Fortune Brands InnovationsFBIN +8.41%70 Operating Margin % is 6.38% as of Mar. 2026, which is 56% below its 10-year median of 14.34. GuruFocus rates FBIN with a GF Score™ of 70/100 and a GF Value™ of $66.85 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 1,767 Construction companies, Fortune Brands Innovations ranks better than 78.83% 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.
Fortune Brands Innovations Operating Margin % Related Terms
Fortune Brands Innovations 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.
FBIN vs TREX, GFF, LPX: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Fortune Brands Innovations'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.
Fortune Brands Innovations Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Fortune Brands Innovations's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fortune Brands Innovations'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.
Fortune Brands Innovations'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.
Fortune Brands Innovations (FBIN) has a Operating Margin % of 6.38% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fortune Brands Innovations and its competitors. This is 56% below median its historical median of 14.34. Over the past decade, Fortune Brands Innovations' Operating Margin % has ranged from 12.54 to 17.26. According to the industry distribution chart, Fortune Brands Innovations ranks #374 out of 1767 companies in the Construction industry, placing it in the top 21.2%.
Is Fortune Brands Innovations' Operating Margin % too high?
Fortune Brands Innovations' current Operating Margin % of 6.38% is 56% below median its 10-year median of 14.34. Over the past 10 years, this metric has ranged from a low of 12.54 to a high of 17.26. The Construction industry median Operating Margin % is 5.89. Fortune Brands Innovations' value of 6.38% is 8.3% above this industry median. Based on the distribution chart, Fortune Brands Innovations ranks #374 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Fortune Brands Innovations has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fortune Brands Innovations' Operating Margin % compare to TREX and GFF?
According to the Construction industry distribution chart, Fortune Brands Innovations ranks #374 out of 1767 companies for Operating Margin %. This places Fortune Brands Innovations in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Fortune Brands Innovations' value of 6.38% is 8.3% above this benchmark. Historically, Fortune Brands Innovations' own Operating Margin % has ranged from 12.54 to 17.26 over the past decade. While the company's 10-year median is 14.34 vs. the industry median of 5.89, Fortune Brands Innovations 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Fortune Brands Innovations's current Operating Margin % of 6.38% is 8.3% 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 Fortune Brands Innovations and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fortune Brands Innovations's current Operating Margin % is 6.38%, which is 56% below median its own 10-year median of 14.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fortune Brands Innovations stock overvalued right now?
Based on GuruFocus' analysis, Fortune Brands Innovations (FBIN) is currently considered Significantly Undervalued. The stock's GF Value™ is $66.85, compared to a current price of $44.07 — trading 34.1% below its estimated fair value. The current Operating Margin % is 6.38%, which is 56% below median its 10-year median of 14.34 and 8.3% above the Construction industry median of 5.89. Fortune Brands Innovations' overall GF Score™ is 70/100 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 Fortune Brands Innovations (FBIN), the current Operating Margin % is 6.38% 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 Fortune Brands Innovations (FBIN) Overvalued in 2026?
Based on GuruFocus' analysis, Fortune Brands Innovations stock appears to be undervalued.
The current stock price of $44.07 is trading 34.1% below its estimated GF Value™ of $66.85.
GuruFocus considers Fortune Brands Innovations to be Significantly Undervalued.
Key valuation signals for FBIN:
Operating Margin %: 6.38% (56% below median its 10-year median of 14.34)
GF Value™: $66.85 vs. price of $44.07 (34.1% below fair value)
Industry Position: 8.3% above the Construction median (#374 of 1767)
No single metric tells the full story. See the FBIN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fortune Brands is a US-based homebuilding products company that sells building-related products serving R&R and new construction markets. The company operates in three segments: water, outdoors, and security. Water innovation, including plumbing fixtures and faucets, accounts for around 55% of total sales and features brands such as Moen, House of Rohl, and Aqualisa. The outdoors segment includes decking, railing, and doors and makes up 30% of total sales, featuring brands such as Larson, Fiberon, and Therma-Tru. The security segment, which includes smart residential padlocks, accounts for the remaining 15% of sales and features brands such as MasterLock, SentrySafe, Yale, and AmericanLock.
70GF Score
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