Molina HealthcareMOH +7.26%80 Operating Margin % is 1.63% as of Mar. 2026, which is 62% below its 10-year median of 4.26. GuruFocus rates MOH with a GF Score™ of 80/100 and a GF Value™ of $405.30 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 15 Healthcare Plans companies, Molina Healthcare ranks worse than 66.67% 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.
Molina Healthcare Operating Margin % Related Terms
Molina Healthcare Operating Margin % Historical Data
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The historical data trend for Molina Healthcare'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.
MOH vs OSCR, ALHC, CLOV: Operating Margin % Comparison
For the Healthcare Plans subindustry, Molina Healthcare'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.
Molina Healthcare Operating Margin % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Molina Healthcare's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Molina Healthcare'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.
Molina Healthcare'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.
Molina Healthcare (MOH) has a Operating Margin % of 1.63% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Molina Healthcare and its competitors. This is 62% below median its historical median of 4.26. Over the past decade, Molina Healthcare's Operating Margin % has ranged from 0.75 to 6.20. According to the industry distribution chart, Molina Healthcare ranks #10 out of 15 companies in the Healthcare Plans industry, placing it in the top 66.7%.
Is Molina Healthcare's Operating Margin % too high?
Molina Healthcare's current Operating Margin % of 1.63% is 62% below median its 10-year median of 4.26. Over the past 10 years, this metric has ranged from a low of 0.75 to a high of 6.20. The Healthcare Plans industry median Operating Margin % is 3.10. Molina Healthcare's value of 1.63% is 47.4% below this industry median. Based on the distribution chart, Molina Healthcare ranks #10 out of 15 companies in the Healthcare Plans industry, which is below the industry midpoint. Overall, Molina Healthcare has a GF Score™ of 80/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Molina Healthcare's Operating Margin % compare to OSCR and ALHC?
According to the Healthcare Plans industry distribution chart, Molina Healthcare ranks #10 out of 15 companies for Operating Margin %. This places Molina Healthcare in the lower half of its industry. The industry median Operating Margin % is 3.10. Molina Healthcare's value of 1.63% is 47.4% below this benchmark. Historically, Molina Healthcare's own Operating Margin % has ranged from 0.75 to 6.20 over the past decade. While the company's 10-year median is 4.26 vs. the industry median of 3.10, Molina Healthcare 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 Healthcare Plans company?
The median Operating Margin % among Healthcare Plans companies is 3.10, based on 15 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. Molina Healthcare's current Operating Margin % of 1.63% is 47.4% 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 Molina Healthcare and its competitors. For the Healthcare Plans industry, the median Operating Margin % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Molina Healthcare's current Operating Margin % is 1.63%, which is 62% below median its own 10-year median of 4.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Molina Healthcare stock overvalued right now?
Based on GuruFocus' analysis, Molina Healthcare (MOH) is currently considered Significantly Undervalued. The stock's GF Value™ is $405.30, compared to a current price of $216.04 — trading 46.7% below its estimated fair value. The current Operating Margin % is 1.63%, which is 62% below median its 10-year median of 4.26 and 47.4% below the Healthcare Plans industry median of 3.10. Molina Healthcare's overall GF Score™ is 80/100 with 6 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 Molina Healthcare (MOH), the current Operating Margin % is 1.63% 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 Molina Healthcare (MOH) Overvalued in 2026?
Based on GuruFocus' analysis, Molina Healthcare stock appears to be undervalued.
The current stock price of $216.04 is trading 46.7% below its estimated GF Value™ of $405.30.
GuruFocus considers Molina Healthcare to be Significantly Undervalued.
Key valuation signals for MOH:
Operating Margin %: 1.63% (62% below median its 10-year median of 4.26)
GF Value™: $405.30 vs. price of $216.04 (46.7% below fair value)
Industry Position: 47.4% below the Healthcare Plans median (#10 of 15)
No single metric tells the full story. See the MOH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Molina Healthcare Inc provides medical insurance plans through Medicaid, the individual exchanges, and Medicare. The company operates in four reportable segments consisting of: 1) Medicaid; 2) Medicare; 3) Marketplace; and 4) Other. It manages health benefit risks for more than 5 million people, with more than 85% of those members coming through contracts with state governments for their Medicaid programs. Medicaid contracts in four states-California, New York, Texas, and Washington-account for over half of its enrollees.
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