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Rocky BrandsRCKY +0.02%66 Operating Margin % is 2.92% as of Mar. 2026, which is 59% below its 10-year median of 7.16. GuruFocus rates RCKY with a GF Score™ of 66/100 and a GF Value™ of $28.24 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,042 Manufacturing - Apparel & Accessories companies, Rocky Brands ranks better than 63.72% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Rocky Brands's Operating Income for the
three
months ended in Mar. 2026 was $3.6 Mil. Rocky Brands's Revenue for the
three
months ended in Mar. 2026 was $124.4 Mil. Therefore, Rocky Brands's Operating Margin % for the quarter that ended in Mar. 2026 was 2.92%.
Warning Sign:
Rocky Brands Inc operating margin has been in a 5-year decline. The average rate of decline per year is -3.3%.
The historical rank and industry rank for Rocky Brands's Operating Margin % or its related term are showing as below:
RCKY'
s Operating Margin % Range Over the Past 10 Years
Min: 0.42 Med: 7.16 Max: 9.8
Current: 6.52
Rocky Brands's 5-Year Average Operating Margin % Growth Rate was -3.30% per year.
Rocky Brands's Operating Income for the
three
months ended in Mar. 2026 was $3.6 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $32.1 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.
Rocky Brands Operating Margin % Related Terms
Rocky Brands Operating Margin % Historical Data
* Premium members only.
The historical data trend for Rocky Brands'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.
RCKY vs DBI, FWDI, WEYS: Operating Margin % Comparison
For the Footwear & Accessories subindustry, Rocky Brands'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.
Rocky Brands Operating Margin % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Rocky Brands's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Rocky Brands'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.
Rocky Brands'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.
Rocky Brands (RCKY) has a Operating Margin % of 2.92% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Rocky Brands and its competitors. This is 59% below median its historical median of 7.16. Over the past decade, Rocky Brands' Operating Margin % has ranged from 0.42 to 9.80. According to the industry distribution chart, Rocky Brands ranks #378 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 36.3%.
Is Rocky Brands' Operating Margin % too high?
Rocky Brands' current Operating Margin % of 2.92% is 59% below median its 10-year median of 7.16. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 9.80. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.08. Rocky Brands' value of 2.92% is 28.3% below this industry median. Based on the distribution chart, Rocky Brands ranks #378 out of 1042 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Rocky Brands has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rocky Brands' Operating Margin % compare to DBI and FWDI?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Rocky Brands ranks #378 out of 1042 companies for Operating Margin %. This puts Rocky Brands in the upper half of its industry. The industry median Operating Margin % is 4.08. Rocky Brands' value of 2.92% is 28.3% below this benchmark. Historically, Rocky Brands' own Operating Margin % has ranged from 0.42 to 9.80 over the past decade. While the company's 10-year median is 7.16 vs. the industry median of 4.08, Rocky Brands 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.08, based on 1,042 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. Rocky Brands's current Operating Margin % of 2.92% is 28.3% 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 Rocky Brands and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rocky Brands's current Operating Margin % is 2.92%, which is 59% below median its own 10-year median of 7.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rocky Brands stock overvalued right now?
Based on GuruFocus' analysis, Rocky Brands (RCKY) is currently considered Significantly Overvalued. The stock's GF Value™ is $28.24, compared to a current price of $40.91 — trading 44.9% above its estimated fair value. The current Operating Margin % is 2.92%, which is 59% below median its 10-year median of 7.16 and 28.3% below the Manufacturing - Apparel & Accessories industry median of 4.08. Rocky Brands' overall GF Score™ is 66/100 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 Rocky Brands (RCKY), the current Operating Margin % is 2.92% as of Mar. 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 Rocky Brands (RCKY) Overvalued in 2026?
Based on GuruFocus' analysis, Rocky Brands stock appears to be overvalued.
The current stock price of $40.91 is trading 44.9% above its estimated GF Value™ of $28.24.
GuruFocus considers Rocky Brands to be Significantly Overvalued.
Key valuation signals for RCKY:
Operating Margin %: 2.92% (59% below median its 10-year median of 7.16)
GF Value™: $28.24 vs. price of $40.91 (44.9% above fair value)
Industry Position: 28.3% below the Manufacturing - Apparel & Accessories median (#378 of 1042)
No single metric tells the full story. See the RCKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rocky Brands Inc is a designer, manufacturer, and marketer of premium footwear and apparel under brands such as Muck, XTRATUF, Rocky, Durango, Georgia Boot, Lehigh, Ranger, and the licensed brand Michelin. The company operates through three segments, with the wholesale segment generating the majority of revenue through sales of footwear and accessories to sporting goods stores, outdoor specialty stores, online retailers, marine stores, independent retailers, mass merchants, retail uniform stores, and specialty safety shoe stores. The retail segment focuses on direct-to-consumer sales through e-commerce platforms and company-operated stores, while the contract manufacturing segment includes sales to the U.S. military, private label production, and sourcing arrangements for customers.
66GF 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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