Procter & Gamble CoHAM:PRG +1.63%81 Operating Margin % is 21.55% as of Mar. 2026, which is 3% below its 10-year median of 22.13. GuruFocus rates HAM:PRG with a GF Score™ of 81/100 and a GF Value™ of €147.36 (Fairly Valued). Among 1,951 Consumer Packaged Goods companies, Procter & Gamble Co ranks better than 94.57% on this metric.
Procter & Gamble Co operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Procter & Gamble Co's Operating Margin % or its related term are showing as below:
HAM:PRG'
s Operating Margin % Range Over the Past 10 Years
Min: 19.99 Med: 22.13 Max: 24.26
Current: 23.24
HAM:PRG's Operating Margin % is ranked better than 94.57% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs HAM:PRG: 23.24
Procter & Gamble Co's 5-Year Average Operating Margin % Growth Rate was 1.30% per year.
Procter & Gamble Co (HAM:PRG) 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.
Procter & Gamble Co Operating Margin % Related Terms
Procter & Gamble Co Operating Margin % Historical Data
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The historical data trend for Procter & Gamble Co'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.
HAM:PRG vs CL, KVUE, KMB: Operating Margin % Comparison
For the Household & Personal Products subindustry, Procter & Gamble Co'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.
Procter & Gamble Co Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Procter & Gamble Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Procter & Gamble Co's Operating Margin % falls into.
Procter & Gamble Co 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.
Procter & Gamble Co's Operating Margin % for the fiscal year that ended in Jun. 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.
Procter & Gamble Co (HAM:PRG) has a Operating Margin % of 21.55% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Procter & Gamble Co and its competitors. This is near median its historical median of 22.13. Over the past decade, Procter & Gamble Co's Operating Margin % has ranged from 19.99 to 24.26. According to the industry distribution chart, Procter & Gamble Co ranks #106 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 5.4%.
Is Procter & Gamble Co's Operating Margin % too high?
Procter & Gamble Co's current Operating Margin % of 21.55% is near median its 10-year median of 22.13. Over the past 10 years, this metric has ranged from a low of 19.99 to a high of 24.26. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Procter & Gamble Co's value of 21.55% is 309.7% above this industry median. Based on the distribution chart, Procter & Gamble Co ranks #106 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Procter & Gamble Co has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Procter & Gamble Co's Operating Margin % compare to CL and KVUE?
According to the Consumer Packaged Goods industry distribution chart, Procter & Gamble Co ranks #106 out of 1951 companies for Operating Margin %. This places Procter & Gamble Co in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. Procter & Gamble Co's value of 21.55% is 309.7% above this benchmark. Historically, Procter & Gamble Co's own Operating Margin % has ranged from 19.99 to 24.26 over the past decade. While the company's 10-year median is 22.13 vs. the industry median of 5.26, Procter & Gamble Co 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 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. Procter & Gamble Co's current Operating Margin % of 21.55% is 309.7% 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 Procter & Gamble Co and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Procter & Gamble Co's current Operating Margin % is 21.55%, which is near median its own 10-year median of 22.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Procter & Gamble Co stock overvalued right now?
Based on GuruFocus' analysis, Procter & Gamble Co (HAM:PRG) is currently considered Fairly Valued. The stock's GF Value™ is €147.36, compared to a current price of €134.52 — trading 8.7% below its estimated fair value. The current Operating Margin % is 21.55%, which is near median its 10-year median of 22.13 and 309.7% above the Consumer Packaged Goods industry median of 5.26. Procter & Gamble Co's overall GF Score™ is 81/100. 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 Procter & Gamble Co (HAM:PRG), the current Operating Margin % is 21.55% 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 Procter & Gamble Co (HAM:PRG) Overvalued in 2026?
Based on GuruFocus' analysis, Procter & Gamble Co stock appears to be undervalued.
The current stock price of €134.52 is trading 8.7% below its estimated GF Value™ of €147.36.
GuruFocus considers Procter & Gamble Co to be Fairly Valued.
Key valuation signals for HAM:PRG:
Operating Margin %: 21.55% (near median its 10-year median of 22.13)
GF Value™: €147.36 vs. price of €134.52 (8.7% below fair value)
Industry Position: 309.7% above the Consumer Packaged Goods median (#106 of 1951)
No single metric tells the full story. See the HAM:PRG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Since its founding in 1837, Procter & Gamble has become one of the world's largest consumer product manufacturers, with annual sales of nearly $85 billion. It operates with a lineup of leading brands, including more than 20 that generate annual global sales of more than $1 billion each, such as Tide laundry detergent, Charmin toilet paper, Pantene shampoo, and Pampers diapers. Sales outside its home turf represent just more than half of the firm's consolidated total.
81GF Score
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