NestleFRA:NESR +2.27%73 Operating Margin % is 14.89% as of Dec. 2025, which is 11% below its 10-year median of 16.79. GuruFocus rates FRA:NESR with a GF Score™ of 73/100 and a GF Value™ of €95.23 (Fairly Valued). The stock has 7 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Nestle ranks better than 86.62% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Nestle's Operating Income for the
six
months ended in Dec. 2025 was €7,255 Mil. Nestle's Revenue for the
six
months ended in Dec. 2025 was €48,733 Mil. Therefore, Nestle's Operating Margin % for the quarter that ended in Dec. 2025 was 14.89%.
Warning Sign:
Nestle SA operating margin has been in a 5-year decline. The average rate of decline per year is -1.3%.
The historical rank and industry rank for Nestle's Operating Margin % or its related term are showing as below:
FRA:NESR'
s Operating Margin % Range Over the Past 10 Years
Min: 15.55 Med: 16.79 Max: 17.27
Current: 15.55
FRA:NESR's Operating Margin % is ranked better than 86.62% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs FRA:NESR: 15.55
Nestle's 5-Year Average Operating Margin % Growth Rate was -1.30% per year.
Nestle's Operating Income for the
six
months ended in Dec. 2025 was €7,255 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was €14,943 Mil.
Nestle (FRA:NESR) 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.
Nestle Operating Margin % Related Terms
Nestle Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nestle'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:NESR vs KHC, GIS, JBS: Operating Margin % Comparison
For the Packaged Foods subindustry, Nestle'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.
Nestle Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nestle'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.
Nestle'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.
Nestle (FRA:NESR) has a Operating Margin % of 14.89% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nestle and its competitors. This is 11% below median its historical median of 16.79. Over the past decade, Nestle's Operating Margin % has ranged from 15.55 to 17.27. According to the industry distribution chart, Nestle ranks #261 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 13.4%.
Is Nestle's Operating Margin % too high?
Nestle's current Operating Margin % of 14.89% is 11% below median its 10-year median of 16.79. Over the past 10 years, this metric has ranged from a low of 15.55 to a high of 17.27. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Nestle's value of 14.89% is 183.1% above this industry median. Based on the distribution chart, Nestle ranks #261 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle's Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle ranks #261 out of 1951 companies for Operating Margin %. This places Nestle in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. Nestle's value of 14.89% is 183.1% above this benchmark. Historically, Nestle's own Operating Margin % has ranged from 15.55 to 17.27 over the past decade. While the company's 10-year median is 16.79 vs. the industry median of 5.26, Nestle 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 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. Nestle's current Operating Margin % of 14.89% is 183.1% 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 Nestle and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle's current Operating Margin % is 14.89%, which is 11% below median its own 10-year median of 16.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle stock overvalued right now?
Based on GuruFocus' analysis, Nestle (FRA:NESR) is currently considered Fairly Valued. The stock's GF Value™ is €95.23, compared to a current price of €86.96 — trading 8.7% below its estimated fair value. The current Operating Margin % is 14.89%, which is 11% below median its 10-year median of 16.79 and 183.1% above the Consumer Packaged Goods industry median of 5.26. Nestle's overall GF Score™ is 73/100 with 7 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 Nestle (FRA:NESR), the current Operating Margin % is 14.89% 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 Nestle (FRA:NESR) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle stock appears to be undervalued.
The current stock price of €86.96 is trading 8.7% below its estimated GF Value™ of €95.23.
GuruFocus considers Nestle to be Fairly Valued.
Key valuation signals for FRA:NESR:
Operating Margin %: 14.89% (11% below median its 10-year median of 16.79)
GF Value™: €95.23 vs. price of €86.96 (8.7% below fair value)
Industry Position: 183.1% above the Consumer Packaged Goods median (#261 of 1951)
No single metric tells the full story. See the FRA:NESR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With a 150-year-plus history, Nestle is the largest food and beverage manufacturer in the world by sales, generating roughly CHF 90 billion in annual revenue. Its diverse product portfolio includes brands such as Nescafe, Maggi, Nespresso, and Purina. The company employs 270,000 people around the world and has a vast portfolio of global products, with more than 30 brands each achieving more than CHF 1 billion in sales annually and a geographic presence that spans 185 countries.
73GF Score
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