Solstice Advanced MaterialsSOLS +2.35%19 Operating Margin % is 18.25% as of Mar. 2026, which is 18% below its 10-year median of 22.31. GuruFocus rates SOLS with a GF Score™ of 19/100. The stock has 6 warning signs investors should review. Among 1,584 Chemicals companies, Solstice Advanced Materials ranks better than 87.31% 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.
Solstice Advanced Materials Operating Margin % Related Terms
Solstice Advanced Materials 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.
SOLS vs RPM, WLK, ESI: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Solstice Advanced Materials'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.
Solstice Advanced Materials Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Solstice Advanced Materials's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Solstice Advanced Materials'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.
Solstice Advanced Materials'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.
Solstice Advanced Materials (SOLS) has a Operating Margin % of 18.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Solstice Advanced Materials and its competitors. This is 18% below median its historical median of 22.31. Over the past decade, Solstice Advanced Materials' Operating Margin % has ranged from 17.23 to 26.96. According to the industry distribution chart, Solstice Advanced Materials ranks #201 out of 1584 companies in the Chemicals industry, placing it in the top 12.7%.
Is Solstice Advanced Materials' Operating Margin % too high?
Solstice Advanced Materials' current Operating Margin % of 18.25% is 18% below median its 10-year median of 22.31. Over the past 10 years, this metric has ranged from a low of 17.23 to a high of 26.96. The Chemicals industry median Operating Margin % is 6.03. Solstice Advanced Materials' value of 18.25% is 202.9% above this industry median. Based on the distribution chart, Solstice Advanced Materials ranks #201 out of 1584 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Solstice Advanced Materials has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does Solstice Advanced Materials' Operating Margin % compare to RPM and WLK?
According to the Chemicals industry distribution chart, Solstice Advanced Materials ranks #201 out of 1584 companies for Operating Margin %. This places Solstice Advanced Materials in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Solstice Advanced Materials' value of 18.25% is 202.9% above this benchmark. Historically, Solstice Advanced Materials' own Operating Margin % has ranged from 17.23 to 26.96 over the past decade. While the company's 10-year median is 22.31 vs. the industry median of 6.03, Solstice Advanced Materials 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. Solstice Advanced Materials's current Operating Margin % of 18.25% 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 Solstice Advanced Materials 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. Solstice Advanced Materials's current Operating Margin % is 18.25%, which is 18% below median its own 10-year median of 22.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solstice Advanced Materials stock overvalued right now?
Solstice Advanced Materials (SOLS) has a current Operating Margin % of 18.25%. The current Operating Margin % is 18.25%, which is 18% below median its 10-year median of 22.31 and 202.9% above the Chemicals industry median of 6.03. Solstice Advanced Materials' overall GF Score™ is 19/100 with 6 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 Solstice Advanced Materials (SOLS), the current Operating Margin % is 18.25% 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.
Solstice Advanced Materials is a diversified specialty chemicals company created in late 2025 after being spun off from Honeywell. It sells chemicals and materials to a wide range of end markets. Its largest product category is refrigerants used in heating, ventilation and air conditioning systems, and autos, where Solstice sells low global warming potential refrigerants. The company also sells materials used for building and construction, semiconductor production, healthcare packaging, and defense. Additionally, Solstice runs the only US uranium conversion business currently in operation.
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