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.
Olympic Steel Operating Margin % Related Terms
Olympic Steel Operating Margin % Historical Data
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The historical data trend for Olympic Steel'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:OYS vs MSB, NWPX, MTUS: Operating Margin % Comparison
For the Steel subindustry, Olympic Steel'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.
Olympic Steel Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Olympic Steel's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Olympic Steel'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.
Olympic Steel's Operating Margin % for the fiscal year that ended in Dec. 2024 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.
Olympic Steel (FRA:OYS) has a Operating Margin % of 1.48% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Olympic Steel and its competitors. This is 31% below median its historical median of 2.13.
Is Olympic Steel's Operating Margin % too high?
Olympic Steel's current Operating Margin % of 1.48% is 31% below median its 10-year median of 2.13. The Steel industry median Operating Margin % is 3.00. Olympic Steel's value of 1.48% is 50.7% below this industry median. Overall, Olympic Steel has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does Olympic Steel's Operating Margin % compare to MSB and NWPX?
Olympic Steel's Operating Margin % of 1.48% can be compared against companies in the Steel industry. The industry median Operating Margin % is 3.00. Olympic Steel's value of 1.48% is 50.7% below this benchmark. While the company's 10-year median is 2.13 vs. the industry median of 3.00, Olympic Steel has consistently been below 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 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. Olympic Steel's current Operating Margin % of 1.48% is 50.7% 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 Olympic Steel and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Olympic Steel's current Operating Margin % is 1.48%, which is 31% below median its own 10-year median of 2.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Olympic Steel stock overvalued right now?
Olympic Steel (FRA:OYS) has a current Operating Margin % of 1.48%. The stock's GF Value™ is €32.26, compared to a current price of €42.40 — trading 31.4% above its estimated fair value. The current Operating Margin % is 1.48%, which is 31% below median its 10-year median of 2.13 and 50.7% below the Steel industry median of 3.00. Olympic Steel's overall GF Score™ is 58/100 with 8 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 Olympic Steel (FRA:OYS), the current Operating Margin % is 1.48% as of Sep. 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 Olympic Steel (FRA:OYS) Overvalued in 2026?
Based on GuruFocus' analysis, Olympic Steel stock appears to be overvalued.
The current stock price of €42.40 is trading 31.4% above its estimated GF Value™ of €32.26.
Key valuation signals for FRA:OYS:
Operating Margin %: 1.48% (31% below median its 10-year median of 2.13)
GF Value™: €32.26 vs. price of €42.40 (31.4% above fair value)
No single metric tells the full story. See the FRA:OYS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Olympic Steel Inc provides metals processing and distribution services in the United States. The company operates in three reportable segments; specialty metals flat products, carbon flat products, and tubular and pipe products. It specializes in the processing and distribution of large volumes of carbon, aluminum, and stainless steel flat-rolled sheet, coils, plates, bars, and fabricated parts. The group serves various industries such as industrial machinery and equipment manufacturers, automobile manufacturers and suppliers, and transportation equipment manufacturers. The company generates majority of the revenue from carbon flat products.
58GF Score
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