Nexteer Automotive GroupNTXVF -14.88%59 Operating Margin % is 2.73% as of Dec. 2025, which is 28% below its 10-year median of 3.81. GuruFocus rates NTXVF with a GF Score™ of 59/100 and a GF Value™ of $0.72 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 1,322 Vehicles & Parts companies, Nexteer Automotive Group ranks worse than 62.33% on this metric.
Nexteer Automotive Group (OTCPK:NTXVF) 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.
Nexteer Automotive Group Operating Margin % Related Terms
Nexteer Automotive Group 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.
For the Auto Parts subindustry, Nexteer Automotive Group'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.
Nexteer Automotive Group Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Nexteer Automotive Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nexteer Automotive Group's Operating Margin % falls into.
Nexteer Automotive Group 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.
Nexteer Automotive Group'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.
Nexteer Automotive Group (NTXVF) has a Operating Margin % of 2.73% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nexteer Automotive Group and its competitors. This is 28% below median its historical median of 3.81. Over the past decade, Nexteer Automotive Group's Operating Margin % has ranged from 1.50 to 10.93. According to the industry distribution chart, Nexteer Automotive Group ranks #824 out of 1322 companies in the Vehicles & Parts industry, placing it in the top 62.3%.
Is Nexteer Automotive Group's Operating Margin % too high?
Nexteer Automotive Group's current Operating Margin % of 2.73% is 28% below median its 10-year median of 3.81. Over the past 10 years, this metric has ranged from a low of 1.50 to a high of 10.93. The Vehicles & Parts industry median Operating Margin % is 4.88. Nexteer Automotive Group's value of 2.73% is 44.1% below this industry median. Based on the distribution chart, Nexteer Automotive Group ranks #824 out of 1322 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Nexteer Automotive Group has a GF Score™ of 59/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nexteer Automotive Group's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Nexteer Automotive Group ranks #824 out of 1322 companies for Operating Margin %. This places Nexteer Automotive Group in the lower half of its industry. The industry median Operating Margin % is 4.88. Nexteer Automotive Group's value of 2.73% is 44.1% below this benchmark. Historically, Nexteer Automotive Group's own Operating Margin % has ranged from 1.50 to 10.93 over the past decade. While the company's 10-year median is 3.81 vs. the industry median of 4.88, Nexteer Automotive Group 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 a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.88, based on 1,322 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. Nexteer Automotive Group's current Operating Margin % of 2.73% is 44.1% 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 Nexteer Automotive Group and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nexteer Automotive Group's current Operating Margin % is 2.73%, which is 28% below median its own 10-year median of 3.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nexteer Automotive Group stock overvalued right now?
Based on GuruFocus' analysis, Nexteer Automotive Group (NTXVF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.72, compared to a current price of $0.51 — trading 29.1% below its estimated fair value. The current Operating Margin % is 2.73%, which is 28% below median its 10-year median of 3.81 and 44.1% below the Vehicles & Parts industry median of 4.88. Nexteer Automotive Group's overall GF Score™ is 59/100 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 Nexteer Automotive Group (NTXVF), the current Operating Margin % is 2.73% as of Dec. 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.
Is Nexteer Automotive Group (NTXVF) Overvalued in 2026?
Based on GuruFocus' analysis, Nexteer Automotive Group stock appears to be undervalued.
The current stock price of $0.51 is trading 29.1% below its estimated GF Value™ of $0.72.
GuruFocus considers Nexteer Automotive Group to be Modestly Undervalued.
Key valuation signals for NTXVF:
Operating Margin %: 2.73% (28% below median its 10-year median of 3.81)
GF Value™: $0.72 vs. price of $0.51 (29.1% below fair value)
Industry Position: 44.1% below the Vehicles & Parts median (#824 of 1322)
No single metric tells the full story. See the NTXVF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nexteer Automotive Group Ltd offers steering and driveline systems. The company designs, manufactures, and distributes steering and driveline systems and components, mainly for automotive OEMs. It continues to develop braking technology that will be instrumental to the software-defined chassis. The company's customers are automakers like BMW, Fiat Chrysler, Ford, GM, and Toyota, as well as automakers in India, South America, and China. The Group classifies its businesses into three reportable segments: North America, Asia Pacific, and Europe, the Middle East, Africa, and South America (EMEASA). All of the Group's operating segments typically offer the same steering and driveline products; the majority are derived from North America.
59GF Score
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