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Forward AirFWRD +3.00%56 Operating Margin % is 3.51% as of Mar. 2026, which is 62% below its 10-year median of 9.28. GuruFocus rates FWRD with a GF Score™ of 56/100 and a GF Value™ of $32.72 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,003 Transportation companies, Forward Air ranks worse than 76.57% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Forward Air's Operating Income for the
three
months ended in Mar. 2026 was $20 Mil. Forward Air's Revenue for the
three
months ended in Mar. 2026 was $582 Mil. Therefore, Forward Air's Operating Margin % for the quarter that ended in Mar. 2026 was 3.51%.
The historical rank and industry rank for Forward Air's Operating Margin % or its related term are showing as below:
FWRD'
s Operating Margin % Range Over the Past 10 Years
Min: -1.4 Med: 9.28 Max: 14.74
Current: 2.12
FWRD's Operating Margin % is ranked worse than 76.57% of 1003
companies
in the Transportation industry
Industry Median: 7.22
vs FWRD: 2.12
Forward Air's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Forward Air's Operating Income for the
three
months ended in Mar. 2026 was $20 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $52 Mil.
Forward Air (NAS:FWRD) 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.
Forward Air Operating Margin % Related Terms
Forward Air Operating Margin % Historical Data
* Premium members only.
The historical data trend for Forward Air'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.
FWRD vs RLGT, CYRX, PAL: Operating Margin % Comparison
For the Integrated Freight & Logistics subindustry, Forward Air'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.
Forward Air Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Forward Air's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Forward Air'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.
Forward Air'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.
Forward Air (FWRD) has a Operating Margin % of 3.51% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Forward Air and its competitors. This is 62% below median its historical median of 9.28. According to the industry distribution chart, Forward Air ranks #768 out of 1003 companies in the Transportation industry, placing it in the top 76.6%.
Is Forward Air's Operating Margin % too high?
Forward Air's current Operating Margin % of 3.51% is 62% below median its 10-year median of 9.28. The Transportation industry median Operating Margin % is 7.22. Forward Air's value of 3.51% is 51.4% below this industry median. Based on the distribution chart, Forward Air ranks #768 out of 1003 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Forward Air has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Forward Air's Operating Margin % compare to RLGT and CYRX?
According to the Transportation industry distribution chart, Forward Air ranks #768 out of 1003 companies for Operating Margin %. This places Forward Air in the lower half of its industry. The industry median Operating Margin % is 7.22. Forward Air's value of 3.51% is 51.4% below this benchmark. While the company's 10-year median is 9.28 vs. the industry median of 7.22, Forward Air 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.22, based on 1,003 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. Forward Air's current Operating Margin % of 3.51% is 51.4% 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 Forward Air and its competitors. For the Transportation industry, the median Operating Margin % is 7.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forward Air's current Operating Margin % is 3.51%, which is 62% below median its own 10-year median of 9.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forward Air stock overvalued right now?
Based on GuruFocus' analysis, Forward Air (FWRD) is currently considered Possible Value Trap. The stock's GF Value™ is $32.72, compared to a current price of $15.11 — trading 53.8% below its estimated fair value. The current Operating Margin % is 3.51%, which is 62% below median its 10-year median of 9.28 and 51.4% below the Transportation industry median of 7.22. Forward Air's overall GF Score™ is 56/100 with 7 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 Forward Air (FWRD), the current Operating Margin % is 3.51% 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 Forward Air (FWRD) Overvalued in 2026?
Based on GuruFocus' analysis, Forward Air stock appears to be undervalued.
The current stock price of $15.11 is trading 53.8% below its estimated GF Value™ of $32.72.
GuruFocus considers Forward Air to be Possible Value Trap.
Key valuation signals for FWRD:
Operating Margin %: 3.51% (62% below median its 10-year median of 9.28)
GF Value™: $32.72 vs. price of $15.11 (53.8% below fair value)
Industry Position: 51.4% below the Transportation median (#768 of 1003)
No single metric tells the full story. See the FWRD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forward Air Corp is an asset-light freight and logistics company. The company's operating segment includes Expedited Freight, Omni Logistics, and Intermodal and Corporate. The company generates maximum revenue from the Omni Logistics segment. The expedited Freight segment operates a comprehensive national network to provide expedited regional, inter-regional, and national LTL (less-than-truckload) services. It also offers customers local pick-up and delivery and other services including final mile, truckload, shipment consolidation and deconsolidation, warehousing, customs brokerage, and other handling. The Company conducts business in North and South America, Europe, and Asia.
56GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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