GXO LogisticsFRA:93N -6.16%83 Operating Margin % is 2.40% as of Mar. 2026, which is 25% below its 10-year median of 3.22. GuruFocus rates FRA:93N with a GF Score™ of 83/100 and a GF Value™ of €54.98. The stock has 2 warning signs investors should review. Among 1,007 Transportation companies, GXO Logistics ranks worse than 69.71% on this metric.
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.
GXO Logistics Operating Margin % Related Terms
GXO Logistics Operating Margin % Historical Data
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The historical data trend for GXO Logistics'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:93N vs LSTR, HUBG, PBI: Operating Margin % Comparison
For the Integrated Freight & Logistics subindustry, GXO Logistics'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.
GXO Logistics Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, GXO Logistics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where GXO Logistics'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.
GXO Logistics'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.
GXO Logistics (FRA:93N) has a Operating Margin % of 2.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on GXO Logistics and its competitors. This is 25% below median its historical median of 3.22. Over the past decade, GXO Logistics' Operating Margin % has ranged from 1.49 to 3.93. According to the industry distribution chart, GXO Logistics ranks #702 out of 1007 companies in the Transportation industry, placing it in the top 69.7%.
Is GXO Logistics' Operating Margin % too high?
GXO Logistics' current Operating Margin % of 2.40% is 25% below median its 10-year median of 3.22. Over the past 10 years, this metric has ranged from a low of 1.49 to a high of 3.93. The Transportation industry median Operating Margin % is 7.36. GXO Logistics' value of 2.40% is 67.4% below this industry median. Based on the distribution chart, GXO Logistics ranks #702 out of 1007 companies in the Transportation industry, which is below the industry midpoint. Overall, GXO Logistics has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does GXO Logistics' Operating Margin % compare to LSTR and HUBG?
According to the Transportation industry distribution chart, GXO Logistics ranks #702 out of 1007 companies for Operating Margin %. This places GXO Logistics in the lower half of its industry. The industry median Operating Margin % is 7.36. GXO Logistics' value of 2.40% is 67.4% below this benchmark. Historically, GXO Logistics' own Operating Margin % has ranged from 1.49 to 3.93 over the past decade. While the company's 10-year median is 3.22 vs. the industry median of 7.36, GXO Logistics 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 a Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. GXO Logistics's current Operating Margin % of 2.40% is 67.4% 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 GXO Logistics and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. GXO Logistics's current Operating Margin % is 2.40%, which is 25% below median its own 10-year median of 3.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GXO Logistics stock overvalued right now?
GXO Logistics (FRA:93N) has a current Operating Margin % of 2.40%. The stock's GF Value™ is €54.98, compared to a current price of €40.53 — trading 26.3% below its estimated fair value. The current Operating Margin % is 2.40%, which is 25% below median its 10-year median of 3.22 and 67.4% below the Transportation industry median of 7.36. GXO Logistics' overall GF Score™ is 83/100 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 GXO Logistics (FRA:93N), the current Operating Margin % is 2.40% 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 GXO Logistics (FRA:93N) Overvalued in 2026?
Based on GuruFocus' analysis, GXO Logistics stock appears to be undervalued.
The current stock price of €40.53 is trading 26.3% below its estimated GF Value™ of €54.98.
Key valuation signals for FRA:93N:
Operating Margin %: 2.40% (25% below median its 10-year median of 3.22)
GF Value™: €54.98 vs. price of €40.53 (26.3% below fair value)
Industry Position: 67.4% below the Transportation median (#702 of 1007)
No single metric tells the full story. See the FRA:93N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GXO Logistics Inc is a contract logistics company. Its revenue is diversified across numerous verticals and customers, including many multinational corporations. It provides warehousing and distribution, order fulfillment, e-commerce, reverse logistics, and other supply chain services differentiated by its ability to deliver technology-enabled, customized solutions at scale. Geographically, it generates revenue from the United Kingdom, the United States, the Netherlands, France, Spain, Italy, and other countries, and derives the majority of its revenue from the United Kingdom.
83GF Score
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