ABM IndustriesFRA:AB4 +1.04%81 Operating Margin % is 3.93% as of Apr. 2026, which is 17% above its 10-year median of 3.35. GuruFocus rates FRA:AB4 with a GF Score™ of 81/100 and a GF Value™ of €46.99 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,070 Business Services companies, ABM Industries ranks worse than 61.87% 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.
ABM Industries Operating Margin % Related Terms
ABM Industries Operating Margin % Historical Data
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The historical data trend for ABM Industries'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:AB4 vs CMPR, FA, TIC: Operating Margin % Comparison
For the Specialty Business Services subindustry, ABM Industries'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.
ABM Industries Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, ABM Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ABM Industries'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.
ABM Industries's Operating Margin % for the fiscal year that ended in Oct. 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.
ABM Industries (FRA:AB4) has a Operating Margin % of 3.93% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ABM Industries and its competitors. This is 17% above median its historical median of 3.35. Over the past decade, ABM Industries' Operating Margin % has ranged from 1.91 to 5.06. According to the industry distribution chart, ABM Industries ranks #662 out of 1070 companies in the Business Services industry, placing it in the top 61.9%.
Is ABM Industries' Operating Margin % too high?
ABM Industries' current Operating Margin % of 3.93% is 17% above median its 10-year median of 3.35. Over the past 10 years, this metric has ranged from a low of 1.91 to a high of 5.06. The Business Services industry median Operating Margin % is 6.28. ABM Industries' value of 3.93% is 37.4% below this industry median. Based on the distribution chart, ABM Industries ranks #662 out of 1070 companies in the Business Services industry, which is below the industry midpoint. Overall, ABM Industries has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ABM Industries' Operating Margin % compare to CMPR and FA?
According to the Business Services industry distribution chart, ABM Industries ranks #662 out of 1070 companies for Operating Margin %. This places ABM Industries in the lower half of its industry. The industry median Operating Margin % is 6.28. ABM Industries' value of 3.93% is 37.4% below this benchmark. Historically, ABM Industries' own Operating Margin % has ranged from 1.91 to 5.06 over the past decade. While the company's 10-year median is 3.35 vs. the industry median of 6.28, ABM Industries 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 Business Services company?
The median Operating Margin % among Business Services companies is 6.28, based on 1,070 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. ABM Industries's current Operating Margin % of 3.93% is 37.4% 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 ABM Industries and its competitors. For the Business Services industry, the median Operating Margin % is 6.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ABM Industries's current Operating Margin % is 3.93%, which is 17% above median its own 10-year median of 3.35. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ABM Industries stock overvalued right now?
Based on GuruFocus' analysis, ABM Industries (FRA:AB4) is currently considered Modestly Undervalued. The stock's GF Value™ is €46.99, compared to a current price of €39.00 — trading 17% below its estimated fair value. The current Operating Margin % is 3.93%, which is 17% above median its 10-year median of 3.35 and 37.4% below the Business Services industry median of 6.28. ABM Industries' overall GF Score™ is 81/100 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 ABM Industries (FRA:AB4), the current Operating Margin % is 3.93% as of Apr. 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 ABM Industries (FRA:AB4) Overvalued in 2026?
Based on GuruFocus' analysis, ABM Industries stock appears to be undervalued.
The current stock price of €39.00 is trading 17% below its estimated GF Value™ of €46.99.
GuruFocus considers ABM Industries to be Modestly Undervalued.
Key valuation signals for FRA:AB4:
Operating Margin %: 3.93% (17% above median its 10-year median of 3.35)
GF Value™: €46.99 vs. price of €39.00 (17% below fair value)
Industry Position: 37.4% below the Business Services median (#662 of 1070)
No single metric tells the full story. See the FRA:AB4 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ABM Industries Inc is a provider of integrated facility solutions. It offers its solutions through five segments: Business and Industry, Manufacturing and Distribution, Education, Aviation and Technical solutions. The company derives the majority of its revenue from the business and industry segment, which encompasses janitorial, facilities engineering, and parking services for commercial real estate properties and sports and entertainment venues, hospitals, as well as vehicle maintenance and other services to rental car providers. The company mainly operates in the United States of America.
81GF Score
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