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Sensient TechnologiesFRA:SSF +14.43%81 Operating Margin % is 15.31% as of Mar. 2026, which is 24% above its 10-year median of 12.32. GuruFocus rates FRA:SSF with a GF Score™ of 81/100 and a GF Value™ of €75.51 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,578 Chemicals companies, Sensient Technologies ranks better than 78.26% on this metric.
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.
Sensient Technologies Operating Margin % Related Terms
Sensient Technologies Operating Margin % Historical Data
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The historical data trend for Sensient Technologies'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:SSF vs CBT, BCPC, PRM: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Sensient Technologies'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.
Sensient Technologies Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Sensient Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sensient Technologies'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.
Sensient Technologies'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.
Sensient Technologies (FRA:SSF) has a Operating Margin % of 15.31% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sensient Technologies and its competitors. This is 24% above median its historical median of 12.32. Over the past decade, Sensient Technologies' Operating Margin % has ranged from 9.15 to 14.67. According to the industry distribution chart, Sensient Technologies ranks #343 out of 1578 companies in the Chemicals industry, placing it in the top 21.7%.
Is Sensient Technologies' Operating Margin % too high?
Sensient Technologies' current Operating Margin % of 15.31% is 24% above median its 10-year median of 12.32. Over the past 10 years, this metric has ranged from a low of 9.15 to a high of 14.67. The Chemicals industry median Operating Margin % is 6.05. Sensient Technologies' value of 15.31% is 153.3% above this industry median. Based on the distribution chart, Sensient Technologies ranks #343 out of 1578 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Sensient Technologies has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sensient Technologies' Operating Margin % compare to CBT and BCPC?
According to the Chemicals industry distribution chart, Sensient Technologies ranks #343 out of 1578 companies for Operating Margin %. This places Sensient Technologies in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.05. Sensient Technologies' value of 15.31% is 153.3% above this benchmark. Historically, Sensient Technologies' own Operating Margin % has ranged from 9.15 to 14.67 over the past decade. While the company's 10-year median is 12.32 vs. the industry median of 6.05, Sensient Technologies 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.05, based on 1,578 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. Sensient Technologies's current Operating Margin % of 15.31% is 153.3% 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 Sensient Technologies and its competitors. For the Chemicals industry, the median Operating Margin % is 6.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sensient Technologies's current Operating Margin % is 15.31%, which is 24% above median its own 10-year median of 12.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sensient Technologies stock overvalued right now?
Based on GuruFocus' analysis, Sensient Technologies (FRA:SSF) is currently considered Significantly Overvalued. The stock's GF Value™ is €75.51, compared to a current price of €111.00 — trading 47% above its estimated fair value. The current Operating Margin % is 15.31%, which is 24% above median its 10-year median of 12.32 and 153.3% above the Chemicals industry median of 6.05. Sensient Technologies' overall GF Score™ is 81/100 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 Sensient Technologies (FRA:SSF), the current Operating Margin % is 15.31% 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 Sensient Technologies (FRA:SSF) Overvalued in 2026?
Based on GuruFocus' analysis, Sensient Technologies stock appears to be overvalued.
The current stock price of €111.00 is trading 47% above its estimated GF Value™ of €75.51.
GuruFocus considers Sensient Technologies to be Significantly Overvalued.
Key valuation signals for FRA:SSF:
Operating Margin %: 15.31% (24% above median its 10-year median of 12.32)
GF Value™: €75.51 vs. price of €111.00 (47% above fair value)
Industry Position: 153.3% above the Chemicals median (#343 of 1578)
No single metric tells the full story. See the FRA:SSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sensient Technologies Corp manufactures and markets natural and synthetic colors, flavors, and other specialty ingredients. Sensient's offerings are predominantly applied to consumer-facing products, including food and beverage, cosmetics and pharmaceuticals, nutraceuticals, and personal care industries. Its principal products are flavors, flavor enhancers, ingredients, extracts, and bionutrients, essential oils, dehydrated vegetables and other food ingredients, natural and synthetic food and beverage colors, and others. The company's reportable segments are: Flavors & Extracts, which derive key revenue, Color, Asia Pacific, and Corporate and Other. Geographically, the company generates maximum revenue from North America, followed by Europe, Asia-Pacific, and other regions.
81GF Score
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