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Clearwater Paper (FRA:5WC) 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.
Clearwater Paper Operating Margin % Related Terms
Clearwater Paper Operating Margin % Historical Data
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The historical data trend for Clearwater Paper'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:5WC vs MERC, ITP: Operating Margin % Comparison
For the Paper & Paper Products subindustry, Clearwater Paper'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.
Clearwater Paper Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Clearwater Paper's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Clearwater Paper'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.
Clearwater Paper'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.
Clearwater Paper (FRA:5WC) has a Operating Margin % of -8.70% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Clearwater Paper and its competitors. According to the industry distribution chart, Clearwater Paper ranks #209 out of 282 companies in the Forest Products industry, placing it in the top 74.1%.
Is Clearwater Paper's Operating Margin % too high?
Clearwater Paper's current Operating Margin % is -8.70%. Based on the distribution chart, Clearwater Paper ranks #209 out of 282 companies in the Forest Products industry, which is below the industry midpoint. Overall, Clearwater Paper has a GF Score™ of 44/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Clearwater Paper's Operating Margin % compare to MERC and ITP?
According to the Forest Products industry distribution chart, Clearwater Paper ranks #209 out of 282 companies for Operating Margin %. This places Clearwater Paper in the lower half of its industry. The industry median Operating Margin % is 2.54. 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.54, based on 282 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. 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 Clearwater Paper and its competitors. For the Forest Products industry, the median Operating Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Clearwater Paper's current Operating Margin % is -8.70%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Clearwater Paper stock overvalued right now?
Based on GuruFocus' analysis, Clearwater Paper (FRA:5WC) is currently considered Possible Value Trap. The stock's GF Value™ is €27.65, compared to a current price of €18.00 — trading 34.9% below its estimated fair value. The current Operating Margin % is -8.70%. Clearwater Paper's overall GF Score™ is 44/100 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 Clearwater Paper (FRA:5WC), the current Operating Margin % is -8.70% as of Jun. 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 Clearwater Paper (FRA:5WC) Overvalued in 2026?
Based on GuruFocus' analysis, Clearwater Paper stock appears to be undervalued.
The current stock price of €18.00 is trading 34.9% below its estimated GF Value™ of €27.65.
GuruFocus considers Clearwater Paper to be Possible Value Trap.
Key valuation signals for FRA:5WC:
Operating Margin %: -8.70%
GF Value™: €27.65 vs. price of €18.00 (34.9% below fair value)
No single metric tells the full story. See the FRA:5WC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Clearwater Paper Corp is engaged in the manufacturing and supplier of Solid Bleached Sulfate (SBS) paperboard packaging products. The company products includes: SBS paperboard which is a premium paperboard grade that is frequently used to produce folding cartons, food service, commercial printing items. It generates maximum revenue from Pulp and Paperboard segment. Company operate in United States and have globalized access too. Geographically, it derives maximum revenue from the United States.
44GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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