Resonac HoldingsSHWDF 58 Operating Margin % is 6.98% as of Dec. 2025, which is 12% above its 10-year median of 6.21. GuruFocus rates SHWDF with a GF Score™ of 58/100 and a GF Value™ of $18.93 (Significantly Overvalued). The stock has 8 warning signs investors should review. Among 1,584 Chemicals companies, Resonac Holdings ranks worse than 62.69% 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.
Resonac Holdings Operating Margin % Related Terms
Resonac Holdings Operating Margin % Historical Data
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The historical data trend for Resonac 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.
For the Chemicals subindustry, Resonac 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.
Resonac Holdings Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Resonac Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Resonac 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.
Resonac Holdings'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.
Resonac Holdings (SHWDF) has a Operating Margin % of 6.98% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Resonac Holdings and its competitors. This is 12% above median its historical median of 6.21. According to the industry distribution chart, Resonac Holdings ranks #993 out of 1584 companies in the Chemicals industry, placing it in the top 62.7%.
Is Resonac Holdings' Operating Margin % too high?
Resonac Holdings' current Operating Margin % of 6.98% is 12% above median its 10-year median of 6.21. The Chemicals industry median Operating Margin % is 6.03. Resonac Holdings' value of 6.98% is 15.9% above this industry median. Based on the distribution chart, Resonac Holdings ranks #993 out of 1584 companies in the Chemicals industry, which is below the industry midpoint. Overall, Resonac Holdings has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Resonac Holdings' Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Resonac Holdings ranks #993 out of 1584 companies for Operating Margin %. This places Resonac Holdings in the lower half of its industry. The industry median Operating Margin % is 6.03. Resonac Holdings' value of 6.98% is 15.9% above this benchmark. While the company's 10-year median is 6.21 vs. the industry median of 6.03, Resonac Holdings 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,584 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. Resonac Holdings's current Operating Margin % of 6.98% is 15.9% 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 Resonac Holdings and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Resonac Holdings's current Operating Margin % is 6.98%, which is 12% above median its own 10-year median of 6.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Resonac Holdings stock overvalued right now?
Based on GuruFocus' analysis, Resonac Holdings (SHWDF) is currently considered Significantly Overvalued. The stock's GF Value™ is $18.93, compared to a current price of $111.70 — trading 490.1% above its estimated fair value. The current Operating Margin % is 6.98%, which is 12% above median its 10-year median of 6.21 and 15.9% above the Chemicals industry median of 6.03. Resonac Holdings' overall GF Score™ is 58/100 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 Resonac Holdings (SHWDF), the current Operating Margin % is 6.98% as of Dec. 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 Resonac Holdings (SHWDF) Overvalued in 2026?
Based on GuruFocus' analysis, Resonac Holdings stock appears to be overvalued.
The current stock price of $111.70 is trading 490.1% above its estimated GF Value™ of $18.93.
GuruFocus considers Resonac Holdings to be Significantly Overvalued.
Key valuation signals for SHWDF:
Operating Margin %: 6.98% (12% above median its 10-year median of 6.21)
GF Value™: $18.93 vs. price of $111.70 (490.1% above fair value)
Industry Position: 15.9% above the Chemicals median (#993 of 1584)
No single metric tells the full story. See the SHWDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Resonac Holdings Corp manufactures and sells chemicals, aluminum, and electronics. The company operates through five segments. The Chemical segment includes petrochemicals such as olefins and organic chemicals, industrial gases, basic chemicals, and graphite electrodes. The Innovation Materials segment covers functional chemicals, resins, coating materials, ceramics, and aluminum specialty components. The Mobility segment provides automotive products, friction materials, powder metal products, & lithium-ion battery materials. Semiconductors and Electronic Materials segment includes front-end and back-end semiconductor materials, as well as device solutions like hard disk media and compound semiconductors. The Others segment covers energy storage devices, systems, and life science products.
58GF Score
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