Breedon GroupFRA:CQB0 -0.57%84 Operating Margin % is 8.93% as of Dec. 2025, which is 14% below its 10-year median of 10.44. GuruFocus rates FRA:CQB0 with a GF Score™ of 84/100 and a GF Value™ of €5.04. The stock has 3 warning signs investors should review. Among 405 Building Materials companies, Breedon Group ranks better than 50.37% on this metric.
Breedon Group (FRA:CQB0) 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.
Breedon Group Operating Margin % Related Terms
Breedon Group Operating Margin % Historical Data
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The historical data trend for Breedon Group'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:CQB0 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Breedon Group'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.
Breedon Group Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Breedon Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Breedon Group'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.
Breedon Group'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.
Breedon Group (FRA:CQB0) has a Operating Margin % of 8.93% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Breedon Group and its competitors. This is 14% below median its historical median of 10.44. Over the past decade, Breedon Group's Operating Margin % has ranged from 7.66 to 12.81. According to the industry distribution chart, Breedon Group ranks #201 out of 405 companies in the Building Materials industry, placing it in the top 49.6%.
Is Breedon Group's Operating Margin % too high?
Breedon Group's current Operating Margin % of 8.93% is 14% below median its 10-year median of 10.44. Over the past 10 years, this metric has ranged from a low of 7.66 to a high of 12.81. The Building Materials industry median Operating Margin % is 7.64. Breedon Group's value of 8.93% is 16.9% above this industry median. Based on the distribution chart, Breedon Group ranks #201 out of 405 companies in the Building Materials industry, which is above the industry midpoint. Overall, Breedon Group has a GF Score™ of 84/100, reflecting its overall financial health beyond just this single metric.
How does Breedon Group's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Breedon Group ranks #201 out of 405 companies for Operating Margin %. This puts Breedon Group in the upper half of its industry. The industry median Operating Margin % is 7.64. Breedon Group's value of 8.93% is 16.9% above this benchmark. Historically, Breedon Group's own Operating Margin % has ranged from 7.66 to 12.81 over the past decade. While the company's 10-year median is 10.44 vs. the industry median of 7.64, Breedon Group 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.64, based on 405 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. Breedon Group's current Operating Margin % of 8.93% is 16.9% 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 Breedon Group and its competitors. For the Building Materials industry, the median Operating Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Breedon Group's current Operating Margin % is 8.93%, which is 14% below median its own 10-year median of 10.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Breedon Group stock overvalued right now?
Breedon Group (FRA:CQB0) has a current Operating Margin % of 8.93%. The stock's GF Value™ is €5.04, compared to a current price of €3.50 — trading 30.6% below its estimated fair value. The current Operating Margin % is 8.93%, which is 14% below median its 10-year median of 10.44 and 16.9% above the Building Materials industry median of 7.64. Breedon Group's overall GF Score™ is 84/100 with 3 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 Breedon Group (FRA:CQB0), the current Operating Margin % is 8.93% as of Dec. 2025. 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 Breedon Group (FRA:CQB0) Overvalued in 2026?
Based on GuruFocus' analysis, Breedon Group stock appears to be undervalued.
The current stock price of €3.50 is trading 30.6% below its estimated GF Value™ of €5.04.
Key valuation signals for FRA:CQB0:
Operating Margin %: 8.93% (14% below median its 10-year median of 10.44)
GF Value™: €5.04 vs. price of €3.50 (30.6% below fair value)
Industry Position: 16.9% above the Building Materials median (#201 of 405)
No single metric tells the full story. See the FRA:CQB0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Breedon Group PLC is a producer of construction materials. The products include aggregates such as polished stone value stones, sub-base materials and sands for the road construction industry, milled limestones for agricultural applications, asphalt, ready-mix concrete, concrete beams and blocks, cement, and others. The company's customers range from civil engineering business over local authorities and utilities companies to homes and smaller businesses. The company generates majority of its revenue in the United Kingdom.
84GF Score
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