Teledyne TechnologiesFRA:TYZ +1.13%93 Operating Margin % is 18.86% as of Mar. 2026, which is 21% above its 10-year median of 15.55. GuruFocus rates FRA:TYZ with a GF Score™ of 93/100 and a GF Value™ of €451.14 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 2,472 Hardware companies, Teledyne Technologies ranks better than 91.18% 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.
Teledyne Technologies Operating Margin % Related Terms
Teledyne Technologies Operating Margin % Historical Data
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The historical data trend for Teledyne 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:TYZ vs MKSI, FTV, TRMB: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Teledyne 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.
Teledyne Technologies Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Teledyne Technologies's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Teledyne 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.
Teledyne 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.
Teledyne Technologies (FRA:TYZ) has a Operating Margin % of 18.86% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Teledyne Technologies and its competitors. This is 21% above median its historical median of 15.55. Over the past decade, Teledyne Technologies' Operating Margin % has ranged from 11.19 to 19.03. According to the industry distribution chart, Teledyne Technologies ranks #218 out of 2472 companies in the Hardware industry, placing it in the top 8.8%.
Is Teledyne Technologies' Operating Margin % too high?
Teledyne Technologies' current Operating Margin % of 18.86% is 21% above median its 10-year median of 15.55. Over the past 10 years, this metric has ranged from a low of 11.19 to a high of 19.03. The Hardware industry median Operating Margin % is 3.80. Teledyne Technologies' value of 18.86% is 396.3% above this industry median. Based on the distribution chart, Teledyne Technologies ranks #218 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Teledyne Technologies has a GF Score™ of 93/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Teledyne Technologies' Operating Margin % compare to MKSI and FTV?
According to the Hardware industry distribution chart, Teledyne Technologies ranks #218 out of 2472 companies for Operating Margin %. This places Teledyne Technologies in the top 9% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Teledyne Technologies' value of 18.86% is 396.3% above this benchmark. Historically, Teledyne Technologies' own Operating Margin % has ranged from 11.19 to 19.03 over the past decade. While the company's 10-year median is 15.55 vs. the industry median of 3.80, Teledyne 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 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. Teledyne Technologies's current Operating Margin % of 18.86% is 396.3% 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 Teledyne Technologies and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Teledyne Technologies's current Operating Margin % is 18.86%, which is 21% above median its own 10-year median of 15.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Teledyne Technologies stock overvalued right now?
Based on GuruFocus' analysis, Teledyne Technologies (FRA:TYZ) is currently considered Modestly Overvalued. The stock's GF Value™ is €451.14, compared to a current price of €537.00 — trading 19% above its estimated fair value. The current Operating Margin % is 18.86%, which is 21% above median its 10-year median of 15.55 and 396.3% above the Hardware industry median of 3.80. Teledyne Technologies' overall GF Score™ is 93/100 with 2 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 Teledyne Technologies (FRA:TYZ), the current Operating Margin % is 18.86% 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 Teledyne Technologies (FRA:TYZ) Overvalued in 2026?
Based on GuruFocus' analysis, Teledyne Technologies stock appears to be overvalued.
The current stock price of €537.00 is trading 19% above its estimated GF Value™ of €451.14.
GuruFocus considers Teledyne Technologies to be Modestly Overvalued.
Key valuation signals for FRA:TYZ:
Operating Margin %: 18.86% (21% above median its 10-year median of 15.55)
GF Value™: €451.14 vs. price of €537.00 (19% above fair value)
Industry Position: 396.3% above the Hardware median (#218 of 2472)
No single metric tells the full story. See the FRA:TYZ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Teledyne Technologies Inc provides enabling technologies to sense, analyze and distribute information for industrial growth markets that require advanced technology and high reliability. The firm operates in four segments: Digital Imaging, Instrumentation, Aerospace and Defense Electronics, and Engineered Systems. The Digital Imaging segment, that derives maximum revenue, includes high-performance sensors, cameras and systems, within the visible, infrared and X-ray spectra for use in industrial, government and medical applications, as well as MEMS and high-performance, high-reliability semiconductors including analog-to-digital and digital-to-analog converters. Geographically, the company operates in United States, Europe, Asia, and All other.
93GF Score
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