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.
Recursion Pharmaceuticals Operating Margin % Related Terms
Recursion Pharmaceuticals Operating Margin % Historical Data
* 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.
RXRX vs ABSI, GLUE, ANAB: Operating Margin % Comparison
For the Biotechnology subindustry, Recursion Pharmaceuticals'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.
Recursion Pharmaceuticals Operating Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Recursion Pharmaceuticals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Recursion Pharmaceuticals'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.
Recursion Pharmaceuticals'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.
What does a Operating Margin % of -2,039.44% mean?
Recursion Pharmaceuticals (RXRX) has a Operating Margin % of -2,039.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Recursion Pharmaceuticals and its competitors. According to the industry distribution chart, Recursion Pharmaceuticals ranks #730 out of 939 companies in the Biotechnology industry, placing it in the top 77.7%.
Is Recursion Pharmaceuticals' Operating Margin % too high?
Recursion Pharmaceuticals' current Operating Margin % is -2,039.44%. Based on the distribution chart, Recursion Pharmaceuticals ranks #730 out of 939 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Recursion Pharmaceuticals has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Recursion Pharmaceuticals' Operating Margin % compare to ABSI and GLUE?
According to the Biotechnology industry distribution chart, Recursion Pharmaceuticals ranks #730 out of 939 companies for Operating Margin %. This places Recursion Pharmaceuticals in the lower half of its industry. 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 Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 Recursion Pharmaceuticals and its competitors. Recursion Pharmaceuticals's current Operating Margin % is -2,039.44%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Recursion Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Recursion Pharmaceuticals (RXRX) is currently considered Fairly Valued. The stock's GF Value™ is $4.14, compared to a current price of $3.82 — trading 7.9% below its estimated fair value. The current Operating Margin % is -2,039.44%. Recursion Pharmaceuticals' overall GF Score™ is 77/100 with 4 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 Recursion Pharmaceuticals (RXRX), the current Operating Margin % is -2,039.44% 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 Recursion Pharmaceuticals (RXRX) Overvalued in 2026?
Based on GuruFocus' analysis, Recursion Pharmaceuticals stock appears to be undervalued.
The current stock price of $3.82 is trading 7.9% below its estimated GF Value™ of $4.14.
GuruFocus considers Recursion Pharmaceuticals to be Fairly Valued.
Key valuation signals for RXRX:
Operating Margin %: -2,039.44%
GF Value™: $4.14 vs. price of $3.82 (7.9% below fair value)
No single metric tells the full story. See the RXRX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Recursion Pharmaceuticals Inc is a clinical-stage biotechnology company. The company is decoding biology by integrating technological innovations across biology, chemistry, automation, data science, and engineering, with the goal of radically improving the lives of patients and industrializing drug discovery. Geographically, the company operates in United States, United Kingdom, and Others. It derives maximum revenue from United States.
77GF 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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