Nestle NigeriaNSA:NESTLE 76 Operating Margin % is 23.18% as of Mar. 2026, which is 7% above its 10-year median of 21.73. GuruFocus rates NSA:NESTLE with a GF Score™ of 76/100 and a GF Value™ of ₦2,149.87 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,951 Consumer Packaged Goods companies, Nestle Nigeria ranks better than 90.36% on this metric.
Nestle Nigeria PLC operating margin has been in a 5-year decline. The average rate of decline per year is -3.3%.
The historical rank and industry rank for Nestle Nigeria's Operating Margin % or its related term are showing as below:
NSA:NESTLE'
s Operating Margin % Range Over the Past 10 Years
Min: 17.84 Med: 21.73 Max: 25.37
Current: 18.37
NSA:NESTLE's Operating Margin % is ranked better than 90.36% of 1951
companies
in the Consumer Packaged Goods industry
Industry Median: 5.26
vs NSA:NESTLE: 18.37
Nestle Nigeria's 5-Year Average Operating Margin % Growth Rate was -3.30% per year.
Nestle Nigeria's Operating Income for the
three
months ended in Mar. 2026 was ₦75,602 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ₦227,590 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.
Nestle Nigeria Operating Margin % Related Terms
Nestle Nigeria Operating Margin % Historical Data
* Premium members only.
The historical data trend for Nestle Nigeria'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:NESTLE vs KHC, GIS, JBS: Operating Margin % Comparison
For the Packaged Foods subindustry, Nestle Nigeria'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.
Nestle Nigeria Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Nestle Nigeria's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nestle Nigeria'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.
Nestle Nigeria'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.
Nestle Nigeria (NSA:NESTLE) has a Operating Margin % of 23.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nestle Nigeria and its competitors. This is near median its historical median of 21.73. Over the past decade, Nestle Nigeria's Operating Margin % has ranged from 17.84 to 25.37. According to the industry distribution chart, Nestle Nigeria ranks #188 out of 1951 companies in the Consumer Packaged Goods industry, placing it in the top 9.6%.
Is Nestle Nigeria's Operating Margin % too high?
Nestle Nigeria's current Operating Margin % of 23.18% is near median its 10-year median of 21.73. Over the past 10 years, this metric has ranged from a low of 17.84 to a high of 25.37. The Consumer Packaged Goods industry median Operating Margin % is 5.26. Nestle Nigeria's value of 23.18% is 340.7% above this industry median. Based on the distribution chart, Nestle Nigeria ranks #188 out of 1951 companies in the Consumer Packaged Goods industry, which is in the top quartile — a strong position relative to peers. Overall, Nestle Nigeria has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nestle Nigeria's Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Nestle Nigeria ranks #188 out of 1951 companies for Operating Margin %. This places Nestle Nigeria in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.26. Nestle Nigeria's value of 23.18% is 340.7% above this benchmark. Historically, Nestle Nigeria's own Operating Margin % has ranged from 17.84 to 25.37 over the past decade. While the company's 10-year median is 21.73 vs. the industry median of 5.26, Nestle Nigeria 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.26, based on 1,951 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. Nestle Nigeria's current Operating Margin % of 23.18% is 340.7% 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 Nestle Nigeria and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nestle Nigeria's current Operating Margin % is 23.18%, which is near median its own 10-year median of 21.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nestle Nigeria stock overvalued right now?
Based on GuruFocus' analysis, Nestle Nigeria (NSA:NESTLE) is currently considered Significantly Overvalued. The stock's GF Value™ is ₦2,149.87, compared to a current price of ₦3,125.00 — trading 45.4% above its estimated fair value. The current Operating Margin % is 23.18%, which is near median its 10-year median of 21.73 and 340.7% above the Consumer Packaged Goods industry median of 5.26. Nestle Nigeria's overall GF Score™ is 76/100 with 8 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 Nestle Nigeria (NSA:NESTLE), the current Operating Margin % is 23.18% 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 Nestle Nigeria (NSA:NESTLE) Overvalued in 2026?
Based on GuruFocus' analysis, Nestle Nigeria stock appears to be overvalued.
The current stock price of ₦3,125.00 is trading 45.4% above its estimated GF Value™ of ₦2,149.87.
GuruFocus considers Nestle Nigeria to be Significantly Overvalued.
Key valuation signals for NSA:NESTLE:
Operating Margin %: 23.18% (near median its 10-year median of 21.73)
GF Value™: ₦2,149.87 vs. price of ₦3,125.00 (45.4% above fair value)
Industry Position: 340.7% above the Consumer Packaged Goods median (#188 of 1951)
No single metric tells the full story. See the NSA:NESTLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nestle Nigeria PLC is a food and beverage company. It is involved in the business of manufacturing, marketing, and distribution of food products. The firm has categorized its products into Baby foods, Coffee, Culinary, Dairy, Drinks, and Recipes. It develops and markets its products under brands such as Cerelac, Nescafe, Nido, Maggi, Milo, etc. The company has Food and Beverage reportable segments. The Food segment engaged in the production and sale of Maggi, Cerelac, SMA, Nan, Lactogen, and Golden Morn. The Beverage segment consists of the production and sale of Milo, Chocomilo, Nido, Nescafe, Milo ready-to-drink, and Nestle Pure Life. The Food segment generates the majority of the revenue. Geographically, the majority of the revenue is generated from Nigeria.
76GF Score
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