Dangote CementNSA:DCP 100 Operating Margin % is 41.94% as of Mar. 2026, which is 15% above its 10-year median of 36.61. GuruFocus rates NSA:DCP with a GF Score™ of 100/100 and a GF Value™ of ₦806.03 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 405 Building Materials companies, Dangote Cement ranks better than 98.02% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Dangote Cement's Operating Income for the
three
months ended in Mar. 2026 was ₦502,406 Mil. Dangote Cement's Revenue for the
three
months ended in Mar. 2026 was ₦1,198,032 Mil. Therefore, Dangote Cement's Operating Margin % for the quarter that ended in Mar. 2026 was 41.94%.
Warning Sign:
Dangote Cement PLC operating margin has been in a 5-year decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for Dangote Cement's Operating Margin % or its related term are showing as below:
NSA:DCP'
s Operating Margin % Range Over the Past 10 Years
Min: 28 Med: 36.61 Max: 42.03
Current: 41.39
NSA:DCP's Operating Margin % is ranked better than 98.02% of 405
companies
in the Building Materials industry
Industry Median: 7.64
vs NSA:DCP: 41.39
Dangote Cement's 5-Year Average Operating Margin % Growth Rate was -1.60% per year.
Dangote Cement's Operating Income for the
three
months ended in Mar. 2026 was ₦502,406 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₦1,866,885 Mil.
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.
Dangote Cement Operating Margin % Related Terms
Dangote Cement Operating Margin % Historical Data
* Premium members only.
The historical data trend for Dangote Cement'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.
NSA:DCP vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Dangote Cement'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.
Dangote Cement Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Dangote Cement's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Dangote Cement'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.
Dangote Cement'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.
Dangote Cement (NSA:DCP) has a Operating Margin % of 41.94% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Dangote Cement and its competitors. This is 15% above median its historical median of 36.61. Over the past decade, Dangote Cement's Operating Margin % has ranged from 28.00 to 42.03. According to the industry distribution chart, Dangote Cement ranks #8 out of 405 companies in the Building Materials industry, placing it in the top 2%.
Is Dangote Cement's Operating Margin % too high?
Dangote Cement's current Operating Margin % of 41.94% is 15% above median its 10-year median of 36.61. Over the past 10 years, this metric has ranged from a low of 28.00 to a high of 42.03. The Building Materials industry median Operating Margin % is 7.64. Dangote Cement's value of 41.94% is 449% above this industry median. Based on the distribution chart, Dangote Cement ranks #8 out of 405 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Dangote Cement has a GF Score™ of 100/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Dangote Cement's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Dangote Cement ranks #8 out of 405 companies for Operating Margin %. This places Dangote Cement in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.64. Dangote Cement's value of 41.94% is 449% above this benchmark. Historically, Dangote Cement's own Operating Margin % has ranged from 28.00 to 42.03 over the past decade. While the company's 10-year median is 36.61 vs. the industry median of 7.64, Dangote Cement 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.64, based on 405 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. Dangote Cement's current Operating Margin % of 41.94% is 449% 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 Dangote Cement and its competitors. For the Building Materials industry, the median Operating Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Dangote Cement's current Operating Margin % is 41.94%, which is 15% above median its own 10-year median of 36.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Dangote Cement stock overvalued right now?
Based on GuruFocus' analysis, Dangote Cement (NSA:DCP) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦806.03, compared to a current price of ₦1,070.00 — trading 32.7% above its estimated fair value. The current Operating Margin % is 41.94%, which is 15% above median its 10-year median of 36.61 and 449% above the Building Materials industry median of 7.64. Dangote Cement's overall GF Score™ is 100/100 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 Dangote Cement (NSA:DCP), the current Operating Margin % is 41.94% 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 Dangote Cement (NSA:DCP) Overvalued in 2026?
Based on GuruFocus' analysis, Dangote Cement stock appears to be overvalued.
The current stock price of ₦1,070.00 is trading 32.7% above its estimated GF Value™ of ₦806.03.
GuruFocus considers Dangote Cement to be Significantly Overvalued.
Key valuation signals for NSA:DCP:
Operating Margin %: 41.94% (15% above median its 10-year median of 36.61)
GF Value™: ₦806.03 vs. price of ₦1,070.00 (32.7% above fair value)
Industry Position: 449% above the Building Materials median (#8 of 405)
No single metric tells the full story. See the NSA:DCP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Dangote Cement PLC is a cement manufacturer. It manufactures and markets cement and related products through its 'Dangote' brand. The principal activity of the Company and its subsidiaries is to operate plants for the preparation, manufacture and distribution of cement and related products. The Company's production activities are undertaken at Obajana town in Kogi State, Gboko in Benue State and Ibese in Ogun State; all in Nigeria. Its geographical segment includes Nigeria and Pan Africa. The company derives a majority of revenue from Nigeria segment.
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