Associated British FoodsLSE:ABF +0.21%83 Operating Margin % is 6.64% as of Feb. 2026, which is 16% below its 10-year median of 7.91. GuruFocus rates LSE:ABF with a GF Score™ of 83/100 and a GF Value™ of £22.57 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Associated British Foods ranks better than 61.15% on this metric.
Associated British Foods PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Associated British Foods's Operating Margin % or its related term are showing as below:
LSE:ABF'
s Operating Margin % Range Over the Past 10 Years
Min: 6.31 Med: 7.91 Max: 9.14
Current: 7.42
LSE:ABF's Operating Margin % is ranked better than 61.15% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs LSE:ABF: 7.42
Associated British Foods (LSE:ABF) 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.
Associated British Foods Operating Margin % Related Terms
Associated British Foods 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.
LSE:ABF vs KHC, GIS: Operating Margin % Comparison
For the Packaged Foods subindustry, Associated British 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.
Associated British Foods Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Associated British Foods's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Associated British Foods's Operating Margin % falls into.
Associated British Foods 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.
Associated British Foods's Operating Margin % for the fiscal year that ended in Aug. 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.
Associated British Foods (LSE:ABF) has a Operating Margin % of 6.64% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Associated British Foods and its competitors. This is 16% below median its historical median of 7.91. Over the past decade, Associated British Foods' Operating Margin % has ranged from 6.31 to 9.14. According to the industry distribution chart, Associated British Foods ranks #758 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 38.9%.
Is Associated British Foods' Operating Margin % too high?
Associated British Foods' current Operating Margin % of 6.64% is 16% below median its 10-year median of 7.91. Over the past 10 years, this metric has ranged from a low of 6.31 to a high of 9.14. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Associated British Foods' value of 6.64% is 26.2% above this industry median. Based on the distribution chart, Associated British Foods ranks #758 out of 1951 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Associated British Foods has a GF Score™ of 83/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Associated British Foods' Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Associated British Foods ranks #758 out of 1951 companies for Operating Margin %. This puts Associated British Foods in the upper half of its industry. The industry median Operating Margin % is 5.26. Associated British Foods' value of 6.64% is 26.2% above this benchmark. Historically, Associated British Foods' own Operating Margin % has ranged from 6.31 to 9.14 over the past decade. While the company's 10-year median is 7.91 vs. the industry median of 5.26, Associated British Foods 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. Associated British Foods's current Operating Margin % of 6.64% is 26.2% 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 Associated British 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. Associated British Foods's current Operating Margin % is 6.64%, which is 16% below median its own 10-year median of 7.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Associated British Foods stock overvalued right now?
Based on GuruFocus' analysis, Associated British Foods (LSE:ABF) is currently considered Modestly Undervalued. The stock's GF Value™ is £22.57, compared to a current price of £18.85 — trading 16.5% below its estimated fair value. The current Operating Margin % is 6.64%, which is 16% below median its 10-year median of 7.91 and 26.2% above the Consumer Packaged Goods industry median of 5.26. Associated British Foods' overall GF Score™ is 83/100 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 Associated British Foods (LSE:ABF), the current Operating Margin % is 6.64% as of Feb. 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 Associated British Foods (LSE:ABF) Overvalued in 2026?
Based on GuruFocus' analysis, Associated British Foods stock appears to be undervalued.
The current stock price of £18.85 is trading 16.5% below its estimated GF Value™ of £22.57.
GuruFocus considers Associated British Foods to be Modestly Undervalued.
Key valuation signals for LSE:ABF:
Operating Margin %: 6.64% (16% below median its 10-year median of 7.91)
GF Value™: £22.57 vs. price of £18.85 (16.5% below fair value)
Industry Position: 26.2% above the Consumer Packaged Goods median (#758 of 1951)
No single metric tells the full story. See the LSE:ABF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Associated British Foods is a diversified international food, ingredients, and retail group with 138,000 employees and operations in 56 countries across Europe, Africa, the Americas, Asia, and Australia. The group sells branded groceries, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the multinational Primark clothing retail chain. It also supplies ingredients like bakers' yeast, enzymes, lipids, and cereal specialties. In fiscal 2025, approximately 36% of sales came from the UK, and Primark accounted for around 60% of operating profit.On April 21, 2026, ABF announced it plans to separate Primark and the food businesses. Subject to approvals, the demerger is expected to become effective at the end of 2027.
83GF Score
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