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.
Fab-Form Industries Operating Margin % Related Terms
Fab-Form Industries Operating Margin % Historical Data
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The historical data trend for Fab-Form Industries'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:OO0 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Fab-Form Industries'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.
Fab-Form Industries Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Fab-Form Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fab-Form Industries'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.
Fab-Form Industries'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.
Fab-Form Industries (FRA:OO0) has a Operating Margin % of -11.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fab-Form Industries and its competitors. Over the past decade, Fab-Form Industries' Operating Margin % has ranged from 5.65 to 28.21. According to the industry distribution chart, Fab-Form Industries ranks #232 out of 403 companies in the Building Materials industry, placing it in the top 57.6%.
Is Fab-Form Industries' Operating Margin % too high?
Fab-Form Industries' current Operating Margin % is -11.94%. Over the past 10 years, this metric has ranged from a low of 5.65 to a high of 28.21. Based on the distribution chart, Fab-Form Industries ranks #232 out of 403 companies in the Building Materials industry, which is below the industry midpoint. Overall, Fab-Form Industries has a GF Score™ of 52/100, reflecting its overall financial health beyond just this single metric.
How does Fab-Form Industries' Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Fab-Form Industries ranks #232 out of 403 companies for Operating Margin %. This places Fab-Form Industries in the lower half of its industry. The industry median Operating Margin % is 7.62. Historically, Fab-Form Industries' own Operating Margin % has ranged from 5.65 to 28.21 over the past decade. 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.62, based on 403 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. 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 Fab-Form Industries and its competitors. For the Building Materials industry, the median Operating Margin % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fab-Form Industries's current Operating Margin % is -11.94%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fab-Form Industries stock overvalued right now?
Fab-Form Industries (FRA:OO0) has a current Operating Margin % of -11.94%. The stock's GF Value™ is €0.84, compared to a current price of €0.59 — trading 29.9% below its estimated fair value. The current Operating Margin % is -11.94%. Fab-Form Industries' overall GF Score™ is 52/100 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 Fab-Form Industries (FRA:OO0), the current Operating Margin % is -11.94% 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 Fab-Form Industries (FRA:OO0) Overvalued in 2026?
Based on GuruFocus' analysis, Fab-Form Industries stock appears to be undervalued.
The current stock price of €0.59 is trading 29.9% below its estimated GF Value™ of €0.84.
Key valuation signals for FRA:OO0:
Operating Margin %: -11.94%
GF Value™: €0.84 vs. price of €0.59 (29.9% below fair value)
No single metric tells the full story. See the FRA:OO0 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fab-Form Industries Ltd is a Canadian-based company that develops, manufactures, and distributes proprietary technology to form concrete footings, columns, foundations, and walls for building structures. The company also distributes Helix micro rebar into the BC market and Nudura insulating concrete form into the Lower Mainland of BC market.
52GF 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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