PT Indonesia Fibreboard Industry Tbk (ISX:IFII) 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.
PT Indonesia Fibreboard Industry Tbk Operating Margin % Related Terms
PT Indonesia Fibreboard Industry Tbk Operating Margin % Historical Data
* 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.
PT Indonesia Fibreboard Industry Tbk Operating Margin % Chart
ISX:IFII vs SSD, UFPI, BCC: Operating Margin % Comparison
For the Lumber & Wood Production subindustry, PT Indonesia Fibreboard Industry Tbk'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.
PT Indonesia Fibreboard Industry Tbk Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, PT Indonesia Fibreboard Industry Tbk's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PT Indonesia Fibreboard Industry Tbk's Operating Margin % falls into.
PT Indonesia Fibreboard Industry Tbk 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.
* 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.
PT Indonesia Fibreboard Industry Tbk (ISX:IFII) has a Operating Margin % of 18.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PT Indonesia Fibreboard Industry Tbk and its competitors. This is 23% above median its historical median of 14.90. Over the past decade, PT Indonesia Fibreboard Industry Tbk's Operating Margin % has ranged from 5.00 to 20.74. According to the industry distribution chart, PT Indonesia Fibreboard Industry Tbk ranks #18 out of 283 companies in the Forest Products industry, placing it in the top 6.4%.
Is PT Indonesia Fibreboard Industry Tbk's Operating Margin % too high?
PT Indonesia Fibreboard Industry Tbk's current Operating Margin % of 18.37% is 23% above median its 10-year median of 14.90. Over the past 10 years, this metric has ranged from a low of 5.00 to a high of 20.74. The Forest Products industry median Operating Margin % is 2.60. PT Indonesia Fibreboard Industry Tbk's value of 18.37% is 606.5% above this industry median. Based on the distribution chart, PT Indonesia Fibreboard Industry Tbk ranks #18 out of 283 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, PT Indonesia Fibreboard Industry Tbk has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does PT Indonesia Fibreboard Industry Tbk's Operating Margin % compare to SSD and UFPI?
According to the Forest Products industry distribution chart, PT Indonesia Fibreboard Industry Tbk ranks #18 out of 283 companies for Operating Margin %. This places PT Indonesia Fibreboard Industry Tbk in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.60. PT Indonesia Fibreboard Industry Tbk's value of 18.37% is 606.5% above this benchmark. Historically, PT Indonesia Fibreboard Industry Tbk's own Operating Margin % has ranged from 5.00 to 20.74 over the past decade. While the company's 10-year median is 14.90 vs. the industry median of 2.60, PT Indonesia Fibreboard Industry Tbk 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.60, based on 283 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. PT Indonesia Fibreboard Industry Tbk's current Operating Margin % of 18.37% is 606.5% 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 PT Indonesia Fibreboard Industry Tbk and its competitors. For the Forest Products industry, the median Operating Margin % is 2.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Indonesia Fibreboard Industry Tbk's current Operating Margin % is 18.37%, which is 23% above median its own 10-year median of 14.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Indonesia Fibreboard Industry Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Indonesia Fibreboard Industry Tbk (ISX:IFII) is currently considered Fairly Valued. The stock's GF Value™ is Rp211.08, compared to a current price of Rp214.00 — trading 1.4% above its estimated fair value. The current Operating Margin % is 18.37%, which is 23% above median its 10-year median of 14.90 and 606.5% above the Forest Products industry median of 2.60. PT Indonesia Fibreboard Industry Tbk's overall GF Score™ is 89/100 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 PT Indonesia Fibreboard Industry Tbk (ISX:IFII), the current Operating Margin % is 18.37% 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 PT Indonesia Fibreboard Industry Tbk (ISX:IFII) Overvalued in 2026?
Based on GuruFocus' analysis, PT Indonesia Fibreboard Industry Tbk stock appears to be overvalued.
The current stock price of Rp214.00 is trading 1.4% above its estimated GF Value™ of Rp211.08.
GuruFocus considers PT Indonesia Fibreboard Industry Tbk to be Fairly Valued.
Key valuation signals for ISX:IFII:
Operating Margin %: 18.37% (23% above median its 10-year median of 14.90)
GF Value™: Rp211.08 vs. price of Rp214.00 (1.4% above fair value)
Industry Position: 606.5% above the Forest Products median (#18 of 283)
No single metric tells the full story. See the ISX:IFII stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Indonesia Fibreboard Industry Tbk Business Description
PT Indonesia Fibreboard Industry Tbk is a wood processing company developing a variety of processed wood such as veneer and plywood. Its product portfolio includes High-Density Fireboard, Medium Density Fireboard, Low-Density Fireboard, High Moisture Resistance, Plywood, Plywood MDF, MDF Laminate Paper, and Veneer. Its segments include Japan MDF, Regular MDF, Middle East MDF, and Others. A vast majority of its revenues are derived from Middle East MDF segment.
89GF Score
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