Smiths GroupSMGZY +0.67%67 Operating Margin % is 19.78% as of Jan. 2026, which is 31% above its 10-year median of 15.08. GuruFocus rates SMGZY with a GF Score™ of 67/100 and a GF Value™ of $18.40 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,038 Industrial Products companies, Smiths Group ranks better than 89.93% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Smiths Group's Operating Income for the
six
months ended in Jan. 2026 was $245 Mil. Smiths Group's Revenue for the
six
months ended in Jan. 2026 was $1,238 Mil. Therefore, Smiths Group's Operating Margin % for the quarter that ended in Jan. 2026 was 19.78%.
Good Sign:
Smiths Group PLC operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Smiths Group's Operating Margin % or its related term are showing as below:
SMGZY'
s Operating Margin % Range Over the Past 10 Years
Min: 5.92 Med: 15.08 Max: 18.97
Current: 18.75
SMGZY's Operating Margin % is ranked better than 89.93% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs SMGZY: 18.75
Smiths Group's 5-Year Average Operating Margin % Growth Rate was 15.00% per year.
Smiths Group (OTCPK:SMGZY) Operating Margin % Explanation
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.
Smiths Group Operating Margin % Related Terms
Smiths Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Smiths Group'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.
SMGZY vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Smiths Group'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.
Smiths Group Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Smiths Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Smiths Group'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.
Smiths Group's Operating Margin % for the fiscal year that ended in Jul. 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.
Smiths Group (SMGZY) has a Operating Margin % of 19.78% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Smiths Group and its competitors. This is 31% above median its historical median of 15.08. Over the past decade, Smiths Group's Operating Margin % has ranged from 5.92 to 18.97. According to the industry distribution chart, Smiths Group ranks #306 out of 3038 companies in the Industrial Products industry, placing it in the top 10.1%.
Is Smiths Group's Operating Margin % too high?
Smiths Group's current Operating Margin % of 19.78% is 31% above median its 10-year median of 15.08. Over the past 10 years, this metric has ranged from a low of 5.92 to a high of 18.97. The Industrial Products industry median Operating Margin % is 6.53. Smiths Group's value of 19.78% is 202.9% above this industry median. Based on the distribution chart, Smiths Group ranks #306 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Smiths Group has a GF Score™ of 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Smiths Group's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Smiths Group ranks #306 out of 3038 companies for Operating Margin %. This places Smiths Group in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Smiths Group's value of 19.78% is 202.9% above this benchmark. Historically, Smiths Group's own Operating Margin % has ranged from 5.92 to 18.97 over the past decade. While the company's 10-year median is 15.08 vs. the industry median of 6.53, Smiths Group 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Smiths Group's current Operating Margin % of 19.78% is 202.9% 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 Smiths Group and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Smiths Group's current Operating Margin % is 19.78%, which is 31% above median its own 10-year median of 15.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Smiths Group stock overvalued right now?
Based on GuruFocus' analysis, Smiths Group (SMGZY) is currently considered Significantly Overvalued. The stock's GF Value™ is $18.40, compared to a current price of $34.34 — trading 86.6% above its estimated fair value. The current Operating Margin % is 19.78%, which is 31% above median its 10-year median of 15.08 and 202.9% above the Industrial Products industry median of 6.53. Smiths Group's overall GF Score™ is 67/100 with 5 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 Smiths Group (SMGZY), the current Operating Margin % is 19.78% as of Jan. 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 Smiths Group (SMGZY) Overvalued in 2026?
Based on GuruFocus' analysis, Smiths Group stock appears to be overvalued.
The current stock price of $34.34 is trading 86.6% above its estimated GF Value™ of $18.40.
GuruFocus considers Smiths Group to be Significantly Overvalued.
Key valuation signals for SMGZY:
Operating Margin %: 19.78% (31% above median its 10-year median of 15.08)
GF Value™: $18.40 vs. price of $34.34 (86.6% above fair value)
Industry Position: 202.9% above the Industrial Products median (#306 of 3038)
No single metric tells the full story. See the SMGZY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Smiths Group is a UK-based industrial technology company focused on engineered solutions for fluid and energy management, following the agreed divestments of its Detection and Interconnect divisions. Its two core businesses—John Crane and Flex-Tek - serve critical infrastructure, energy, aerospace, HVAC, and industrial markets. John Crane supplies mechanical seals, filtration systems, and condition-monitoring technologies used in rotating equipment, with a high-margin, recurring aftermarket business. Flex-Tek provides specialized tubing, heating components, and ducting systems primarily for US HVAC and aerospace OEMs.
67GF Score
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