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Forgent Power SolutionsFPS +5.59%12 Operating Margin % is 10.39% as of Mar. 2026, which is 828% above its 10-year median of 1.12. GuruFocus rates FPS with a GF Score™ of 12/100. The stock has 2 warning signs investors should review. Among 3,037 Industrial Products companies, Forgent Power Solutions ranks worse than 58.45% on this metric.
Forgent Power Solutions (NYSE:FPS) 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.
Forgent Power Solutions Operating Margin % Related Terms
Forgent Power Solutions Operating Margin % Historical Data
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The historical data trend for Forgent Power Solutions'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.
FPS vs AYI, POWL, ENS: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Forgent Power Solutions'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.
Forgent Power Solutions Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Forgent Power Solutions's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Forgent Power Solutions's Operating Margin % falls into.
Forgent Power Solutions 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.
Forgent Power Solutions's Operating Margin % for the fiscal year that ended in Jun. 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.
Forgent Power Solutions (FPS) has a Operating Margin % of 10.39% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Forgent Power Solutions and its competitors. This is 828% above median its historical median of 1.12. According to the industry distribution chart, Forgent Power Solutions ranks #1775 out of 3037 companies in the Industrial Products industry, placing it in the top 58.4%.
Is Forgent Power Solutions' Operating Margin % too high?
Forgent Power Solutions' current Operating Margin % of 10.39% is 828% above median its 10-year median of 1.12. The Industrial Products industry median Operating Margin % is 6.53. Forgent Power Solutions' value of 10.39% is 59.1% above this industry median. Based on the distribution chart, Forgent Power Solutions ranks #1775 out of 3037 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Forgent Power Solutions has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Forgent Power Solutions' Operating Margin % compare to AYI and POWL?
According to the Industrial Products industry distribution chart, Forgent Power Solutions ranks #1775 out of 3037 companies for Operating Margin %. This places Forgent Power Solutions in the lower half of its industry. The industry median Operating Margin % is 6.53. Forgent Power Solutions' value of 10.39% is 59.1% above this benchmark. While the company's 10-year median is 1.12 vs. the industry median of 6.53, Forgent Power Solutions 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,037 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. Forgent Power Solutions's current Operating Margin % of 10.39% is 59.1% 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 Forgent Power Solutions and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forgent Power Solutions's current Operating Margin % is 10.39%, which is 828% above median its own 10-year median of 1.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forgent Power Solutions stock overvalued right now?
Forgent Power Solutions (FPS) has a current Operating Margin % of 10.39%. The current Operating Margin % is 10.39%, which is 828% above median its 10-year median of 1.12 and 59.1% above the Industrial Products industry median of 6.53. Forgent Power Solutions' overall GF Score™ is 12/100 with 2 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 Forgent Power Solutions (FPS), the current Operating Margin % is 10.39% 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.
Forgent Power Solutions Inc designs and manufactures electrical distribution equipment for data centers, the power grid, and industrial facilities. Its offerings include automatic transfer switches, transformers (dry type and liquid filled), electrical houses, generator connection cabinets, panelboards, switchboards, switchgear, power distribution units, power skids, remote power panels, and tap boxes.It specializes in manufacturing Custom Products and Powertrain Solutions for technically demanding applications, including data center power distribution, utility substations and energy-intensive manufacturing. The majority of the company's revenue is derived from custom products designed for specific projects with significant engineering consultation.
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