Arjo ABFRA:A39 +1.12%72 Operating Margin % is 7.08% as of Mar. 2026, which is 17% below its 10-year median of 8.52. GuruFocus rates FRA:A39 with a GF Score™ of 72/100 and a GF Value™ of €3.24 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 119 Medical Distribution companies, Arjo AB ranks better than 82.35% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Arjo AB's Operating Income for the
three
months ended in Mar. 2026 was €17.7 Mil. Arjo AB's Revenue for the
three
months ended in Mar. 2026 was €250.5 Mil. Therefore, Arjo AB's Operating Margin % for the quarter that ended in Mar. 2026 was 7.08%.
Warning Sign:
Arjo AB operating margin has been in a 5-year decline. The average rate of decline per year is -6.7%.
The historical rank and industry rank for Arjo AB's Operating Margin % or its related term are showing as below:
FRA:A39'
s Operating Margin % Range Over the Past 10 Years
Min: 7.41 Med: 8.52 Max: 12.39
Current: 7.5
FRA:A39's Operating Margin % is ranked better than 82.35% of 119
companies
in the Medical Distribution industry
Industry Median: 3.07
vs FRA:A39: 7.50
Arjo AB's 5-Year Average Operating Margin % Growth Rate was -6.70% per year.
Arjo AB's Operating Income for the
three
months ended in Mar. 2026 was €17.7 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €74.5 Mil.
Arjo AB (FRA:A39) 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.
Arjo AB Operating Margin % Related Terms
Arjo AB Operating Margin % Historical Data
* Premium members only.
The historical data trend for Arjo AB'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:A39 vs MCK, COR, CAH: Operating Margin % Comparison
For the Medical Distribution subindustry, Arjo AB'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.
Arjo AB Operating Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Arjo AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Arjo AB'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.
Arjo AB'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.
Arjo AB (FRA:A39) has a Operating Margin % of 7.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Arjo AB and its competitors. This is 17% below median its historical median of 8.52. Over the past decade, Arjo AB's Operating Margin % has ranged from 7.41 to 12.39. According to the industry distribution chart, Arjo AB ranks #21 out of 119 companies in the Medical Distribution industry, placing it in the top 17.6%.
Is Arjo AB's Operating Margin % too high?
Arjo AB's current Operating Margin % of 7.08% is 17% below median its 10-year median of 8.52. Over the past 10 years, this metric has ranged from a low of 7.41 to a high of 12.39. The Medical Distribution industry median Operating Margin % is 3.07. Arjo AB's value of 7.08% is 130.6% above this industry median. Based on the distribution chart, Arjo AB ranks #21 out of 119 companies in the Medical Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Arjo AB has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Arjo AB's Operating Margin % compare to MCK and COR?
According to the Medical Distribution industry distribution chart, Arjo AB ranks #21 out of 119 companies for Operating Margin %. This places Arjo AB in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.07. Arjo AB's value of 7.08% is 130.6% above this benchmark. Historically, Arjo AB's own Operating Margin % has ranged from 7.41 to 12.39 over the past decade. While the company's 10-year median is 8.52 vs. the industry median of 3.07, Arjo AB 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 Medical Distribution company?
The median Operating Margin % among Medical Distribution companies is 3.07, based on 119 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. Arjo AB's current Operating Margin % of 7.08% is 130.6% 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 Arjo AB and its competitors. For the Medical Distribution industry, the median Operating Margin % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arjo AB's current Operating Margin % is 7.08%, which is 17% below median its own 10-year median of 8.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arjo AB stock overvalued right now?
Based on GuruFocus' analysis, Arjo AB (FRA:A39) is currently considered Significantly Undervalued. The stock's GF Value™ is €3.24, compared to a current price of €2.16 — trading 33.2% below its estimated fair value. The current Operating Margin % is 7.08%, which is 17% below median its 10-year median of 8.52 and 130.6% above the Medical Distribution industry median of 3.07. Arjo AB's overall GF Score™ is 72/100 with 5 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 Arjo AB (FRA:A39), the current Operating Margin % is 7.08% 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 Arjo AB (FRA:A39) Overvalued in 2026?
Based on GuruFocus' analysis, Arjo AB stock appears to be undervalued.
The current stock price of €2.16 is trading 33.2% below its estimated GF Value™ of €3.24.
GuruFocus considers Arjo AB to be Significantly Undervalued.
Key valuation signals for FRA:A39:
Operating Margin %: 7.08% (17% below median its 10-year median of 8.52)
GF Value™: €3.24 vs. price of €2.16 (33.2% below fair value)
Industry Position: 130.6% above the Medical Distribution median (#21 of 119)
No single metric tells the full story. See the FRA:A39 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arjo AB is a supplier of medical devices, services, and solutions in Sweden. It serves its services to private and public institutions with acute care and long-term care. The company's offering includes products and solutions for patient handling, hygiene, disinfection, medical beds, therapeutic surfaces, venous thromboembolism (VTE) prevention and diagnostics. The company includes segments: Global Sales, North America, Diagnostics.
72GF Score
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