, the company owns an iron ore mining arm. The company's steel products include hot-rolled product, cold-rolled product, galvanized products, metal packaging steel, billet, wire-rod, etc. These products are used in the automotive sector, manufacturing industry, projected works, consumer products, packaging industries and others. Most of the company's revenue comes from the Turkish domestic market.
92GF Score
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