United Natural FoodsFRA:UN3 +2.49%58 Operating Margin % is 1.23% as of Apr. 2026, which is 2% below its 10-year median of 1.25. GuruFocus rates FRA:UN3 with a GF Score™ of 58/100 and a GF Value™ of €18.80 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 310 Retail - Defensive companies, United Natural Foods ranks worse than 78.39% on this metric.
United Natural Foods (FRA:UN3) Operating Margin % Explanation
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.
United Natural Foods Operating Margin % Related Terms
United Natural Foods Operating Margin % Historical Data
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The historical data trend for United Natural Foods'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:UN3 vs CHEF, ANDE, AVO: Operating Margin % Comparison
For the Food Distribution subindustry, United Natural Foods'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.
United Natural Foods Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, United Natural Foods's Operating Margin % distribution charts can be found below:
* The bar in red indicates where United Natural Foods's Operating Margin % falls into.
United Natural Foods Operating Margin % Calculation
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.
United Natural Foods's Operating Margin % for the fiscal year that ended in Jul. 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.
United Natural Foods (FRA:UN3) has a Operating Margin % of 1.23% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on United Natural Foods and its competitors. This is near median its historical median of 1.25. Over the past decade, United Natural Foods' Operating Margin % has ranged from 0.33 to 2.71. According to the industry distribution chart, United Natural Foods ranks #243 out of 310 companies in the Retail - Defensive industry, placing it in the top 78.4%.
Is United Natural Foods' Operating Margin % too high?
United Natural Foods' current Operating Margin % of 1.23% is near median its 10-year median of 1.25. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 2.71. The Retail - Defensive industry median Operating Margin % is 3.28. United Natural Foods' value of 1.23% is 62.4% below this industry median. Based on the distribution chart, United Natural Foods ranks #243 out of 310 companies in the Retail - Defensive industry, which is in the bottom quartile relative to peers. Overall, United Natural Foods has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does United Natural Foods' Operating Margin % compare to CHEF and ANDE?
According to the Retail - Defensive industry distribution chart, United Natural Foods ranks #243 out of 310 companies for Operating Margin %. This places United Natural Foods in the lower half of its industry. The industry median Operating Margin % is 3.28. United Natural Foods' value of 1.23% is 62.4% below this benchmark. Historically, United Natural Foods' own Operating Margin % has ranged from 0.33 to 2.71 over the past decade. While the company's 10-year median is 1.25 vs. the industry median of 3.28, United Natural Foods 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 Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 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. United Natural Foods's current Operating Margin % of 1.23% is 62.4% 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 United Natural Foods and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. United Natural Foods's current Operating Margin % is 1.23%, which is near median its own 10-year median of 1.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is United Natural Foods stock overvalued right now?
Based on GuruFocus' analysis, United Natural Foods (FRA:UN3) is currently considered Significantly Overvalued. The stock's GF Value™ is €18.80, compared to a current price of €44.47 — trading 136.5% above its estimated fair value. The current Operating Margin % is 1.23%, which is near median its 10-year median of 1.25 and 62.4% below the Retail - Defensive industry median of 3.28. United Natural Foods' 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 United Natural Foods (FRA:UN3), the current Operating Margin % is 1.23% as of Apr. 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 United Natural Foods (FRA:UN3) Overvalued in 2026?
Based on GuruFocus' analysis, United Natural Foods stock appears to be overvalued.
The current stock price of €44.47 is trading 136.5% above its estimated GF Value™ of €18.80.
GuruFocus considers United Natural Foods to be Significantly Overvalued.
Key valuation signals for FRA:UN3:
Operating Margin %: 1.23% (near median its 10-year median of 1.25)
GF Value™: €18.80 vs. price of €44.47 (136.5% above fair value)
Industry Position: 62.4% below the Retail - Defensive median (#243 of 310)
No single metric tells the full story. See the FRA:UN3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
United Natural Foods Inc is a wholesale distributor of natural, organic and specialty foods and nonfood products across North America. The company's products consist of national, regional and private label brands grouped into grocery and general merchandise, produce, perishables and frozen foods, nutritional supplements and sports nutrition, bulk and foodservice products, and personal care items. United Natural Foods serves various retail formats including conventional supermarket chains, natural product superstores, independent retail operators and foodservice channels such as e-commerce platforms. The company's operations are comprised of principal divisions: the wholesale division; the retail division; and other.
58GF Score
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