ARC Insulation & InsulatorsNSE:ARCIIL -2.20%21 Operating Margin % is 11.68% as of Sep. 2025, which is 49% below its 10-year median of 23.04. GuruFocus rates NSE:ARCIIL with a GF Score™ of 21/100. The stock has 5 warning signs investors should review. Among 1,767 Construction companies, ARC Insulation & Insulators ranks better than 76.12% 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.
ARC Insulation & Insulators Operating Margin % Related Terms
ARC Insulation & Insulators 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.
NSE:ARCIIL vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, ARC Insulation & Insulators'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.
ARC Insulation & Insulators Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, ARC Insulation & Insulators's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ARC Insulation & Insulators'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.
ARC Insulation & Insulators's Operating Margin % for the fiscal year that ended in Mar. 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.
ARC Insulation & Insulators (NSE:ARCIIL) has a Operating Margin % of 11.68% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on ARC Insulation & Insulators and its competitors. This is 49% below median its historical median of 23.04. Over the past decade, ARC Insulation & Insulators' Operating Margin % has ranged from 8.09 to 36.20. According to the industry distribution chart, ARC Insulation & Insulators ranks #422 out of 1767 companies in the Construction industry, placing it in the top 23.9%.
Is ARC Insulation & Insulators' Operating Margin % too high?
ARC Insulation & Insulators' current Operating Margin % of 11.68% is 49% below median its 10-year median of 23.04. Over the past 10 years, this metric has ranged from a low of 8.09 to a high of 36.20. The Construction industry median Operating Margin % is 5.89. ARC Insulation & Insulators' value of 11.68% is 98.3% above this industry median. Based on the distribution chart, ARC Insulation & Insulators ranks #422 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, ARC Insulation & Insulators has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does ARC Insulation & Insulators' Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, ARC Insulation & Insulators ranks #422 out of 1767 companies for Operating Margin %. This places ARC Insulation & Insulators in the top 24% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. ARC Insulation & Insulators' value of 11.68% is 98.3% above this benchmark. Historically, ARC Insulation & Insulators' own Operating Margin % has ranged from 8.09 to 36.20 over the past decade. While the company's 10-year median is 23.04 vs. the industry median of 5.89, ARC Insulation & Insulators 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. ARC Insulation & Insulators's current Operating Margin % of 11.68% is 98.3% 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 ARC Insulation & Insulators and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ARC Insulation & Insulators's current Operating Margin % is 11.68%, which is 49% below median its own 10-year median of 23.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ARC Insulation & Insulators stock overvalued right now?
ARC Insulation & Insulators (NSE:ARCIIL) has a current Operating Margin % of 11.68%. The current Operating Margin % is 11.68%, which is 49% below median its 10-year median of 23.04 and 98.3% above the Construction industry median of 5.89. ARC Insulation & Insulators' overall GF Score™ is 21/100 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 ARC Insulation & Insulators (NSE:ARCIIL), the current Operating Margin % is 11.68% as of Sep. 2025. 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.
ARC Insulation & Insulators Ltd specializes in the manufacturing and supply of Glass Fiber Reinforced Polymers, Fiber Reinforced Polymers Products (FRP) composite/constituency products which provides corrosion-resistant, tensile strength and insulating Glass Fiber Reinforced Polymer (GFRP) solutions which can be used as a substitute for steel bars/rebars. It produces dent-resistant, low thermal expansion, corrosion resistant, and insulating GFRP. Its offerings include GFRP Rebars, GFRP Granting Walkways, GFRP Pipelines, GFRP Tubes, GFRP Fencing for Transformers, GFRP Cable Trays, and other related products designed for industrial, energy and marine's sectors construction and industrial applications.
21GF Score
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