Faes FarmaFRA:FFEA -0.44%89 Operating Margin % is 9.39% as of Dec. 2025, which is 58% below its 10-year median of 22.27. GuruFocus rates FRA:FFEA with a GF Score™ of 89/100 and a GF Value™ of €5.06 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Faes Farma ranks better than 70.68% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Faes Farma's Operating Income for the
six
months ended in Dec. 2025 was €29.5 Mil. Faes Farma's Revenue for the
six
months ended in Dec. 2025 was €314.3 Mil. Therefore, Faes Farma's Operating Margin % for the quarter that ended in Dec. 2025 was 9.39%.
Warning Sign:
Faes Farma SA operating margin has been in a 5-year decline. The average rate of decline per year is -7.6%.
The historical rank and industry rank for Faes Farma's Operating Margin % or its related term are showing as below:
FRA:FFEA'
s Operating Margin % Range Over the Past 10 Years
Min: 14.92 Med: 22.27 Max: 24.55
Current: 14.92
FRA:FFEA's Operating Margin % is ranked better than 70.68% of 955
companies
in the Drug Manufacturers industry
Industry Median: 7.45
vs FRA:FFEA: 14.92
Faes Farma's 5-Year Average Operating Margin % Growth Rate was -7.60% per year.
Faes Farma's Operating Income for the
six
months ended in Dec. 2025 was €29.5 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was €91.1 Mil.
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.
Faes Farma Operating Margin % Related Terms
Faes Farma Operating Margin % Historical Data
* Premium members only.
The historical data trend for Faes Farma'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:FFEA vs ZTS, UTHR, VTRS: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Faes Farma'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.
Faes Farma Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Faes Farma's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Faes Farma'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.
Faes Farma'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.
Faes Farma (FRA:FFEA) has a Operating Margin % of 9.39% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Faes Farma and its competitors. This is 58% below median its historical median of 22.27. Over the past decade, Faes Farma's Operating Margin % has ranged from 14.92 to 24.55. According to the industry distribution chart, Faes Farma ranks #280 out of 955 companies in the Drug Manufacturers industry, placing it in the top 29.3%.
Is Faes Farma's Operating Margin % too high?
Faes Farma's current Operating Margin % of 9.39% is 58% below median its 10-year median of 22.27. Over the past 10 years, this metric has ranged from a low of 14.92 to a high of 24.55. The Drug Manufacturers industry median Operating Margin % is 7.45. Faes Farma's value of 9.39% is 26% above this industry median. Based on the distribution chart, Faes Farma ranks #280 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Faes Farma has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Faes Farma's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Faes Farma ranks #280 out of 955 companies for Operating Margin %. This puts Faes Farma in the upper half of its industry. The industry median Operating Margin % is 7.45. Faes Farma's value of 9.39% is 26% above this benchmark. Historically, Faes Farma's own Operating Margin % has ranged from 14.92 to 24.55 over the past decade. While the company's 10-year median is 22.27 vs. the industry median of 7.45, Faes Farma 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Faes Farma's current Operating Margin % of 9.39% is 26% 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 Faes Farma and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Faes Farma's current Operating Margin % is 9.39%, which is 58% below median its own 10-year median of 22.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Faes Farma stock overvalued right now?
Based on GuruFocus' analysis, Faes Farma (FRA:FFEA) is currently considered Modestly Undervalued. The stock's GF Value™ is €5.06, compared to a current price of €4.54 — trading 10.4% below its estimated fair value. The current Operating Margin % is 9.39%, which is 58% below median its 10-year median of 22.27 and 26% above the Drug Manufacturers industry median of 7.45. Faes Farma's overall GF Score™ is 89/100 with 6 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 Faes Farma (FRA:FFEA), the current Operating Margin % is 9.39% 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 Faes Farma (FRA:FFEA) Overvalued in 2026?
Based on GuruFocus' analysis, Faes Farma stock appears to be undervalued.
The current stock price of €4.54 is trading 10.4% below its estimated GF Value™ of €5.06.
GuruFocus considers Faes Farma to be Modestly Undervalued.
Key valuation signals for FRA:FFEA:
Operating Margin %: 9.39% (58% below median its 10-year median of 22.27)
GF Value™: €5.06 vs. price of €4.54 (10.4% below fair value)
Industry Position: 26% above the Drug Manufacturers median (#280 of 955)
No single metric tells the full story. See the FRA:FFEA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Faes Farma SA purpose is manufacturing and selling all kinds of chemical and pharmaceutical products, foodstuffs, cosmetics, dietetics and medicinal plants, as well as acquiring, purchasing, disposing of, investing in, holding, using, managing, administering, marketing and leasing corporations, securities and real estate, patents, trademarks and registered brands and equity interests. It is mainly engaged in the manufacture and sale of pharmaceutical products, as well as in the manufacture and sale of animal nutrition and health products. Its segments are Pharmaceutical and healthcare specialities, Animal nutrition and health, and Other segments. It generates majority of revenue from Pharmaceutical and healthcare specialities. It operates mainly in domestic and international markets.
89GF Score
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