CencoraLTS:0HF3 +2.41%82 Operating Margin % is 1.74% as of Mar. 2026, which is 53% above its 10-year median of 1.14. GuruFocus rates LTS:0HF3 with a GF Score™ of 82/100 and a GF Value™ of $294.88 (Fairly Valued). The stock has 1 warning sign investors should review. Among 119 Medical Distribution companies, Cencora ranks worse than 69.75% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Cencora's Operating Income for the
three
months ended in Mar. 2026 was $1,361 Mil. Cencora's Revenue for the
three
months ended in Mar. 2026 was $78,356 Mil. Therefore, Cencora's Operating Margin % for the quarter that ended in Mar. 2026 was 1.74%.
The historical rank and industry rank for Cencora's Operating Margin % or its related term are showing as below:
LTS:0HF3'
s Operating Margin % Range Over the Past 10 Years
Min: 1 Med: 1.14 Max: 1.33
Current: 1.31
LTS:0HF3's Operating Margin % is ranked worse than 69.75% of 119
companies
in the Medical Distribution industry
Industry Median: 3.07
vs LTS:0HF3: 1.31
Cencora's 5-Year Average Operating Margin % Growth Rate was -0.30% per year.
Cencora's Operating Income for the
three
months ended in Mar. 2026 was $1,361 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $4,304 Mil.
Cencora (LTS:0HF3) 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.
Cencora Operating Margin % Related Terms
Cencora Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cencora'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.
LTS:0HF3 vs CAH, MCK, HSIC: Operating Margin % Comparison
For the Medical Distribution subindustry, Cencora'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.
Cencora Operating Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Cencora's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cencora'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.
Cencora'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.
Cencora (LTS:0HF3) has a Operating Margin % of 1.74% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cencora and its competitors. This is 53% above median its historical median of 1.14. Over the past decade, Cencora's Operating Margin % has ranged from 1.00 to 1.33. According to the industry distribution chart, Cencora ranks #83 out of 119 companies in the Medical Distribution industry, placing it in the top 69.7%.
Is Cencora's Operating Margin % too high?
Cencora's current Operating Margin % of 1.74% is 53% above median its 10-year median of 1.14. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 1.33. The Medical Distribution industry median Operating Margin % is 3.07. Cencora's value of 1.74% is 43.3% below this industry median. Based on the distribution chart, Cencora ranks #83 out of 119 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Cencora has a GF Score™ of 82/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Cencora's Operating Margin % compare to CAH and MCK?
According to the Medical Distribution industry distribution chart, Cencora ranks #83 out of 119 companies for Operating Margin %. This places Cencora in the lower half of its industry. The industry median Operating Margin % is 3.07. Cencora's value of 1.74% is 43.3% below this benchmark. Historically, Cencora's own Operating Margin % has ranged from 1.00 to 1.33 over the past decade. While the company's 10-year median is 1.14 vs. the industry median of 3.07, Cencora 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 Medical Distribution company?
The median Operating Margin % among Medical Distribution companies is 3.07, based on 119 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. Cencora's current Operating Margin % of 1.74% is 43.3% 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 Cencora and its competitors. For the Medical Distribution industry, the median Operating Margin % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cencora's current Operating Margin % is 1.74%, which is 53% above median its own 10-year median of 1.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cencora stock overvalued right now?
Based on GuruFocus' analysis, Cencora (LTS:0HF3) is currently considered Fairly Valued. The stock's GF Value™ is $294.88, compared to a current price of $287.35 — trading 2.6% below its estimated fair value. The current Operating Margin % is 1.74%, which is 53% above median its 10-year median of 1.14 and 43.3% below the Medical Distribution industry median of 3.07. Cencora's overall GF Score™ is 82/100 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 Cencora (LTS:0HF3), the current Operating Margin % is 1.74% 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 Cencora (LTS:0HF3) Overvalued in 2026?
Based on GuruFocus' analysis, Cencora stock appears to be undervalued.
The current stock price of $287.35 is trading 2.6% below its estimated GF Value™ of $294.88.
GuruFocus considers Cencora to be Fairly Valued.
Key valuation signals for LTS:0HF3:
Operating Margin %: 1.74% (53% above median its 10-year median of 1.14)
GF Value™: $294.88 vs. price of $287.35 (2.6% below fair value)
Industry Position: 43.3% below the Medical Distribution median (#83 of 119)
No single metric tells the full story. See the LTS:0HF3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cencora is one of three leading domestic pharmaceutical wholesalers. It sources and distributes branded, generic, and specialty pharmaceutical products to pharmacies (retail chains, independent, and mail order), hospital networks, and healthcare providers. It and McKesson and Cardinal Health hold over 90% share of the US pharmaceutical wholesale industry. Cencora also provides commercialization services for manufacturers of pharmaceuticals and medical devices, global specialty drug logistics (World Courier), and animal health product distribution (MWI Animal Health). Cencora expanded its international presence in 2021 by purchasing Alliance Healthcare, one of the leading drug wholesalers in Europe.
82GF Score
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