Russel MetalsRUSMF -6.91%79 Operating Margin % is 4.39% as of Mar. 2026, which is 23% below its 10-year median of 5.71. GuruFocus rates RUSMF with a GF Score™ of 79/100 and a GF Value™ of $36.59 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 157 Industrial Distribution companies, Russel Metals ranks better than 50.96% on this metric.
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.
Russel Metals Operating Margin % Related Terms
Russel Metals Operating Margin % Historical Data
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The historical data trend for Russel Metals'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.
RUSMF vs GWW, FAST, FERG: Operating Margin % Comparison
For the Industrial Distribution subindustry, Russel Metals'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.
Russel Metals Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Russel Metals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Russel Metals'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.
Russel Metals'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.
Russel Metals (RUSMF) has a Operating Margin % of 4.39% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Russel Metals and its competitors. This is 23% below median its historical median of 5.71. Over the past decade, Russel Metals' Operating Margin % has ranged from 3.40 to 14.31. According to the industry distribution chart, Russel Metals ranks #77 out of 157 companies in the Industrial Distribution industry, placing it in the top 49%.
Is Russel Metals' Operating Margin % too high?
Russel Metals' current Operating Margin % of 4.39% is 23% below median its 10-year median of 5.71. Over the past 10 years, this metric has ranged from a low of 3.40 to a high of 14.31. The Industrial Distribution industry median Operating Margin % is 4.74. Russel Metals' value of 4.39% is 7.4% below this industry median. Based on the distribution chart, Russel Metals ranks #77 out of 157 companies in the Industrial Distribution industry, which is above the industry midpoint. Overall, Russel Metals has a GF Score™ of 79/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Russel Metals' Operating Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Russel Metals ranks #77 out of 157 companies for Operating Margin %. This puts Russel Metals in the upper half of its industry. The industry median Operating Margin % is 4.74. Russel Metals' value of 4.39% is 7.4% below this benchmark. Historically, Russel Metals' own Operating Margin % has ranged from 3.40 to 14.31 over the past decade. While the company's 10-year median is 5.71 vs. the industry median of 4.74, Russel Metals 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 an Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.74, based on 157 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. Russel Metals's current Operating Margin % of 4.39% is 7.4% 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 Russel Metals and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Russel Metals's current Operating Margin % is 4.39%, which is 23% below median its own 10-year median of 5.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Russel Metals stock overvalued right now?
Based on GuruFocus' analysis, Russel Metals (RUSMF) is currently considered Modestly Overvalued. The stock's GF Value™ is $36.59, compared to a current price of $41.89 — trading 14.5% above its estimated fair value. The current Operating Margin % is 4.39%, which is 23% below median its 10-year median of 5.71 and 7.4% below the Industrial Distribution industry median of 4.74. Russel Metals' overall GF Score™ is 79/100 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 Russel Metals (RUSMF), the current Operating Margin % is 4.39% 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 Russel Metals (RUSMF) Overvalued in 2026?
Based on GuruFocus' analysis, Russel Metals stock appears to be overvalued.
The current stock price of $41.89 is trading 14.5% above its estimated GF Value™ of $36.59.
GuruFocus considers Russel Metals to be Modestly Overvalued.
Key valuation signals for RUSMF:
Operating Margin %: 4.39% (23% below median its 10-year median of 5.71)
GF Value™: $36.59 vs. price of $41.89 (14.5% above fair value)
Industry Position: 7.4% below the Industrial Distribution median (#77 of 157)
No single metric tells the full story. See the RUSMF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Russel Metals Inc is a Canada-based metal distribution company. The company conducts business in Canada and the U.S. in three operating and reportable segments: Metals Service Centers, Energy Field Stores, and Steel Distributors. The majority of its revenue is generated from the Metals Service Centers segment, which carries an extensive line of metal products in a wide range of sizes, shapes, and specifications, including carbon hot rolled and cold finished steel, pipe and tubular products, stainless steel, aluminum, and other non-ferrous specialty metals. It purchases these products mainly from North American steel producers, processes, packages, and sells them to end users in accordance with their specific needs. Geographically, the company generates maximum revenue from Canada.
79GF Score
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