PT Gudang Garam TbkFRA:GGG 51 Operating Margin % is 10.05% as of Mar. 2026, which is 33% above its 10-year median of 7.53. GuruFocus rates FRA:GGG with a GF Score™ of 51/100 and a GF Value™ of €0.68 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 48 Tobacco Products companies, PT Gudang Garam Tbk ranks worse than 66.67% 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.
PT Gudang Garam Tbk Operating Margin % Related Terms
PT Gudang Garam Tbk Operating Margin % Historical Data
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The historical data trend for PT Gudang Garam Tbk'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:GGG vs PM, MO, TPB: Operating Margin % Comparison
For the Tobacco subindustry, PT Gudang Garam Tbk'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.
PT Gudang Garam Tbk Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, PT Gudang Garam Tbk's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PT Gudang Garam Tbk'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.
PT Gudang Garam Tbk'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.
PT Gudang Garam Tbk (FRA:GGG) has a Operating Margin % of 10.05% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PT Gudang Garam Tbk and its competitors. This is 33% above median its historical median of 7.53. Over the past decade, PT Gudang Garam Tbk's Operating Margin % has ranged from 1.90 to 13.66. According to the industry distribution chart, PT Gudang Garam Tbk ranks #32 out of 48 companies in the Tobacco Products industry, placing it in the top 66.7%.
Is PT Gudang Garam Tbk's Operating Margin % too high?
PT Gudang Garam Tbk's current Operating Margin % of 10.05% is 33% above median its 10-year median of 7.53. Over the past 10 years, this metric has ranged from a low of 1.90 to a high of 13.66. The Tobacco Products industry median Operating Margin % is 9.37. PT Gudang Garam Tbk's value of 10.05% is 7.3% above this industry median. Based on the distribution chart, PT Gudang Garam Tbk ranks #32 out of 48 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, PT Gudang Garam Tbk has a GF Score™ of 51/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does PT Gudang Garam Tbk's Operating Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, PT Gudang Garam Tbk ranks #32 out of 48 companies for Operating Margin %. This places PT Gudang Garam Tbk in the lower half of its industry. The industry median Operating Margin % is 9.37. PT Gudang Garam Tbk's value of 10.05% is 7.3% above this benchmark. Historically, PT Gudang Garam Tbk's own Operating Margin % has ranged from 1.90 to 13.66 over the past decade. While the company's 10-year median is 7.53 vs. the industry median of 9.37, PT Gudang Garam Tbk 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 Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 9.37, based on 48 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. PT Gudang Garam Tbk's current Operating Margin % of 10.05% is 7.3% 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 PT Gudang Garam Tbk and its competitors. For the Tobacco Products industry, the median Operating Margin % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Gudang Garam Tbk's current Operating Margin % is 10.05%, which is 33% above median its own 10-year median of 7.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Gudang Garam Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Gudang Garam Tbk (FRA:GGG) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.68, compared to a current price of €0.81 — trading 19.1% above its estimated fair value. The current Operating Margin % is 10.05%, which is 33% above median its 10-year median of 7.53 and 7.3% above the Tobacco Products industry median of 9.37. PT Gudang Garam Tbk's overall GF Score™ is 51/100 with 9 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 PT Gudang Garam Tbk (FRA:GGG), the current Operating Margin % is 10.05% 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 PT Gudang Garam Tbk (FRA:GGG) Overvalued in 2026?
Based on GuruFocus' analysis, PT Gudang Garam Tbk stock appears to be overvalued.
The current stock price of €0.81 is trading 19.1% above its estimated GF Value™ of €0.68.
GuruFocus considers PT Gudang Garam Tbk to be Modestly Overvalued.
Key valuation signals for FRA:GGG:
Operating Margin %: 10.05% (33% above median its 10-year median of 7.53)
GF Value™: €0.68 vs. price of €0.81 (19.1% above fair value)
Industry Position: 7.3% above the Tobacco Products median (#32 of 48)
No single metric tells the full story. See the FRA:GGG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Gudang Garam Tbk manufactures kretek cigarettes, which are clove cigarettes common in Indonesia. The firm's operations are almost entirely domestic, with its tobacco and clove farmers. Nearly majority of the company's sales are generated in Indonesia. The company's brand families include Gudang Garam, Merah, and others. Other brands include Sriwedari, which is a hand-rolled brand, and Klobot. The company's segment includes Cigarettes, Paperboard, Infrastructure, and Others. The company generates the majority of revenue from sale of Cigarettes.
51GF Score
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