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.
Knight Therapeutics Operating Margin % Related Terms
Knight Therapeutics Operating Margin % Historical Data
* Premium members only.
The historical data trend for Knight Therapeutics'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Knight Therapeutics'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.
Knight Therapeutics Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Knight Therapeutics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Knight Therapeutics'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.
Knight Therapeutics'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.
Knight Therapeutics (FRA:04K) has a Operating Margin % of 7.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Knight Therapeutics and its competitors. According to the industry distribution chart, Knight Therapeutics ranks #605 out of 955 companies in the Drug Manufacturers industry, placing it in the top 63.4%.
Is Knight Therapeutics' Operating Margin % too high?
Knight Therapeutics' current Operating Margin % is 7.13%. The Drug Manufacturers industry median Operating Margin % is 7.45. Knight Therapeutics' value of 7.13% is 4.3% below this industry median. Based on the distribution chart, Knight Therapeutics ranks #605 out of 955 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Knight Therapeutics has a GF Score™ of 73/100, reflecting its overall financial health beyond just this single metric.
How does Knight Therapeutics' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Knight Therapeutics ranks #605 out of 955 companies for Operating Margin %. This places Knight Therapeutics in the lower half of its industry. The industry median Operating Margin % is 7.45. Knight Therapeutics' value of 7.13% is 4.3% below this benchmark. 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Knight Therapeutics's current Operating Margin % of 7.13% is 4.3% below 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 Knight Therapeutics and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Knight Therapeutics's current Operating Margin % is 7.13%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Knight Therapeutics stock overvalued right now?
Knight Therapeutics (FRA:04K) has a current Operating Margin % of 7.13%. The stock's GF Value™ is €5.35, compared to a current price of €5.70 — trading 6.5% above its estimated fair value. The current Operating Margin % is 7.13% and 4.3% below the Drug Manufacturers industry median of 7.45. Knight Therapeutics' overall GF Score™ is 73/100 with 6 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 Knight Therapeutics (FRA:04K), the current Operating Margin % is 7.13% 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 Knight Therapeutics (FRA:04K) Overvalued in 2026?
Based on GuruFocus' analysis, Knight Therapeutics stock appears to be overvalued.
The current stock price of €5.70 is trading 6.5% above its estimated GF Value™ of €5.35.
Key valuation signals for FRA:04K:
Operating Margin %: 7.13%
GF Value™: €5.35 vs. price of €5.70 (6.5% above fair value)
Industry Position: 4.3% below the Drug Manufacturers median (#605 of 955)
No single metric tells the full story. See the FRA:04K stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Knight Therapeutics Inc is a specialty and generic drug manufacturing company. The company's principal business activity is focused on developing, acquiring, in-licensing, out-licensing, marketing, and commercializing pharmaceuticalproducts. and distributing pharmaceutical products, consumer health products, and medical devices in Canada, Latin America and select international markets. The company finances other life sciences companies across the globe in order to generate interest income, strengthen relationships in the life sciences industry, and to secure product distribution rights. Geographically, the company generates revenue from Brazil, Canada, Colombia, Argentina, Mexico, Rest of LATAM, and Others, with the majority revenue generated from the Brazil region.
73GF Score
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