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.
Ryanair Holdings Operating Margin % Related Terms
Ryanair Holdings Operating Margin % Historical Data
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The historical data trend for Ryanair Holdings'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.
RYAAY vs DAL, UAL, LUV: Operating Margin % Comparison
For the Airlines subindustry, Ryanair Holdings'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.
Ryanair Holdings Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Ryanair Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ryanair Holdings'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.
Ryanair Holdings's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Ryanair Holdings (RYAAY) has a Operating Margin % of -23.46% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ryanair Holdings and its competitors. According to the industry distribution chart, Ryanair Holdings ranks #275 out of 1007 companies in the Transportation industry, placing it in the top 27.3%.
Is Ryanair Holdings' Operating Margin % too high?
Ryanair Holdings' current Operating Margin % is -23.46%. Based on the distribution chart, Ryanair Holdings ranks #275 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, Ryanair Holdings has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ryanair Holdings' Operating Margin % compare to DAL and UAL?
According to the Transportation industry distribution chart, Ryanair Holdings ranks #275 out of 1007 companies for Operating Margin %. This puts Ryanair Holdings in the upper half of its industry. The industry median Operating Margin % is 7.37. 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.37, based on 1,007 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. 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 Ryanair Holdings and its competitors. For the Transportation industry, the median Operating Margin % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ryanair Holdings's current Operating Margin % is -23.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ryanair Holdings stock overvalued right now?
Based on GuruFocus' analysis, Ryanair Holdings (RYAAY) is currently considered Fairly Valued. The stock's GF Value™ is $59.55, compared to a current price of $63.77 — trading 7.1% above its estimated fair value. The current Operating Margin % is -23.46%. Ryanair Holdings' overall GF Score™ is 84/100 with 1 warning sign 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 Ryanair Holdings (RYAAY), the current Operating Margin % is -23.46% 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 Ryanair Holdings (RYAAY) Overvalued in 2026?
Based on GuruFocus' analysis, Ryanair Holdings stock appears to be overvalued.
The current stock price of $63.77 is trading 7.1% above its estimated GF Value™ of $59.55.
GuruFocus considers Ryanair Holdings to be Fairly Valued.
Key valuation signals for RYAAY:
Operating Margin %: -23.46%
GF Value™: $59.55 vs. price of $63.77 (7.1% above fair value)
No single metric tells the full story. See the RYAAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ryanair is Europe's largest low-cost airline, known for its extensive network and highly efficient business model. Operating over 3,600 flights daily across 240-plus destinations in 40 countries, Ryanair has built its success on offering affordable air travel while maintaining tight control over costs. The airline primarily uses Boeing 737 aircraft, including the newer 737 8-200 "Gamechanger" variant, which simplifies operations and reduces expenses. Ryanair focuses on high passenger volume, ancillary revenue, and operational efficiency, ensuring its position as a leading airline in Europe.
84GF Score
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