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Operating Margin % is calculated as Operating Income divided by its Revenue. Premier's Operating Income for the
three
months ended in Sep. 2025 was $25 Mil. Premier's Revenue for the
three
months ended in Sep. 2025 was $240 Mil. Therefore, Premier's Operating Margin % for the quarter that ended in Sep. 2025 was 10.37%.
Warning Sign:
Premier Inc operating margin has been in a 5-year decline. The average rate of decline per year is -55.7%.
The historical rank and industry rank for Premier's Operating Margin % or its related term are showing as below:
PINC'
s Operating Margin % Range Over the Past 10 Years
Min: -0.93 Med: 22.59 Max: 45.61
Current: -0.93
PINC's Operating Margin % is not ranked
in the Healthcare Providers & Services industry.
Industry Median: 5.03
vs PINC: -0.93
Premier's 5-Year Average Operating Margin % Growth Rate was -55.70% per year.
Premier's Operating Income for the
three
months ended in Sep. 2025 was $25 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2025 was $-9 Mil.
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.
Premier Operating Margin % Related Terms
Premier Operating Margin % Historical Data
* Premium members only.
The historical data trend for Premier'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.
PINC vs TXG, HTFL, PRVA: Operating Margin % Comparison
For the Health Information Services subindustry, Premier'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.
Premier Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, Premier's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Premier'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.
Premier'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.
Premier (PINC) has a Operating Margin % of 10.37% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Premier and its competitors. This is 54% below median its historical median of 22.59.
Is Premier's Operating Margin % too high?
Premier's current Operating Margin % of 10.37% is 54% below median its 10-year median of 22.59. The Healthcare Providers & Services industry median Operating Margin % is 5.03. Premier's value of 10.37% is 106.2% above this industry median. Overall, Premier has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does Premier's Operating Margin % compare to TXG and HTFL?
Premier's Operating Margin % of 10.37% can be compared against companies in the Healthcare Providers & Services industry. The industry median Operating Margin % is 5.03. Premier's value of 10.37% is 106.2% above this benchmark. While the company's 10-year median is 22.59 vs. the industry median of 5.03, Premier 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 Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 5.03, based on 664 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. Premier's current Operating Margin % of 10.37% is 106.2% 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 Premier and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 5.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Premier's current Operating Margin % is 10.37%, which is 54% below median its own 10-year median of 22.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Premier stock overvalued right now?
Premier (PINC) has a current Operating Margin % of 10.37%. The stock's GF Value™ is $27.61, compared to a current price of $49.95 — trading 80.9% above its estimated fair value. The current Operating Margin % is 10.37%, which is 54% below median its 10-year median of 22.59 and 106.2% above the Healthcare Providers & Services industry median of 5.03. Premier's overall GF Score™ is 54/100 with 8 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 Premier (PINC), the current Operating Margin % is 10.37% as of Sep. 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 Premier (PINC) Overvalued in 2026?
Based on GuruFocus' analysis, Premier stock appears to be overvalued.
The current stock price of $49.95 is trading 80.9% above its estimated GF Value™ of $27.61.
Key valuation signals for PINC:
Operating Margin %: 10.37% (54% below median its 10-year median of 22.59)
GF Value™: $27.61 vs. price of $49.95 (80.9% above fair value)
Industry Position: 106.2% above the Healthcare Providers & Services median
No single metric tells the full story. See the PINC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Premier Inc is a Charlotte, North Carolina-based technology-driven healthcare improvement company, uniting an alliance of United States (U.S.) hospitals, health systems, and other providers and organizations to transform healthcare. The company's revenue is all sourced domestically and is reported in two business segments: the supply chain services and the consulting and technology platform of performance services. It generates the majority of its revenue from the supply chain services segment.
54GF Score
Get the complete analysis for PINC
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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