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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.
Ultragenyx Pharmaceutical Operating Margin % Related Terms
Ultragenyx Pharmaceutical 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.
MEX:RARE vs VERA, IRON, QURE: Operating Margin % Comparison
For the Biotechnology subindustry, Ultragenyx Pharmaceutical'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.
Ultragenyx Pharmaceutical Operating Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Ultragenyx Pharmaceutical's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ultragenyx Pharmaceutical'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.
Ultragenyx Pharmaceutical'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.
Ultragenyx Pharmaceutical (MEX:RARE) has a Operating Margin % of -124.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ultragenyx Pharmaceutical and its competitors. According to the industry distribution chart, Ultragenyx Pharmaceutical ranks #465 out of 939 companies in the Biotechnology industry, placing it in the top 49.5%.
Is Ultragenyx Pharmaceutical's Operating Margin % too high?
Ultragenyx Pharmaceutical's current Operating Margin % is -124.26%. Based on the distribution chart, Ultragenyx Pharmaceutical ranks #465 out of 939 companies in the Biotechnology industry, which is above the industry midpoint. Overall, Ultragenyx Pharmaceutical has a GF Score™ of 66/100, reflecting its overall financial health beyond just this single metric.
How does Ultragenyx Pharmaceutical's Operating Margin % compare to VERA and IRON?
According to the Biotechnology industry distribution chart, Ultragenyx Pharmaceutical ranks #465 out of 939 companies for Operating Margin %. This puts Ultragenyx Pharmaceutical in the upper half of its industry. 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 Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Ultragenyx Pharmaceutical and its competitors. Ultragenyx Pharmaceutical's current Operating Margin % is -124.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ultragenyx Pharmaceutical stock overvalued right now?
Ultragenyx Pharmaceutical (MEX:RARE) has a current Operating Margin % of -124.26%. The stock's GF Value™ is MXN1,699.44, compared to a current price of MXN1,150.56 — trading 32.3% below its estimated fair value. The current Operating Margin % is -124.26%. Ultragenyx Pharmaceutical's overall GF Score™ is 66/100 with 5 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 Ultragenyx Pharmaceutical (MEX:RARE), the current Operating Margin % is -124.26% 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 Ultragenyx Pharmaceutical (MEX:RARE) Overvalued in 2026?
Based on GuruFocus' analysis, Ultragenyx Pharmaceutical stock appears to be undervalued.
The current stock price of MXN1,150.56 is trading 32.3% below its estimated GF Value™ of MXN1,699.44.
Key valuation signals for MEX:RARE:
Operating Margin %: -124.26%
GF Value™: MXN1,699.44 vs. price of MXN1,150.56 (32.3% below fair value)
No single metric tells the full story. See the MEX:RARE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ultragenyx Pharmaceutical Inc is a USA-based biopharmaceutical company. The company identifies, acquires, develops, and commercializes novel products for the treatment of serious, rare, and ultra-rare diseases, with a focus on debilitating genetic conditions. Its medicine portfolio includes Crysvita, Dojolvi, and Mepsevii. Crysvita is indicated for the treatment of X-linked hypophosphatemia (XLH) in adult and pediatric patients aged one year and older. Mepsevii is indicated for pediatric and adult patients for the treatment of Mucopolysaccharidosis VII. The company operates across North America, Latin America, Europe, the Middle East and Africa, and Asia-Pacific, with the majority of its revenue generated from North America.
66GF Score
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