Fonterra Co-operative GroupNZSE:FCG -1.17%65 Operating Margin % is 8.39% as of Jan. 2026, which is 62% above its 10-year median of 5.17. GuruFocus rates NZSE:FCG with a GF Score™ of 65/100 and a GF Value™ of NZ$2.96 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,946 Consumer Packaged Goods companies, Fonterra Co-operative Group ranks better than 56.53% on this metric.
Fonterra Co-operative Group Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Fonterra Co-operative Group's Operating Margin % or its related term are showing as below:
NZSE:FCG'
s Operating Margin % Range Over the Past 10 Years
Min: 4.15 Med: 5.17 Max: 8.18
Current: 6.47
NZSE:FCG's Operating Margin % is ranked better than 56.53% of 1946
companies
in the Consumer Packaged Goods industry
Industry Median: 5.285
vs NZSE:FCG: 6.47
Fonterra Co-operative Group (NZSE:FCG) 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.
Fonterra Co-operative Group Operating Margin % Related Terms
Fonterra Co-operative 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.
Fonterra Co-operative Group Operating Margin % Chart
NZSE:FCG vs KHC, GIS, HRL: Operating Margin % Comparison
For the Packaged Foods subindustry, Fonterra Co-operative 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.
Fonterra Co-operative Group Operating Margin % vs Consumer Packaged Goods Industry
For the Consumer Packaged Goods industry and Consumer Defensive sector, Fonterra Co-operative Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fonterra Co-operative Group's Operating Margin % falls into.
Fonterra Co-operative 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.
Fonterra Co-operative Group's Operating Margin % for the fiscal year that ended in Jul. 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.
Fonterra Co-operative Group (NZSE:FCG) has a Operating Margin % of 8.39% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fonterra Co-operative Group and its competitors. This is 62% above median its historical median of 5.17. Over the past decade, Fonterra Co-operative Group's Operating Margin % has ranged from 4.15 to 8.18. According to the industry distribution chart, Fonterra Co-operative Group ranks #846 out of 1946 companies in the Consumer Packaged Goods industry, placing it in the top 43.5%.
Is Fonterra Co-operative Group's Operating Margin % too high?
Fonterra Co-operative Group's current Operating Margin % of 8.39% is 62% above median its 10-year median of 5.17. Over the past 10 years, this metric has ranged from a low of 4.15 to a high of 8.18. The Consumer Packaged Goods industry median Operating Margin % is 5.29. Fonterra Co-operative Group's value of 8.39% is 58.8% above this industry median. Based on the distribution chart, Fonterra Co-operative Group ranks #846 out of 1946 companies in the Consumer Packaged Goods industry, which is above the industry midpoint. Overall, Fonterra Co-operative Group has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Fonterra Co-operative Group's Operating Margin % compare to KHC and GIS?
According to the Consumer Packaged Goods industry distribution chart, Fonterra Co-operative Group ranks #846 out of 1946 companies for Operating Margin %. This puts Fonterra Co-operative Group in the upper half of its industry. The industry median Operating Margin % is 5.29. Fonterra Co-operative Group's value of 8.39% is 58.8% above this benchmark. Historically, Fonterra Co-operative Group's own Operating Margin % has ranged from 4.15 to 8.18 over the past decade. While the company's 10-year median is 5.17 vs. the industry median of 5.29, Fonterra Co-operative Group 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 Consumer Packaged Goods company?
The median Operating Margin % among Consumer Packaged Goods companies is 5.29, based on 1,946 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. Fonterra Co-operative Group's current Operating Margin % of 8.39% is 58.8% 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 Fonterra Co-operative Group and its competitors. For the Consumer Packaged Goods industry, the median Operating Margin % is 5.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fonterra Co-operative Group's current Operating Margin % is 8.39%, which is 62% above median its own 10-year median of 5.17. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fonterra Co-operative Group stock overvalued right now?
Based on GuruFocus' analysis, Fonterra Co-operative Group (NZSE:FCG) is currently considered Significantly Overvalued. The stock's GF Value™ is NZ$2.96, compared to a current price of NZ$4.21 — trading 42.2% above its estimated fair value. The current Operating Margin % is 8.39%, which is 62% above median its 10-year median of 5.17 and 58.8% above the Consumer Packaged Goods industry median of 5.29. Fonterra Co-operative Group's overall GF Score™ is 65/100 with 6 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 Fonterra Co-operative Group (NZSE:FCG), the current Operating Margin % is 8.39% as of Jan. 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 Fonterra Co-operative Group (NZSE:FCG) Overvalued in 2026?
Based on GuruFocus' analysis, Fonterra Co-operative Group stock appears to be overvalued.
The current stock price of NZ$4.21 is trading 42.2% above its estimated GF Value™ of NZ$2.96.
GuruFocus considers Fonterra Co-operative Group to be Significantly Overvalued.
Key valuation signals for NZSE:FCG:
Operating Margin %: 8.39% (62% above median its 10-year median of 5.17)
GF Value™: NZ$2.96 vs. price of NZ$4.21 (42.2% above fair value)
Industry Position: 58.8% above the Consumer Packaged Goods median (#846 of 1946)
No single metric tells the full story. See the NZSE:FCG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fonterra Co-operative Group Ltd operates predominantly in the international dairy industry. The company is involved in the collection, manufacture, and sale of milk and milk-derived products through its ingredients, Consumer and Foodservice channels. The company's reportable segments are Global Markets, Greater China, and Core Operations and the majority of the revenue is generated from its core operations segment. Its primary geographic markets is Asia, China, Australia, New Zealand, the United States, and the Rest of the world.
65GF Score
Get the complete analysis for NZSE:FCG
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
NZSE:FCG has been successfully added to your 
