Capital PowerFRA:2CP +1.77%70 Operating Margin % is 8.80% as of Mar. 2026, which is 57% below its 10-year median of 20.54. GuruFocus rates FRA:2CP with a GF Score™ of 70/100 and a GF Value™ of €24.77 (Significantly Overvalued). The stock has 15 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, Capital Power ranks worse than 63.07% on this metric.
Capital Power Corp operating margin has been in a 5-year decline. The average rate of decline per year is -6.8%.
The historical rank and industry rank for Capital Power's Operating Margin % or its related term are showing as below:
FRA:2CP'
s Operating Margin % Range Over the Past 10 Years
Min: 6.3 Med: 20.54 Max: 32.76
Current: 6.3
FRA:2CP's Operating Margin % is ranked worse than 63.07% of 417
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.27
vs FRA:2CP: 6.30
Capital Power's 5-Year Average Operating Margin % Growth Rate was -6.80% per year.
Capital Power Corp has recorded a loss in operating income at least once over the past 3 years.
Capital Power (FRA:2CP) 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.
Capital Power Operating Margin % Related Terms
Capital Power Operating Margin % Historical Data
* Premium members only.
The historical data trend for Capital Power'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.
FRA:2CP vs CEG, VST, NRG: Operating Margin % Comparison
For the Utilities - Independent Power Producers subindustry, Capital Power'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.
Capital Power Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Capital Power's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Capital Power'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.
Capital Power'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.
Capital Power (FRA:2CP) has a Operating Margin % of 8.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Capital Power and its competitors. This is 57% below median its historical median of 20.54. Over the past decade, Capital Power's Operating Margin % has ranged from 6.30 to 32.76. According to the industry distribution chart, Capital Power ranks #263 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 63.1%.
Is Capital Power's Operating Margin % too high?
Capital Power's current Operating Margin % of 8.80% is 57% below median its 10-year median of 20.54. Over the past 10 years, this metric has ranged from a low of 6.30 to a high of 32.76. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. Capital Power's value of 8.80% is 33.7% below this industry median. Based on the distribution chart, Capital Power ranks #263 out of 417 companies in the Utilities - Independent Power Producers industry, which is below the industry midpoint. Overall, Capital Power has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Capital Power's Operating Margin % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Capital Power ranks #263 out of 417 companies for Operating Margin %. This places Capital Power in the lower half of its industry. The industry median Operating Margin % is 13.27. Capital Power's value of 8.80% is 33.7% below this benchmark. Historically, Capital Power's own Operating Margin % has ranged from 6.30 to 32.76 over the past decade. While the company's 10-year median is 20.54 vs. the industry median of 13.27, Capital Power has consistently been below 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 Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 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. Capital Power's current Operating Margin % of 8.80% is 33.7% 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 Capital Power and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Capital Power's current Operating Margin % is 8.80%, which is 57% below median its own 10-year median of 20.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Capital Power stock overvalued right now?
Based on GuruFocus' analysis, Capital Power (FRA:2CP) is currently considered Significantly Overvalued. The stock's GF Value™ is €24.77, compared to a current price of €46.00 — trading 85.7% above its estimated fair value. The current Operating Margin % is 8.80%, which is 57% below median its 10-year median of 20.54 and 33.7% below the Utilities - Independent Power Producers industry median of 13.27. Capital Power's overall GF Score™ is 70/100 with 15 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 Capital Power (FRA:2CP), the current Operating Margin % is 8.80% 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 Capital Power (FRA:2CP) Overvalued in 2026?
Based on GuruFocus' analysis, Capital Power stock appears to be overvalued.
The current stock price of €46.00 is trading 85.7% above its estimated GF Value™ of €24.77.
GuruFocus considers Capital Power to be Significantly Overvalued.
Key valuation signals for FRA:2CP:
Operating Margin %: 8.80% (57% below median its 10-year median of 20.54)
GF Value™: €24.77 vs. price of €46.00 (85.7% above fair value)
Industry Position: 33.7% below the Utilities - Independent Power Producers median (#263 of 417)
No single metric tells the full story. See the FRA:2CP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Capital Power Corp is a North American power producer whose principal activities are developing, acquiring, and operating power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities. These are located throughout Western and Central Canada and the U.S. Capital Power's natural gas and coal facilities, specifically its Genesee and Shepard sites, account for its electric capacity and cash flow production. The company generates the vast majority of its revenue from sale of electricity and natural gas. The company's customers include a variety of industrial and commercial consumers, independent transmission system operators, and government-owned entities.
70GF Score
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