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.
Tronox Holdings Operating Margin % Related Terms
Tronox Holdings Operating Margin % Historical Data
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The historical data trend for Tronox Holdings'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:T5X vs GPRE, REX, ASPI: Operating Margin % Comparison
For the Chemicals subindustry, Tronox Holdings'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.
Tronox Holdings Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Tronox Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tronox Holdings'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.
Tronox Holdings'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.
Tronox Holdings (FRA:T5X) has a Operating Margin % of -3.55% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tronox Holdings and its competitors. According to the industry distribution chart, Tronox Holdings ranks #1309 out of 1584 companies in the Chemicals industry, placing it in the top 82.6%.
Is Tronox Holdings' Operating Margin % too high?
Tronox Holdings' current Operating Margin % is -3.55%. Based on the distribution chart, Tronox Holdings ranks #1309 out of 1584 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Tronox Holdings has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tronox Holdings' Operating Margin % compare to GPRE and REX?
According to the Chemicals industry distribution chart, Tronox Holdings ranks #1309 out of 1584 companies for Operating Margin %. This places Tronox Holdings in the lower half of its industry. The industry median Operating Margin % is 6.03. 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 6.03, based on 1,584 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 Tronox Holdings and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tronox Holdings's current Operating Margin % is -3.55%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tronox Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tronox Holdings (FRA:T5X) is currently considered Possible Value Trap. The stock's GF Value™ is €9.09, compared to a current price of €5.85 — trading 35.6% below its estimated fair value. The current Operating Margin % is -3.55%. Tronox Holdings' overall GF Score™ is 60/100 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 Tronox Holdings (FRA:T5X), the current Operating Margin % is -3.55% 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 Tronox Holdings (FRA:T5X) Overvalued in 2026?
Based on GuruFocus' analysis, Tronox Holdings stock appears to be undervalued.
The current stock price of €5.85 is trading 35.6% below its estimated GF Value™ of €9.09.
GuruFocus considers Tronox Holdings to be Possible Value Trap.
Key valuation signals for FRA:T5X:
Operating Margin %: -3.55%
GF Value™: €9.09 vs. price of €5.85 (35.6% below fair value)
No single metric tells the full story. See the FRA:T5X stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tronox Holdings PLC is a vertically integrated manufacturer of TiO2 pigment. It operates titanium-bearing mineral sand mines and beneficiation and smelting operations in Australia & South Africa to produce feedstock materials that can be processed into TiO2 for pigment, high-purity titanium chemicals, including titanium tetrachloride, and ultrafine TiO2 used in certain specialty applications. TiO2 and titanium feedstock, are used to produce paints and coatings, as well as plastics, paper, and printing ink. It has three pigment production facilities in the United States, the Netherlands, and Western Australia and three mining operations in Western Australia and South Africa. Europe, the Middle East, and Africa regions contribute the majority of revenue.
60GF Score
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