Recordati SpAMIL:REC +0.88%96 Operating Margin % is 32.47% as of Mar. 2026, which is 6% above its 10-year median of 30.57. GuruFocus rates MIL:REC with a GF Score™ of 96/100 and a GF Value™ of €60.63 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 955 Drug Manufacturers companies, Recordati SpA ranks better than 92.98% on this metric.
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.
Recordati SpA Operating Margin % Related Terms
Recordati SpA Operating Margin % Historical Data
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The historical data trend for Recordati SpA'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.
MIL:REC vs LLY, JNJ, ABBV: Operating Margin % Comparison
For the Drug Manufacturers - General subindustry, Recordati SpA'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.
Recordati SpA Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Recordati SpA's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Recordati SpA'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.
Recordati SpA'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.
Recordati SpA (MIL:REC) has a Operating Margin % of 32.47% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Recordati SpA and its competitors. This is near median its historical median of 30.57. Over the past decade, Recordati SpA's Operating Margin % has ranged from 26.66 to 32.94. According to the industry distribution chart, Recordati SpA ranks #67 out of 955 companies in the Drug Manufacturers industry, placing it in the top 7%.
Is Recordati SpA's Operating Margin % too high?
Recordati SpA's current Operating Margin % of 32.47% is near median its 10-year median of 30.57. Over the past 10 years, this metric has ranged from a low of 26.66 to a high of 32.94. The Drug Manufacturers industry median Operating Margin % is 7.45. Recordati SpA's value of 32.47% is 335.8% above this industry median. Based on the distribution chart, Recordati SpA ranks #67 out of 955 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Recordati SpA has a GF Score™ of 96/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Recordati SpA's Operating Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Recordati SpA ranks #67 out of 955 companies for Operating Margin %. This places Recordati SpA in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.45. Recordati SpA's value of 32.47% is 335.8% above this benchmark. Historically, Recordati SpA's own Operating Margin % has ranged from 26.66 to 32.94 over the past decade. While the company's 10-year median is 30.57 vs. the industry median of 7.45, Recordati SpA 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Recordati SpA's current Operating Margin % of 32.47% is 335.8% 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 Recordati SpA and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Recordati SpA's current Operating Margin % is 32.47%, which is near median its own 10-year median of 30.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recordati SpA stock overvalued right now?
Based on GuruFocus' analysis, Recordati SpA (MIL:REC) is currently considered Modestly Undervalued. The stock's GF Value™ is €60.63, compared to a current price of €51.55 — trading 15% below its estimated fair value. The current Operating Margin % is 32.47%, which is near median its 10-year median of 30.57 and 335.8% above the Drug Manufacturers industry median of 7.45. Recordati SpA's overall GF Score™ is 96/100 with 3 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 Recordati SpA (MIL:REC), the current Operating Margin % is 32.47% 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 Recordati SpA (MIL:REC) Overvalued in 2026?
Based on GuruFocus' analysis, Recordati SpA stock appears to be undervalued.
The current stock price of €51.55 is trading 15% below its estimated GF Value™ of €60.63.
GuruFocus considers Recordati SpA to be Modestly Undervalued.
Key valuation signals for MIL:REC:
Operating Margin %: 32.47% (near median its 10-year median of 30.57)
GF Value™: €60.63 vs. price of €51.55 (15% below fair value)
Industry Position: 335.8% above the Drug Manufacturers median (#67 of 955)
No single metric tells the full story. See the MIL:REC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Recordati SpA is engaged in the development, production, and marketing of pharmaceutical products or of pharmaceutical chemicals. The Company operates in a broad and diverse context, which includes general medicine, specialist medicine, self-medication, and rare diseases. In addition, it is also active in the field of urology, with treatments for benign prostatic hyperplasia and male functional disorders, and in psychiatry. The Company's only operating segment is the Specialty & Primary Care segment. Its geographic areas are Europe, Australasia, America, and Africa.
96GF Score
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