The Fertilizers & Chemicals Travancore (NSE:FACT) Operating Margin % Explanation
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.
The Fertilizers & Chemicals Travancore Operating Margin % Related Terms
The Fertilizers & Chemicals Travancore 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.
The Fertilizers & Chemicals Travancore Operating Margin % Chart
The Fertilizers & Chemicals Travancore Annual Data
NSE:FACT vs CTVA, CF: Operating Margin % Comparison
For the Agricultural Inputs subindustry, The Fertilizers & Chemicals Travancore'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.
The Fertilizers & Chemicals Travancore Operating Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, The Fertilizers & Chemicals Travancore's Operating Margin % distribution charts can be found below:
* The bar in red indicates where The Fertilizers & Chemicals Travancore's Operating Margin % falls into.
The Fertilizers & Chemicals Travancore Operating Margin % Calculation
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.
* 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.
The Fertilizers & Chemicals Travancore (NSE:FACT) has a Operating Margin % of 2.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on The Fertilizers & Chemicals Travancore and its competitors. This is 80% below median its historical median of 12.06. According to the industry distribution chart, The Fertilizers & Chemicals Travancore ranks #196 out of 251 companies in the Agriculture industry, placing it in the top 78.1%.
Is The Fertilizers & Chemicals Travancore's Operating Margin % too high?
The Fertilizers & Chemicals Travancore's current Operating Margin % of 2.44% is 80% below median its 10-year median of 12.06. The Agriculture industry median Operating Margin % is 6.76. The Fertilizers & Chemicals Travancore's value of 2.44% is 63.9% below this industry median. Based on the distribution chart, The Fertilizers & Chemicals Travancore ranks #196 out of 251 companies in the Agriculture industry, which is in the bottom quartile relative to peers. Overall, The Fertilizers & Chemicals Travancore has a GF Score™ of 76/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does The Fertilizers & Chemicals Travancore's Operating Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, The Fertilizers & Chemicals Travancore ranks #196 out of 251 companies for Operating Margin %. This places The Fertilizers & Chemicals Travancore in the lower half of its industry. The industry median Operating Margin % is 6.76. The Fertilizers & Chemicals Travancore's value of 2.44% is 63.9% below this benchmark. While the company's 10-year median is 12.06 vs. the industry median of 6.76, The Fertilizers & Chemicals Travancore 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 an Agriculture company?
The median Operating Margin % among Agriculture companies is 6.76, based on 251 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. The Fertilizers & Chemicals Travancore's current Operating Margin % of 2.44% is 63.9% 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 The Fertilizers & Chemicals Travancore and its competitors. For the Agriculture industry, the median Operating Margin % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Fertilizers & Chemicals Travancore's current Operating Margin % is 2.44%, which is 80% below median its own 10-year median of 12.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Fertilizers & Chemicals Travancore stock overvalued right now?
Based on GuruFocus' analysis, The Fertilizers & Chemicals Travancore (NSE:FACT) is currently considered Possible Value Trap. The stock's GF Value™ is ₹1,414.78, compared to a current price of ₹900.45 — trading 36.4% below its estimated fair value. The current Operating Margin % is 2.44%, which is 80% below median its 10-year median of 12.06 and 63.9% below the Agriculture industry median of 6.76. The Fertilizers & Chemicals Travancore's overall GF Score™ is 76/100 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 The Fertilizers & Chemicals Travancore (NSE:FACT), the current Operating Margin % is 2.44% 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 The Fertilizers & Chemicals Travancore (NSE:FACT) Overvalued in 2026?
Based on GuruFocus' analysis, The Fertilizers & Chemicals Travancore stock appears to be undervalued.
The current stock price of ₹900.45 is trading 36.4% below its estimated GF Value™ of ₹1,414.78.
GuruFocus considers The Fertilizers & Chemicals Travancore to be Possible Value Trap.
Key valuation signals for NSE:FACT:
Operating Margin %: 2.44% (80% below median its 10-year median of 12.06)
GF Value™: ₹1,414.78 vs. price of ₹900.45 (36.4% below fair value)
Industry Position: 63.9% below the Agriculture median (#196 of 251)
No single metric tells the full story. See the NSE:FACT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Fertilizers & Chemicals Travancore Business Description
The Fertilizers & Chemicals Travancore Ltd is engaged in the manufacturing and marketing of fertilizers and petrochemicals, engineering consultancy and design, and fabrication and erection of industrial equipment. The company has two segments: Fertilizer and Petrochemical. The Fertilizer segment includes Ammonium Phosphate (Factamfos), Zincated Factamfos, Ammonium Sulphate, MOP, NPK 15:15:15, and Organic Manures, while the Petrochemical segment includes Caprolactam. The majority of its revenue is generated from the fertilizers segment.
76GF Score
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