Ferronordic ABFRA:AA4 -0.69%82 Operating Margin % is 3.19% as of Mar. 2026, which is 28% below its 10-year median of 4.40. GuruFocus rates FRA:AA4 with a GF Score™ of 82/100 and a GF Value™ of €5.98 (Fairly Valued). The stock has 7 warning signs investors should review. Among 157 Industrial Distribution companies, Ferronordic AB ranks worse than 73.25% on this metric.
The historical rank and industry rank for Ferronordic AB's Operating Margin % or its related term are showing as below:
FRA:AA4'
s Operating Margin % Range Over the Past 10 Years
Min: -7.15 Med: 4.4 Max: 9.84
Current: 2.25
FRA:AA4's Operating Margin % is ranked worse than 73.25% of 157
companies
in the Industrial Distribution industry
Industry Median: 4.74
vs FRA:AA4: 2.25
Ferronordic AB's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Ferronordic AB (FRA:AA4) 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.
Ferronordic AB Operating Margin % Related Terms
Ferronordic AB Operating Margin % Historical Data
* Premium members only.
The historical data trend for Ferronordic 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:AA4 vs GWW, FAST, FERG: Operating Margin % Comparison
For the Industrial Distribution subindustry, Ferronordic 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.
Ferronordic AB Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Ferronordic AB's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ferronordic 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.
Ferronordic 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.
Ferronordic AB (FRA:AA4) has a Operating Margin % of 3.19% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ferronordic AB and its competitors. This is 28% below median its historical median of 4.40. According to the industry distribution chart, Ferronordic AB ranks #115 out of 157 companies in the Industrial Distribution industry, placing it in the top 73.2%.
Is Ferronordic AB's Operating Margin % too high?
Ferronordic AB's current Operating Margin % of 3.19% is 28% below median its 10-year median of 4.40. The Industrial Distribution industry median Operating Margin % is 4.74. Ferronordic AB's value of 3.19% is 32.7% below this industry median. Based on the distribution chart, Ferronordic AB ranks #115 out of 157 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, Ferronordic AB has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ferronordic AB's Operating Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Ferronordic AB ranks #115 out of 157 companies for Operating Margin %. This places Ferronordic AB in the lower half of its industry. The industry median Operating Margin % is 4.74. Ferronordic AB's value of 3.19% is 32.7% below this benchmark. While the company's 10-year median is 4.40 vs. the industry median of 4.74, Ferronordic AB 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 Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.74, based on 157 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. Ferronordic AB's current Operating Margin % of 3.19% is 32.7% 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 Ferronordic AB and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferronordic AB's current Operating Margin % is 3.19%, which is 28% below median its own 10-year median of 4.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ferronordic AB stock overvalued right now?
Based on GuruFocus' analysis, Ferronordic AB (FRA:AA4) is currently considered Fairly Valued. The stock's GF Value™ is €5.98, compared to a current price of €5.72 — trading 4.3% below its estimated fair value. The current Operating Margin % is 3.19%, which is 28% below median its 10-year median of 4.40 and 32.7% below the Industrial Distribution industry median of 4.74. Ferronordic AB's overall GF Score™ is 82/100 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 Ferronordic AB (FRA:AA4), the current Operating Margin % is 3.19% 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 Ferronordic AB (FRA:AA4) Overvalued in 2026?
Based on GuruFocus' analysis, Ferronordic AB stock appears to be undervalued.
The current stock price of €5.72 is trading 4.3% below its estimated GF Value™ of €5.98.
GuruFocus considers Ferronordic AB to be Fairly Valued.
Key valuation signals for FRA:AA4:
Operating Margin %: 3.19% (28% below median its 10-year median of 4.40)
GF Value™: €5.98 vs. price of €5.72 (4.3% below fair value)
Industry Position: 32.7% below the Industrial Distribution median (#115 of 157)
No single metric tells the full story. See the FRA:AA4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ferronordic AB is engaged in the sales, rents, and services of construction equipment and other machinery. The company is an authorized dealer of Volvo Construction Equipment, Terex Trucks, Dressta, Mecalac, and Rottne and has also been appointed as an aftermarket dealer for Volvo and Renault Trucks and a dealer for Volvo Penta. The group has three reporting segments: USA, Germany and Kazakhstan. The majority of the revenue is generated from the USA segment.
82GF Score
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