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Merko Ehitus ASOTSE:MRK1T +0.37%70 Operating Margin % is 7.60% as of Jun. 2026, which is 2% below its 10-year median of 7.72. GuruFocus rates OTSE:MRK1T with a GF Score™ of 70/100 and a GF Value™ of €13.51 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,773 Construction companies, Merko Ehitus AS ranks better than 62.94% on this metric.
Merko Ehitus AS (OTSE:MRK1T) 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.
Merko Ehitus AS Operating Margin % Related Terms
Merko Ehitus AS Operating Margin % Historical Data
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The historical data trend for Merko Ehitus AS'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.
OTSE:MRK1T vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Merko Ehitus AS'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.
Merko Ehitus AS Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Merko Ehitus AS's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Merko Ehitus AS'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.
Merko Ehitus AS'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.
Merko Ehitus AS (OTSE:MRK1T) has a Operating Margin % of 7.60% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Merko Ehitus AS and its competitors. This is near median its historical median of 7.72. Over the past decade, Merko Ehitus AS's Operating Margin % has ranged from 2.15 to 12.55. According to the industry distribution chart, Merko Ehitus AS ranks #657 out of 1773 companies in the Construction industry, placing it in the top 37.1%.
Is Merko Ehitus AS's Operating Margin % too high?
Merko Ehitus AS's current Operating Margin % of 7.60% is near median its 10-year median of 7.72. Over the past 10 years, this metric has ranged from a low of 2.15 to a high of 12.55. The Construction industry median Operating Margin % is 5.91. Merko Ehitus AS's value of 7.60% is 28.6% above this industry median. Based on the distribution chart, Merko Ehitus AS ranks #657 out of 1773 companies in the Construction industry, which is above the industry midpoint. Overall, Merko Ehitus AS has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Merko Ehitus AS's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Merko Ehitus AS ranks #657 out of 1773 companies for Operating Margin %. This puts Merko Ehitus AS in the upper half of its industry. The industry median Operating Margin % is 5.91. Merko Ehitus AS's value of 7.60% is 28.6% above this benchmark. Historically, Merko Ehitus AS's own Operating Margin % has ranged from 2.15 to 12.55 over the past decade. While the company's 10-year median is 7.72 vs. the industry median of 5.91, Merko Ehitus AS 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 Construction company?
The median Operating Margin % among Construction companies is 5.91, based on 1,773 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. Merko Ehitus AS's current Operating Margin % of 7.60% is 28.6% 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 Merko Ehitus AS and its competitors. For the Construction industry, the median Operating Margin % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Merko Ehitus AS's current Operating Margin % is 7.60%, which is near median its own 10-year median of 7.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Merko Ehitus AS stock overvalued right now?
Based on GuruFocus' analysis, Merko Ehitus AS (OTSE:MRK1T) is currently considered Significantly Overvalued. The stock's GF Value™ is €13.51, compared to a current price of €26.90 — trading 99.1% above its estimated fair value. The current Operating Margin % is 7.60%, which is near median its 10-year median of 7.72 and 28.6% above the Construction industry median of 5.91. Merko Ehitus AS's overall GF Score™ is 70/100 with 9 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 Merko Ehitus AS (OTSE:MRK1T), the current Operating Margin % is 7.60% as of Jun. 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 Merko Ehitus AS (OTSE:MRK1T) Overvalued in 2026?
Based on GuruFocus' analysis, Merko Ehitus AS stock appears to be overvalued.
The current stock price of €26.90 is trading 99.1% above its estimated GF Value™ of €13.51.
GuruFocus considers Merko Ehitus AS to be Significantly Overvalued.
Key valuation signals for OTSE:MRK1T:
Operating Margin %: 7.60% (near median its 10-year median of 7.72)
GF Value™: €13.51 vs. price of €26.90 (99.1% above fair value)
Industry Position: 28.6% above the Construction median (#657 of 1773)
No single metric tells the full story. See the OTSE:MRK1T stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Merko Ehitus AS is a construction company. The company is engaged in the business of general contracting of construction and on providing complete solutions in professional construction and real estate development. The company operates under two reportable segments: construction service and real estate development. Construction service contributes to the majority of the revenue. The Construction service segment includes all projects of the home markets in general construction, civil engineering, electrical construction and concrete works services. The firm operates mainly in Estonia, Lithuania, Latvia, and Norway. Geographically, the company generates the majority of its revenue from Estonia.
70GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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