Nestle PakistanKAR:NESTLE +0.44%79 Operating Margin % is 18.47% as of Mar. 2026, which is 19% above its 10-year median of 15.46. GuruFocus rates KAR:NESTLE with a GF Score™ of 79/100 and a GF Value™ of ₨7,859.37 (Fairly Valued). The stock has 1 warning sign investors should review. Among 1,951 Consumer Packaged Goods companies, Nestle Pakistan ranks better than 85.85% on this metric.
Nestle Pakistan Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Nestle Pakistan's Operating Margin % or its related term are showing as below:
KAR:NESTLE'
s Operating Margin % Range Over the Past 10 Years
Min: 12.4 Med: 15.46 Max: 18.24
Current: 15.18
KAR:NESTLE's Operating Margin % is ranked better than 85.85% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs KAR:NESTLE: 15.18
Nestle Pakistan's 5-Year Average Operating Margin % Growth Rate was 2.00% per year.
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.
Nestle Pakistan Operating Margin % Related Terms
Nestle Pakistan Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nestle Pakistan'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.
KAR:NESTLE vs KHC, GIS: Operating Margin % Comparison
For the Packaged Foods subindustry, Nestle Pakistan'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.
Nestle Pakistan Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Pakistan's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nestle Pakistan'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.
Nestle Pakistan'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.
Nestle Pakistan (KAR:NESTLE) has a Operating Margin % of 18.47% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nestle Pakistan and its competitors. This is 19% above median its historical median of 15.46. Over the past decade, Nestle Pakistan's Operating Margin % has ranged from 12.40 to 18.24. According to the industry distribution chart, Nestle Pakistan ranks #276 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 14.1%.
Is Nestle Pakistan's Operating Margin % too high?
Nestle Pakistan's current Operating Margin % of 18.47% is 19% above median its 10-year median of 15.46. Over the past 10 years, this metric has ranged from a low of 12.40 to a high of 18.24. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Nestle Pakistan's value of 18.47% is 251.1% above this industry median. Based on the distribution chart, Nestle Pakistan ranks #276 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle Pakistan has a GF Score™ of 79/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Nestle Pakistan's Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Pakistan ranks #276 out of 1951 companies for Operating Margin %. This places Nestle Pakistan in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. Nestle Pakistan's value of 18.47% is 251.1% above this benchmark. Historically, Nestle Pakistan's own Operating Margin % has ranged from 12.40 to 18.24 over the past decade. While the company's 10-year median is 15.46 vs. the industry median of 5.26, Nestle Pakistan 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. Nestle Pakistan's current Operating Margin % of 18.47% is 251.1% 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 Nestle Pakistan 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. Nestle Pakistan's current Operating Margin % is 18.47%, which is 19% above median its own 10-year median of 15.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Nestle Pakistan (KAR:NESTLE) is currently considered Fairly Valued. The stock's GF Value™ is ₨7,859.37, compared to a current price of ₨7,649.62 — trading 2.7% below its estimated fair value. The current Operating Margin % is 18.47%, which is 19% above median its 10-year median of 15.46 and 251.1% above the Consumer Packaged Goods industry median of 5.26. Nestle Pakistan's overall GF Score™ is 79/100 with 1 warning sign 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 Nestle Pakistan (KAR:NESTLE), the current Operating Margin % is 18.47% 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 Nestle Pakistan (KAR:NESTLE) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Pakistan stock appears to be undervalued.
The current stock price of ₨7,649.62 is trading 2.7% below its estimated GF Value™ of ₨7,859.37.
GuruFocus considers Nestle Pakistan to be Fairly Valued.
Key valuation signals for KAR:NESTLE:
Operating Margin %: 18.47% (19% above median its 10-year median of 15.46)
GF Value™: ₨7,859.37 vs. price of ₨7,649.62 (2.7% below fair value)
Industry Position: 251.1% above the Consumer Packaged Goods median (#276 of 1951)
No single metric tells the full story. See the KAR:NESTLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Pakistan Ltd is principally engaged in manufacturing, processing, and selling dairy, nutrition, beverages, and food products, including imported products. The company's product line consists of dairy, coffee, water, juices, nectars, & fruit drinks, infant nutrition, breakfast cereals, and Nestle professionals. Its segments include Dairy and Nutrition Products, which include milk-based products; Powdered and Liquid Beverages include juices, drinking water, and powdered drinks; Other Products include confectionery, cereals, and other products. It derives the majority of its revenue from the Dairy and Nutrition Products segments.
79GF Score
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