Fabryka Farb I Lakierow Sniezka (FRA:695) 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.
Fabryka Farb I Lakierow Sniezka Operating Margin % Related Terms
Fabryka Farb I Lakierow Sniezka 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.
Fabryka Farb I Lakierow Sniezka Operating Margin % Chart
FRA:695 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Fabryka Farb I Lakierow Sniezka'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.
Fabryka Farb I Lakierow Sniezka Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Fabryka Farb I Lakierow Sniezka's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fabryka Farb I Lakierow Sniezka's Operating Margin % falls into.
Fabryka Farb I Lakierow Sniezka 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.
* 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.
Fabryka Farb I Lakierow Sniezka (FRA:695) has a Operating Margin % of 11.27% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fabryka Farb I Lakierow Sniezka and its competitors. This is 10% below median its historical median of 12.54. Over the past decade, Fabryka Farb I Lakierow Sniezka's Operating Margin % has ranged from 8.89 to 13.91. According to the industry distribution chart, Fabryka Farb I Lakierow Sniezka ranks #307 out of 1585 companies in the Chemicals industry, placing it in the top 19.4%.
Is Fabryka Farb I Lakierow Sniezka's Operating Margin % too high?
Fabryka Farb I Lakierow Sniezka's current Operating Margin % of 11.27% is 10% below median its 10-year median of 12.54. Over the past 10 years, this metric has ranged from a low of 8.89 to a high of 13.91. The Chemicals industry median Operating Margin % is 6.02. Fabryka Farb I Lakierow Sniezka's value of 11.27% is 87.2% above this industry median. Based on the distribution chart, Fabryka Farb I Lakierow Sniezka ranks #307 out of 1585 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Fabryka Farb I Lakierow Sniezka has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Fabryka Farb I Lakierow Sniezka's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Fabryka Farb I Lakierow Sniezka ranks #307 out of 1585 companies for Operating Margin %. This places Fabryka Farb I Lakierow Sniezka in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.02. Fabryka Farb I Lakierow Sniezka's value of 11.27% is 87.2% above this benchmark. Historically, Fabryka Farb I Lakierow Sniezka's own Operating Margin % has ranged from 8.89 to 13.91 over the past decade. While the company's 10-year median is 12.54 vs. the industry median of 6.02, Fabryka Farb I Lakierow Sniezka 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 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. Fabryka Farb I Lakierow Sniezka's current Operating Margin % of 11.27% is 87.2% 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 Fabryka Farb I Lakierow Sniezka and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fabryka Farb I Lakierow Sniezka's current Operating Margin % is 11.27%, which is 10% below median its own 10-year median of 12.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fabryka Farb I Lakierow Sniezka stock overvalued right now?
Based on GuruFocus' analysis, Fabryka Farb I Lakierow Sniezka (FRA:695) is currently considered Fairly Valued. The stock's GF Value™ is €18.39, compared to a current price of €19.00 — trading 3.3% above its estimated fair value. The current Operating Margin % is 11.27%, which is 10% below median its 10-year median of 12.54 and 87.2% above the Chemicals industry median of 6.02. Fabryka Farb I Lakierow Sniezka's overall GF Score™ is 81/100 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 Fabryka Farb I Lakierow Sniezka (FRA:695), the current Operating Margin % is 11.27% 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 Fabryka Farb I Lakierow Sniezka (FRA:695) Overvalued in 2026?
Based on GuruFocus' analysis, Fabryka Farb I Lakierow Sniezka stock appears to be overvalued.
The current stock price of €19.00 is trading 3.3% above its estimated GF Value™ of €18.39.
GuruFocus considers Fabryka Farb I Lakierow Sniezka to be Fairly Valued.
Key valuation signals for FRA:695:
Operating Margin %: 11.27% (10% below median its 10-year median of 12.54)
GF Value™: €18.39 vs. price of €19.00 (3.3% above fair value)
Industry Position: 87.2% above the Chemicals median (#307 of 1585)
No single metric tells the full story. See the FRA:695 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fabryka Farb I Lakierow Sniezka Business Description
Fabryka Farb I Lakierow Sniezka SA is engaged in manufacturing and selling chemical products, paints, varnishes, adhesives, solvents, and fillers in Poland. It also manufactures powder paints.
81GF Score
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