Intertek GroupFRA:IT1 -0.15%80 Operating Margin % is 16.10% as of Dec. 2025, which is 2% above its 10-year median of 15.80. GuruFocus rates FRA:IT1 with a GF Score™ of 80/100 and a GF Value™ of €56.75 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,070 Business Services companies, Intertek Group ranks better than 80.19% on this metric.
Intertek Group (FRA:IT1) 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.
Intertek Group Operating Margin % Related Terms
Intertek Group Operating Margin % Historical Data
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The historical data trend for Intertek 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:IT1 vs CTAS, CPRT, GPN: Operating Margin % Comparison
For the Specialty Business Services subindustry, Intertek 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.
Intertek Group Operating Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Intertek Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Intertek 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.
Intertek 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.
Intertek Group (FRA:IT1) has a Operating Margin % of 16.10% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Intertek Group and its competitors. This is near median its historical median of 15.80. Over the past decade, Intertek Group's Operating Margin % has ranged from 14.17 to 16.58. According to the industry distribution chart, Intertek Group ranks #212 out of 1070 companies in the Business Services industry, placing it in the top 19.8%.
Is Intertek Group's Operating Margin % too high?
Intertek Group's current Operating Margin % of 16.10% is near median its 10-year median of 15.80. Over the past 10 years, this metric has ranged from a low of 14.17 to a high of 16.58. The Business Services industry median Operating Margin % is 6.28. Intertek Group's value of 16.10% is 156.6% above this industry median. Based on the distribution chart, Intertek Group ranks #212 out of 1070 companies in the Business Services industry, which is in the top quartile — a strong position relative to peers. Overall, Intertek Group has a GF Score™ of 80/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Intertek Group's Operating Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Intertek Group ranks #212 out of 1070 companies for Operating Margin %. This places Intertek Group in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.28. Intertek Group's value of 16.10% is 156.6% above this benchmark. Historically, Intertek Group's own Operating Margin % has ranged from 14.17 to 16.58 over the past decade. While the company's 10-year median is 15.80 vs. the industry median of 6.28, Intertek 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 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. Intertek Group's current Operating Margin % of 16.10% is 156.6% 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 Intertek Group 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. Intertek Group's current Operating Margin % is 16.10%, which is near median its own 10-year median of 15.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Intertek Group stock overvalued right now?
Based on GuruFocus' analysis, Intertek Group (FRA:IT1) is currently considered Modestly Overvalued. The stock's GF Value™ is €56.75, compared to a current price of €67.10 — trading 18.2% above its estimated fair value. The current Operating Margin % is 16.10%, which is near median its 10-year median of 15.80 and 156.6% above the Business Services industry median of 6.28. Intertek Group's overall GF Score™ is 80/100 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 Intertek Group (FRA:IT1), the current Operating Margin % is 16.10% 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 Intertek Group (FRA:IT1) Overvalued in 2026?
Based on GuruFocus' analysis, Intertek Group stock appears to be overvalued.
The current stock price of €67.10 is trading 18.2% above its estimated GF Value™ of €56.75.
GuruFocus considers Intertek Group to be Modestly Overvalued.
Key valuation signals for FRA:IT1:
Operating Margin %: 16.10% (near median its 10-year median of 15.80)
GF Value™: €56.75 vs. price of €67.10 (18.2% above fair value)
Industry Position: 156.6% above the Business Services median (#212 of 1070)
No single metric tells the full story. See the FRA:IT1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Intertek is one of the largest and oldest companies in the testing, inspection, and certification industry. Its primary activities include testing products and materials, inspecting sites/industrial equipment, and certifying products and systems to ensure compliance with global/company standards. Intertek is one of only three TIC companies operating globally across multiple industries. The firm was listed in 2002 following Charterhouse's divestment. It employs over 40,000 people worldwide.
80GF Score
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