Paramount Speciality ForgingsNSE:PSFL +0.15%13 Operating Margin % is 7.31% as of Mar. 2025, which is 82% above its 10-year median of 4.01. GuruFocus rates NSE:PSFL with a GF Score™ of 13/100. The stock has 5 warning signs investors should review. Among 3,038 Industrial Products companies, Paramount Speciality Forgings ranks better than 54.08% on this metric.
The historical rank and industry rank for Paramount Speciality Forgings's Operating Margin % or its related term are showing as below:
NSE:PSFL'
s Operating Margin % Range Over the Past 10 Years
Min: 1.21 Med: 4.01 Max: 10.1
Current: 7.31
NSE:PSFL's Operating Margin % is ranked better than 54.08% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs NSE:PSFL: 7.31
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.
Paramount Speciality Forgings Operating Margin % Related Terms
Paramount Speciality Forgings 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:PSFL vs ATI, CRS, MLI: Operating Margin % Comparison
For the Metal Fabrication subindustry, Paramount Speciality Forgings'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.
Paramount Speciality Forgings Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Paramount Speciality Forgings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Paramount Speciality Forgings'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.
* 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.
Paramount Speciality Forgings (NSE:PSFL) has a Operating Margin % of 7.31% as of Mar. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Paramount Speciality Forgings and its competitors. This is 82% above median its historical median of 4.01. Over the past decade, Paramount Speciality Forgings' Operating Margin % has ranged from 1.21 to 10.10. According to the industry distribution chart, Paramount Speciality Forgings ranks #1395 out of 3038 companies in the Industrial Products industry, placing it in the top 45.9%.
Is Paramount Speciality Forgings' Operating Margin % too high?
Paramount Speciality Forgings' current Operating Margin % of 7.31% is 82% above median its 10-year median of 4.01. Over the past 10 years, this metric has ranged from a low of 1.21 to a high of 10.10. The Industrial Products industry median Operating Margin % is 6.53. Paramount Speciality Forgings' value of 7.31% is 11.9% above this industry median. Based on the distribution chart, Paramount Speciality Forgings ranks #1395 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Paramount Speciality Forgings has a GF Score™ of 13/100, reflecting its overall financial health beyond just this single metric.
How does Paramount Speciality Forgings' Operating Margin % compare to ATI and CRS?
According to the Industrial Products industry distribution chart, Paramount Speciality Forgings ranks #1395 out of 3038 companies for Operating Margin %. This puts Paramount Speciality Forgings in the upper half of its industry. The industry median Operating Margin % is 6.53. Paramount Speciality Forgings' value of 7.31% is 11.9% above this benchmark. Historically, Paramount Speciality Forgings' own Operating Margin % has ranged from 1.21 to 10.10 over the past decade. While the company's 10-year median is 4.01 vs. the industry median of 6.53, Paramount Speciality Forgings 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Paramount Speciality Forgings's current Operating Margin % of 7.31% is 11.9% 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 Paramount Speciality Forgings and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Paramount Speciality Forgings's current Operating Margin % is 7.31%, which is 82% above median its own 10-year median of 4.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Paramount Speciality Forgings stock overvalued right now?
Paramount Speciality Forgings (NSE:PSFL) has a current Operating Margin % of 7.31%. The current Operating Margin % is 7.31%, which is 82% above median its 10-year median of 4.01 and 11.9% above the Industrial Products industry median of 6.53. Paramount Speciality Forgings' overall GF Score™ is 13/100 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 Paramount Speciality Forgings (NSE:PSFL), the current Operating Margin % is 7.31% as of Mar. 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.
Paramount Speciality Forgings Business Description
Paramount Speciality Forgings Ltd is engaged in manufacturing steel forgings in India. It manufactures and provides forged components ranging in weight from one kilogram to four metric tons in rough or finish-machined condition. Its products are used in industries such as Petrochemicals, Chemicals, Fertilizers, Oil and Gas, Nuclear Power, and other heavy engineering sectors. The company only operates in the sale of carbon steel and stainless steel flanges and fittings, and other engineering goods made from steel and stainless steel, or any other goods and merchandise.
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