J&J Snack FoodsJJSF +3.27%66 Operating Margin % is 1.90% as of Mar. 2026, which is 74% below its 10-year median of 7.30. GuruFocus rates JJSF with a GF Score™ of 66/100 and a GF Value™ of $143.66 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, J&J Snack Foods ranks better than 56.38% on this metric.
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.
J&J Snack Foods Operating Margin % Related Terms
J&J Snack Foods Operating Margin % Historical Data
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The historical data trend for J&J Snack 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.
JJSF vs NOMD, HLF, FLO: Operating Margin % Comparison
For the Packaged Foods subindustry, J&J Snack 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.
J&J Snack Foods Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, J&J Snack Foods's Operating Margin % distribution charts can be found below:
* The bar in red indicates where J&J Snack Foods'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.
J&J Snack Foods's Operating Margin % for the fiscal year that ended in Sep. 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.
J&J Snack Foods (JJSF) has a Operating Margin % of 1.90% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on J&J Snack Foods and its competitors. This is 74% below median its historical median of 7.30. Over the past decade, J&J Snack Foods' Operating Margin % has ranged from 2.31 to 11.36. According to the industry distribution chart, J&J Snack Foods ranks #851 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 43.6%.
Is J&J Snack Foods' Operating Margin % too high?
J&J Snack Foods' current Operating Margin % of 1.90% is 74% below median its 10-year median of 7.30. Over the past 10 years, this metric has ranged from a low of 2.31 to a high of 11.36. The Consumer Packaged Goods industry median Operating Margin % is 5.26. J&J Snack Foods' value of 1.90% is 63.9% below this industry median. Based on the distribution chart, J&J Snack Foods ranks #851 out of 1951 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, J&J Snack Foods has a GF Score™ of 66/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does J&J Snack Foods' Operating Margin % compare to NOMD and HLF?
According to the Consumer Packaged Goods industry distribution chart, J&J Snack Foods ranks #851 out of 1951 companies for Operating Margin %. This puts J&J Snack Foods in the upper half of its industry. The industry median Operating Margin % is 5.26. J&J Snack Foods' value of 1.90% is 63.9% below this benchmark. Historically, J&J Snack Foods' own Operating Margin % has ranged from 2.31 to 11.36 over the past decade. While the company's 10-year median is 7.30 vs. the industry median of 5.26, J&J Snack 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 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. J&J Snack Foods's current Operating Margin % of 1.90% is 63.9% 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 J&J Snack Foods 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. J&J Snack Foods's current Operating Margin % is 1.90%, which is 74% below median its own 10-year median of 7.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is J&J Snack Foods stock overvalued right now?
Based on GuruFocus' analysis, J&J Snack Foods (JJSF) is currently considered Significantly Undervalued. The stock's GF Value™ is $143.66, compared to a current price of $74.91 — trading 47.9% below its estimated fair value. The current Operating Margin % is 1.90%, which is 74% below median its 10-year median of 7.30 and 63.9% below the Consumer Packaged Goods industry median of 5.26. J&J Snack Foods' overall GF Score™ is 66/100 with 3 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 J&J Snack Foods (JJSF), the current Operating Margin % is 1.90% 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 J&J Snack Foods (JJSF) Overvalued in 2026?
Based on GuruFocus' analysis, J&J Snack Foods stock appears to be undervalued.
The current stock price of $74.91 is trading 47.9% below its estimated GF Value™ of $143.66.
GuruFocus considers J&J Snack Foods to be Significantly Undervalued.
Key valuation signals for JJSF:
Operating Margin %: 1.90% (74% below median its 10-year median of 7.30)
GF Value™: $143.66 vs. price of $74.91 (47.9% below fair value)
Industry Position: 63.9% below the Consumer Packaged Goods median (#851 of 1951)
No single metric tells the full story. See the JJSF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
J&J Snack Foods Corp. manufactures snack foods and distributes frozen beverages, which it markets nationally to the foodservice and retail supermarket industries. The company's portfolio of frozen beverages, frozen novelties, and baked goods includes soft pretzels, frozen juice treats and desserts, stuffed sandwiches, churros, funnel cakes, cookies, and other snack foods and drinks. It operates through three segments: Food Service, which sells snacks, desserts, and baked goods at the point of sale; Retail Supermarkets, which sells frozen and prepackaged products to supermarkets; and Frozen Beverages, which sells frozen beverages under the ICEE, Slush Puppie, and Parrot Ice brands in the United States, Mexico, and Canada. The majority of revenue comes from the Food Service segment.
66GF Score
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