Matrix Service Co (FRA:MX2) 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.
Matrix Service Co Operating Margin % Related Terms
Matrix Service Co Operating Margin % Historical Data
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The historical data trend for Matrix Service Co'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:MX2 vs BBCP, PHOE, ESOA: Operating Margin % Comparison
For the Engineering & Construction subindustry, Matrix Service Co'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.
Matrix Service Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Matrix Service Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Matrix Service Co'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.
Matrix Service Co's Operating Margin % for the fiscal year that ended in Jun. 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.
Matrix Service Co (FRA:MX2) has a Operating Margin % of 0.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Matrix Service Co and its competitors. According to the industry distribution chart, Matrix Service Co ranks #1424 out of 1767 companies in the Construction industry, placing it in the top 80.6%.
Is Matrix Service Co's Operating Margin % too high?
Matrix Service Co's current Operating Margin % is 0.94%. The Construction industry median Operating Margin % is 5.89. Matrix Service Co's value of 0.94% is 84% below this industry median. Based on the distribution chart, Matrix Service Co ranks #1424 out of 1767 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Matrix Service Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Matrix Service Co's Operating Margin % compare to BBCP and PHOE?
According to the Construction industry distribution chart, Matrix Service Co ranks #1424 out of 1767 companies for Operating Margin %. This places Matrix Service Co in the lower half of its industry. The industry median Operating Margin % is 5.89. Matrix Service Co's value of 0.94% is 84% below this benchmark. 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Matrix Service Co's current Operating Margin % of 0.94% is 84% 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 Matrix Service Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Matrix Service Co's current Operating Margin % is 0.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Matrix Service Co stock overvalued right now?
Based on GuruFocus' analysis, Matrix Service Co (FRA:MX2) is currently considered Fairly Valued. The stock's GF Value™ is €10.92, compared to a current price of €11.90 — trading 9% above its estimated fair value. The current Operating Margin % is 0.94% and 84% below the Construction industry median of 5.89. Matrix Service Co's overall GF Score™ is 69/100 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 Matrix Service Co (FRA:MX2), the current Operating Margin % is 0.94% 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 Matrix Service Co (FRA:MX2) Overvalued in 2026?
Based on GuruFocus' analysis, Matrix Service Co stock appears to be overvalued.
The current stock price of €11.90 is trading 9% above its estimated GF Value™ of €10.92.
GuruFocus considers Matrix Service Co to be Fairly Valued.
Key valuation signals for FRA:MX2:
Operating Margin %: 0.94%
GF Value™: €10.92 vs. price of €11.90 (9% above fair value)
Industry Position: 84% below the Construction median (#1424 of 1767)
No single metric tells the full story. See the FRA:MX2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Matrix Service Co provides engineering, fabrication, construction, maintenance, and repair services prominently to the energy and industrial markets. The company operates through three main segments: Storage and Terminal Solutions, Utility and Power Infrastructure, and Process and Industrial Facilities. These segments cover services like building and maintaining storage tanks and terminals, supporting power delivery and new power generation projects including renewables, as well as plant maintenance and turnarounds for refining and petrochemical industries. Matrix generates revenue by delivering these services to clients in oil, gas, power, and petrochemical sectors across North America and internationally.
69GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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