Freightways GroupNZSE:FRW +0.60%96 Operating Margin % is 12.58% as of Dec. 2025, which is 17% below its 10-year median of 15.07. GuruFocus rates NZSE:FRW with a GF Score™ of 96/100 and a GF Value™ of NZ$12.14 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,007 Transportation companies, Freightways Group ranks better than 66.83% on this metric.
Freightways Group (NZSE:FRW) 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.
Freightways Group Operating Margin % Related Terms
Freightways Group Operating Margin % Historical Data
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The historical data trend for Freightways Group's Operating Margin % can be seen below:
* 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.
NZSE:FRW vs FDX, UPS, JBHT: Operating Margin % Comparison
For the Integrated Freight & Logistics subindustry, Freightways 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.
Freightways Group Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Freightways Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Freightways Group'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.
Freightways Group's Operating Margin % for the fiscal year that ended in Jun. 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.
Freightways Group (NZSE:FRW) has a Operating Margin % of 12.58% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Freightways Group and its competitors. This is 17% below median its historical median of 15.07. Over the past decade, Freightways Group's Operating Margin % has ranged from 11.19 to 17.02. According to the industry distribution chart, Freightways Group ranks #334 out of 1007 companies in the Transportation industry, placing it in the top 33.2%.
Is Freightways Group's Operating Margin % too high?
Freightways Group's current Operating Margin % of 12.58% is 17% below median its 10-year median of 15.07. Over the past 10 years, this metric has ranged from a low of 11.19 to a high of 17.02. The Transportation industry median Operating Margin % is 7.36. Freightways Group's value of 12.58% is 70.9% above this industry median. Based on the distribution chart, Freightways Group ranks #334 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, Freightways Group has a GF Score™ of 96/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Freightways Group's Operating Margin % compare to FDX and UPS?
According to the Transportation industry distribution chart, Freightways Group ranks #334 out of 1007 companies for Operating Margin %. This puts Freightways Group in the upper half of its industry. The industry median Operating Margin % is 7.36. Freightways Group's value of 12.58% is 70.9% above this benchmark. Historically, Freightways Group's own Operating Margin % has ranged from 11.19 to 17.02 over the past decade. While the company's 10-year median is 15.07 vs. the industry median of 7.36, Freightways 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. Freightways Group's current Operating Margin % of 12.58% is 70.9% 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 Freightways Group and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Freightways Group's current Operating Margin % is 12.58%, which is 17% below median its own 10-year median of 15.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Freightways Group stock overvalued right now?
Based on GuruFocus' analysis, Freightways Group (NZSE:FRW) is currently considered Fairly Valued. The stock's GF Value™ is NZ$12.14, compared to a current price of NZ$13.32 — trading 9.7% above its estimated fair value. The current Operating Margin % is 12.58%, which is 17% below median its 10-year median of 15.07 and 70.9% above the Transportation industry median of 7.36. Freightways Group's overall GF Score™ is 96/100 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 Freightways Group (NZSE:FRW), the current Operating Margin % is 12.58% 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 Freightways Group (NZSE:FRW) Overvalued in 2026?
Based on GuruFocus' analysis, Freightways Group stock appears to be overvalued.
The current stock price of NZ$13.32 is trading 9.7% above its estimated GF Value™ of NZ$12.14.
GuruFocus considers Freightways Group to be Fairly Valued.
Key valuation signals for NZSE:FRW:
Operating Margin %: 12.58% (17% below median its 10-year median of 15.07)
GF Value™: NZ$12.14 vs. price of NZ$13.32 (9.7% above fair value)
Industry Position: 70.9% above the Transportation median (#334 of 1007)
No single metric tells the full story. See the NZSE:FRW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Freightways Group Ltd is a provider of express package services throughout New Zealand and Australia. The company is organized into three reportable segments: Express Package and Business Mail, Information Management, and Corporate and others. The Express Package and Business Mail segment covers network courier, point-to-point courier, and postal services. Information management comprises secure paper-based and electronic business information management services. Corporate and other comprises corporate, financing, and property management services. Key revenue is derived from the Express Package and Business Mail divisions.
96GF Score
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