Green Thumb IndustriesGTBIF +1.08%85 Operating Margin % is 13.57% as of Mar. 2026, which is 29% below its 10-year median of 19.06. GuruFocus rates GTBIF with a GF Score™ of 85/100 and a GF Value™ of $8.89 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Green Thumb Industries ranks better than 59.27% on this metric.
Green Thumb Industries (OTCPK:GTBIF) 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.
Green Thumb Industries Operating Margin % Related Terms
Green Thumb Industries Operating Margin % Historical Data
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The historical data trend for Green Thumb Industries'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Green Thumb Industries'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.
Green Thumb Industries Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Green Thumb Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Green Thumb Industries's Operating Margin % falls into.
Green Thumb Industries 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.
Green Thumb Industries'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.
Green Thumb Industries (GTBIF) has a Operating Margin % of 13.57% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Green Thumb Industries and its competitors. This is 29% below median its historical median of 19.06. According to the industry distribution chart, Green Thumb Industries ranks #389 out of 955 companies in the Drug Manufacturers industry, placing it in the top 40.7%.
Is Green Thumb Industries' Operating Margin % too high?
Green Thumb Industries' current Operating Margin % of 13.57% is 29% below median its 10-year median of 19.06. The Drug Manufacturers industry median Operating Margin % is 7.45. Green Thumb Industries' value of 13.57% is 82.1% above this industry median. Based on the distribution chart, Green Thumb Industries ranks #389 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Green Thumb Industries has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Green Thumb Industries' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Green Thumb Industries ranks #389 out of 955 companies for Operating Margin %. This puts Green Thumb Industries in the upper half of its industry. The industry median Operating Margin % is 7.45. Green Thumb Industries' value of 13.57% is 82.1% above this benchmark. While the company's 10-year median is 19.06 vs. the industry median of 7.45, Green Thumb Industries 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Green Thumb Industries's current Operating Margin % of 13.57% is 82.1% 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 Green Thumb Industries and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Green Thumb Industries's current Operating Margin % is 13.57%, which is 29% below median its own 10-year median of 19.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Green Thumb Industries stock overvalued right now?
Based on GuruFocus' analysis, Green Thumb Industries (GTBIF) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.89, compared to a current price of $7.47 — trading 16% below its estimated fair value. The current Operating Margin % is 13.57%, which is 29% below median its 10-year median of 19.06 and 82.1% above the Drug Manufacturers industry median of 7.45. Green Thumb Industries' overall GF Score™ is 85/100 with 6 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 Green Thumb Industries (GTBIF), the current Operating Margin % is 13.57% 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 Green Thumb Industries (GTBIF) Overvalued in 2026?
Based on GuruFocus' analysis, Green Thumb Industries stock appears to be undervalued.
The current stock price of $7.47 is trading 16% below its estimated GF Value™ of $8.89.
GuruFocus considers Green Thumb Industries to be Modestly Undervalued.
Key valuation signals for GTBIF:
Operating Margin %: 13.57% (29% below median its 10-year median of 19.06)
GF Value™: $8.89 vs. price of $7.47 (16% below fair value)
Industry Position: 82.1% above the Drug Manufacturers median (#389 of 955)
No single metric tells the full story. See the GTBIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Green Thumb Industries is headquartered in Chicago, Illinois, and produces and sells medicinal and recreational cannabis through wholesale and retail channels in the United States. It has a presence in 14 states and operates more than 100 cannabis stores under the brand Rise. GTI is focusing its expansion on limited-license states with large populations, and it does not currently export into the global medical market due to the USA federal prohibition. It offers multiple products under a portfolio of cannabis consumer packaged goods brands, including &Shine, Beboe, Dogwalkers, Doctor Solomon's, Good Green, Incredibles, and RYTHM.
85GF Score
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