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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.
Rashtriya Chemicals & Fertilizers Operating Margin % Related Terms
Rashtriya Chemicals & Fertilizers 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:RCF vs CTVA, CF, MOS: Operating Margin % Comparison
For the Agricultural Inputs subindustry, Rashtriya Chemicals & Fertilizers'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.
Rashtriya Chemicals & Fertilizers Operating Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, Rashtriya Chemicals & Fertilizers's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rashtriya Chemicals & Fertilizers'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.
Rashtriya Chemicals & Fertilizers (NSE:RCF) has a Operating Margin % of 4.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rashtriya Chemicals & Fertilizers and its competitors. This is 51% below median its historical median of 8.93. Over the past decade, Rashtriya Chemicals & Fertilizers' Operating Margin % has ranged from 2.43 to 17.76. According to the industry distribution chart, Rashtriya Chemicals & Fertilizers ranks #166 out of 248 companies in the Agriculture industry, placing it in the top 66.9%.
Is Rashtriya Chemicals & Fertilizers' Operating Margin % too high?
Rashtriya Chemicals & Fertilizers' current Operating Margin % of 4.37% is 51% below median its 10-year median of 8.93. Over the past 10 years, this metric has ranged from a low of 2.43 to a high of 17.76. The Agriculture industry median Operating Margin % is 7.04. Rashtriya Chemicals & Fertilizers' value of 4.37% is 37.9% below this industry median. Based on the distribution chart, Rashtriya Chemicals & Fertilizers ranks #166 out of 248 companies in the Agriculture industry, which is below the industry midpoint. Overall, Rashtriya Chemicals & Fertilizers has a GF Score™ of 74/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Rashtriya Chemicals & Fertilizers' Operating Margin % compare to CTVA and CF?
According to the Agriculture industry distribution chart, Rashtriya Chemicals & Fertilizers ranks #166 out of 248 companies for Operating Margin %. This places Rashtriya Chemicals & Fertilizers in the lower half of its industry. The industry median Operating Margin % is 7.04. Rashtriya Chemicals & Fertilizers' value of 4.37% is 37.9% below this benchmark. Historically, Rashtriya Chemicals & Fertilizers' own Operating Margin % has ranged from 2.43 to 17.76 over the past decade. While the company's 10-year median is 8.93 vs. the industry median of 7.04, Rashtriya Chemicals & Fertilizers 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 7.04, based on 248 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. Rashtriya Chemicals & Fertilizers's current Operating Margin % of 4.37% is 37.9% 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 Rashtriya Chemicals & Fertilizers and its competitors. For the Agriculture industry, the median Operating Margin % is 7.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rashtriya Chemicals & Fertilizers's current Operating Margin % is 4.37%, which is 51% below median its own 10-year median of 8.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rashtriya Chemicals & Fertilizers stock overvalued right now?
Based on GuruFocus' analysis, Rashtriya Chemicals & Fertilizers (NSE:RCF) is currently considered Possible Value Trap. The stock's GF Value™ is ₹364.01, compared to a current price of ₹130.47 — trading 64.2% below its estimated fair value. The current Operating Margin % is 4.37%, which is 51% below median its 10-year median of 8.93 and 37.9% below the Agriculture industry median of 7.04. Rashtriya Chemicals & Fertilizers' overall GF Score™ is 74/100 with 4 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 Rashtriya Chemicals & Fertilizers (NSE:RCF), the current Operating Margin % is 4.37% 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 Rashtriya Chemicals & Fertilizers (NSE:RCF) Overvalued in 2026?
Based on GuruFocus' analysis, Rashtriya Chemicals & Fertilizers stock appears to be undervalued.
The current stock price of ₹130.47 is trading 64.2% below its estimated GF Value™ of ₹364.01.
GuruFocus considers Rashtriya Chemicals & Fertilizers to be Possible Value Trap.
Key valuation signals for NSE:RCF:
Operating Margin %: 4.37% (51% below median its 10-year median of 8.93)
GF Value™: ₹364.01 vs. price of ₹130.47 (64.2% below fair value)
Industry Position: 37.9% below the Agriculture median (#166 of 248)
No single metric tells the full story. See the NSE:RCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rashtriya Chemicals & Fertilizers Business Description
Rashtriya Chemicals & Fertilizers Ltd is engaged in the manufacturing and marketing of fertilizers and industrial chemicals. It is a government-owned company under the Ministry of Chemicals and Fertilizers, India. It operates two manufacturing units in Mumbai and Thal, Maharashtra. It produces fertilizers such as urea, complex fertilizers (NPK), bio-fertilizers, micronutrients, and water-soluble fertilizers, along with a range of industrial chemicals used in various industries. The company distributes its products across India and outside India. The company also offers soil testing and farmer training services. The Company has the following operating segments: Fertilizers, Industrial Chemicals, and Trading. The majority revenue generation segment is Industrial Chemicals.
74GF Score
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