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.
Agro Industrial Paramonga Operating Margin % Related Terms
Agro Industrial Paramonga 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.
LIM:PARAMOC1 vs SHMP: Operating Margin % Comparison
For the Farm Products subindustry, Agro Industrial Paramonga'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.
Agro Industrial Paramonga Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Agro Industrial Paramonga's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Agro Industrial Paramonga'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.
Agro Industrial Paramonga'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.
Agro Industrial Paramonga (LIM:PARAMOC1) has a Operating Margin % of 13.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Agro Industrial Paramonga and its competitors. This is 35% below median its historical median of 21.13. Over the past decade, Agro Industrial Paramonga's Operating Margin % has ranged from 6.95 to 338.59.
Is Agro Industrial Paramonga's Operating Margin % too high?
Agro Industrial Paramonga's current Operating Margin % of 13.80% is 35% below median its 10-year median of 21.13. Over the past 10 years, this metric has ranged from a low of 6.95 to a high of 338.59. The Consumer Packaged Goods industry median Operating Margin % is 5.30. Agro Industrial Paramonga's value of 13.80% is 160.4% above this industry median. Overall, Agro Industrial Paramonga has a GF Score™ of 9/100, reflecting its overall financial health beyond just this single metric.
How does Agro Industrial Paramonga's Operating Margin % compare to SHMP?
Agro Industrial Paramonga's Operating Margin % of 13.80% can be compared against companies in the Consumer Packaged Goods industry. The industry median Operating Margin % is 5.30. Agro Industrial Paramonga's value of 13.80% is 160.4% above this benchmark. Historically, Agro Industrial Paramonga's own Operating Margin % has ranged from 6.95 to 338.59 over the past decade. While the company's 10-year median is 21.13 vs. the industry median of 5.30, Agro Industrial Paramonga 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 5.30, based on 1,953 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. Agro Industrial Paramonga's current Operating Margin % of 13.80% is 160.4% 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 Agro Industrial Paramonga and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Agro Industrial Paramonga's current Operating Margin % is 13.80%, which is 35% below median its own 10-year median of 21.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Agro Industrial Paramonga stock overvalued right now?
Agro Industrial Paramonga (LIM:PARAMOC1) has a current Operating Margin % of 13.80%. The stock's GF Value™ is S/.7.20, compared to a current price of S/.12.00 — trading 66.7% above its estimated fair value. The current Operating Margin % is 13.80%, which is 35% below median its 10-year median of 21.13 and 160.4% above the Consumer Packaged Goods industry median of 5.30. Agro Industrial Paramonga's overall GF Score™ is 9/100 with 9 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 Agro Industrial Paramonga (LIM:PARAMOC1), the current Operating Margin % is 13.80% 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 Agro Industrial Paramonga (LIM:PARAMOC1) Overvalued in 2026?
Based on GuruFocus' analysis, Agro Industrial Paramonga stock appears to be overvalued.
The current stock price of S/.12.00 is trading 66.7% above its estimated GF Value™ of S/.7.20.
Key valuation signals for LIM:PARAMOC1:
Operating Margin %: 13.80% (35% below median its 10-year median of 21.13)
GF Value™: S/.7.20 vs. price of S/.12.00 (66.7% above fair value)
Industry Position: 160.4% above the Consumer Packaged Goods median
No single metric tells the full story. See the LIM:PARAMOC1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Agro Industrial Paramonga SAA is engaged in the production of cane sugar and other related businesses. The company's products include Sugar, Rectified Ethyl Alcohol, Industrial Alcohol, Molasses, and Bagasse.
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