Expeditors International of Washington (NYSE:EXPD) 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.
Expeditors International of Washington Operating Margin % Related Terms
Expeditors International of Washington 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.
Expeditors International of Washington Operating Margin % Chart
Expeditors International of Washington Annual Data
EXPD vs CHRW, FDXFw, ZTO: Operating Margin % Comparison
For the Integrated Freight & Logistics subindustry, Expeditors International of Washington'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.
Expeditors International of Washington Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Expeditors International of Washington's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Expeditors International of Washington's Operating Margin % falls into.
Expeditors International of Washington 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.
Expeditors International of Washington (EXPD) has a Operating Margin % of 10.59% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Expeditors International of Washington and its competitors. This is near median its historical median of 9.97. Over the past decade, Expeditors International of Washington's Operating Margin % has ranged from 9.51 to 11.56. According to the industry distribution chart, Expeditors International of Washington ranks #409 out of 1007 companies in the Transportation industry, placing it in the top 40.6%.
Is Expeditors International of Washington's Operating Margin % too high?
Expeditors International of Washington's current Operating Margin % of 10.59% is near median its 10-year median of 9.97. Over the past 10 years, this metric has ranged from a low of 9.51 to a high of 11.56. The Transportation industry median Operating Margin % is 7.36. Expeditors International of Washington's value of 10.59% is 43.9% above this industry median. Based on the distribution chart, Expeditors International of Washington ranks #409 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, Expeditors International of Washington has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Expeditors International of Washington's Operating Margin % compare to CHRW and FDXFw?
According to the Transportation industry distribution chart, Expeditors International of Washington ranks #409 out of 1007 companies for Operating Margin %. This puts Expeditors International of Washington in the upper half of its industry. The industry median Operating Margin % is 7.36. Expeditors International of Washington's value of 10.59% is 43.9% above this benchmark. Historically, Expeditors International of Washington's own Operating Margin % has ranged from 9.51 to 11.56 over the past decade. While the company's 10-year median is 9.97 vs. the industry median of 7.36, Expeditors International of Washington 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. Expeditors International of Washington's current Operating Margin % of 10.59% is 43.9% 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 Expeditors International of Washington and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Expeditors International of Washington's current Operating Margin % is 10.59%, which is near median its own 10-year median of 9.97. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Expeditors International of Washington stock overvalued right now?
Based on GuruFocus' analysis, Expeditors International of Washington (EXPD) is currently considered Fairly Valued. The stock's GF Value™ is $146.01, compared to a current price of $160.16 — trading 9.7% above its estimated fair value. The current Operating Margin % is 10.59%, which is near median its 10-year median of 9.97 and 43.9% above the Transportation industry median of 7.36. Expeditors International of Washington's overall GF Score™ is 78/100 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 Expeditors International of Washington (EXPD), the current Operating Margin % is 10.59% 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 Expeditors International of Washington (EXPD) Overvalued in 2026?
Based on GuruFocus' analysis, Expeditors International of Washington stock appears to be overvalued.
The current stock price of $160.16 is trading 9.7% above its estimated GF Value™ of $146.01.
GuruFocus considers Expeditors International of Washington to be Fairly Valued.
Key valuation signals for EXPD:
Operating Margin %: 10.59% (near median its 10-year median of 9.97)
GF Value™: $146.01 vs. price of $160.16 (9.7% above fair value)
Industry Position: 43.9% above the Transportation median (#409 of 1007)
No single metric tells the full story. See the EXPD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Expeditors International of Washington Business Description
Based in the US, Expeditors International of Washington is a non-asset-based third-party logistics provider, mainly focused on international freight forwarding. Its offers freight consolidation and forwarding, customs brokerage, warehousing and distribution, purchase order management, vendor consolidation, and numerous other value-added logistics services. It employs sophisticated IT systems and contracts with airlines and ocean carriers to move customers' freight across the globe. The firm operates more than 200 full-service office locations worldwide, in addition to numerous satellite locations. In 2025, Expeditors derived 36% of consolidated gross revenue from airfreight, 25% from ocean freight, and 39% from customs brokerage and other services.
78GF Score
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