Reliance WorldwideSTU:0EU -3.64%86 Operating Margin % is 5.96% as of Dec. 2025, which is 52% below its 10-year median of 12.31. GuruFocus rates STU:0EU with a GF Score™ of 86/100 and a GF Value™ of €2.66 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 1,767 Construction companies, Reliance Worldwide ranks better than 61.4% 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.
Reliance Worldwide Operating Margin % Related Terms
Reliance Worldwide Operating Margin % Historical Data
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The historical data trend for Reliance Worldwide'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.
STU:0EU vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Reliance Worldwide'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.
Reliance Worldwide Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Reliance Worldwide's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Reliance Worldwide'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.
Reliance Worldwide's Operating Margin % for the fiscal year that ended in Jun. 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.
Reliance Worldwide (STU:0EU) has a Operating Margin % of 5.96% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Reliance Worldwide and its competitors. This is 52% below median its historical median of 12.31. Over the past decade, Reliance Worldwide's Operating Margin % has ranged from 7.95 to 17.48. According to the industry distribution chart, Reliance Worldwide ranks #682 out of 1767 companies in the Construction industry, placing it in the top 38.6%.
Is Reliance Worldwide's Operating Margin % too high?
Reliance Worldwide's current Operating Margin % of 5.96% is 52% below median its 10-year median of 12.31. Over the past 10 years, this metric has ranged from a low of 7.95 to a high of 17.48. The Construction industry median Operating Margin % is 5.89. Reliance Worldwide's value of 5.96% is 1.2% above this industry median. Based on the distribution chart, Reliance Worldwide ranks #682 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Reliance Worldwide has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reliance Worldwide's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Reliance Worldwide ranks #682 out of 1767 companies for Operating Margin %. This puts Reliance Worldwide in the upper half of its industry. The industry median Operating Margin % is 5.89. Reliance Worldwide's value of 5.96% is 1.2% above this benchmark. Historically, Reliance Worldwide's own Operating Margin % has ranged from 7.95 to 17.48 over the past decade. While the company's 10-year median is 12.31 vs. the industry median of 5.89, Reliance Worldwide 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Reliance Worldwide's current Operating Margin % of 5.96% is 1.2% 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 Reliance Worldwide and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliance Worldwide's current Operating Margin % is 5.96%, which is 52% below median its own 10-year median of 12.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Reliance Worldwide (STU:0EU) is currently considered Modestly Undervalued. The stock's GF Value™ is €2.66, compared to a current price of €2.12 — trading 20.3% below its estimated fair value. The current Operating Margin % is 5.96%, which is 52% below median its 10-year median of 12.31 and 1.2% above the Construction industry median of 5.89. Reliance Worldwide's overall GF Score™ is 86/100 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 Reliance Worldwide (STU:0EU), the current Operating Margin % is 5.96% 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 Reliance Worldwide (STU:0EU) Overvalued in 2026?
Based on GuruFocus' analysis, Reliance Worldwide stock appears to be undervalued.
The current stock price of €2.12 is trading 20.3% below its estimated GF Value™ of €2.66.
GuruFocus considers Reliance Worldwide to be Modestly Undervalued.
Key valuation signals for STU:0EU:
Operating Margin %: 5.96% (52% below median its 10-year median of 12.31)
GF Value™: €2.66 vs. price of €2.12 (20.3% below fair value)
Industry Position: 1.2% above the Construction median (#682 of 1767)
No single metric tells the full story. See the STU:0EU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliance manufactures behind-the-wall plumbing products, which include fittings, pipes, valves, fluid dispensers, pipe systems, and appliance connectors. Its main segment is the US, which comprises about two-thirds of our midcycle EBITDA estimates. Other segments include EMEA and the Asia-Pacific, which contribute about 15% and 20%, respectively, of our midcycle EBITDA estimates. The firm is best known for its push-to-connect products, including the brands SharkBite in the US and John Guest in the United Kingdom. Reliance's primary target segment is the do-it-yourself market. Smaller sales segments include residential and commercial construction, and hot water system manufacturers, which use some Reliance products in manufacturing.
86GF Score
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