Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Sandoz Group AGSTU:D8Y -0.85%39 Operating Margin % is 4.25% as of Jun. 2026, which is 49% below its 10-year median of 8.27. GuruFocus rates STU:D8Y with a GF Score™ of 39/100 and a GF Value™ of €51.27 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 958 Drug Manufacturers companies, Sandoz Group AG ranks better than 54.38% on this metric.
Sandoz Group AG (STU:D8Y) 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.
Sandoz Group AG Operating Margin % Related Terms
Sandoz Group AG Operating Margin % Historical Data
* Premium members only.
The historical data trend for Sandoz Group AG'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:D8Y vs ZTS, UTHR, VTRS: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Sandoz Group AG'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.
Sandoz Group AG Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sandoz Group AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sandoz Group AG'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.
Sandoz Group AG'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.
Sandoz Group AG (STU:D8Y) has a Operating Margin % of 4.25% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Sandoz Group AG and its competitors. This is 49% below median its historical median of 8.27. Over the past decade, Sandoz Group AG's Operating Margin % has ranged from 2.96 to 13.31. According to the industry distribution chart, Sandoz Group AG ranks #437 out of 958 companies in the Drug Manufacturers industry, placing it in the top 45.6%.
Is Sandoz Group AG's Operating Margin % too high?
Sandoz Group AG's current Operating Margin % of 4.25% is 49% below median its 10-year median of 8.27. Over the past 10 years, this metric has ranged from a low of 2.96 to a high of 13.31. The Drug Manufacturers industry median Operating Margin % is 7.28. Sandoz Group AG's value of 4.25% is 41.6% below this industry median. Based on the distribution chart, Sandoz Group AG ranks #437 out of 958 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Sandoz Group AG has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sandoz Group AG's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Sandoz Group AG ranks #437 out of 958 companies for Operating Margin %. This puts Sandoz Group AG in the upper half of its industry. The industry median Operating Margin % is 7.28. Sandoz Group AG's value of 4.25% is 41.6% below this benchmark. Historically, Sandoz Group AG's own Operating Margin % has ranged from 2.96 to 13.31 over the past decade. While the company's 10-year median is 8.27 vs. the industry median of 7.28, Sandoz Group AG has consistently been below 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.28, based on 958 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. Sandoz Group AG's current Operating Margin % of 4.25% is 41.6% below 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 Sandoz Group AG and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sandoz Group AG's current Operating Margin % is 4.25%, which is 49% below median its own 10-year median of 8.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sandoz Group AG stock overvalued right now?
Based on GuruFocus' analysis, Sandoz Group AG (STU:D8Y) is currently considered Significantly Overvalued. The stock's GF Value™ is €51.27, compared to a current price of €77.16 — trading 50.5% above its estimated fair value. The current Operating Margin % is 4.25%, which is 49% below median its 10-year median of 8.27 and 41.6% below the Drug Manufacturers industry median of 7.28. Sandoz Group AG's overall GF Score™ is 39/100 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 Sandoz Group AG (STU:D8Y), the current Operating Margin % is 4.25% as of Jun. 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 Sandoz Group AG (STU:D8Y) Overvalued in 2026?
Based on GuruFocus' analysis, Sandoz Group AG stock appears to be overvalued.
The current stock price of €77.16 is trading 50.5% above its estimated GF Value™ of €51.27.
GuruFocus considers Sandoz Group AG to be Significantly Overvalued.
Key valuation signals for STU:D8Y:
Operating Margin %: 4.25% (49% below median its 10-year median of 8.27)
GF Value™: €51.27 vs. price of €77.16 (50.5% above fair value)
Industry Position: 41.6% below the Drug Manufacturers median (#437 of 958)
No single metric tells the full story. See the STU:D8Y stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sandoz is one of the largest generic pharmaceutical manufacturers in the world, generating over $11 billion annually from off-patent drugs. Once part of Novartis, Sandoz spun off and went public in October 2023. Generics, including small molecules and complex injectables, make up roughly 75% of Sandoz's total sales, and the firm has a significant presence in Europe, the United States, and other key international markets. Sandoz generates its remaining sales from biosimilars and is among the leaders in the space. Sandoz launched Europe's first biosimilar, Omnitrope, in 2006, as well as the first US biosimilar, Zarxio, in 2015. It has over 10 launched biosimilars in a number of markets and over 20 assets in its pipeline.
39GF Score
Get the complete analysis for STU:D8Y
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:D8Y has been successfully added to your 
