Taylor DevicesTAYD -0.21%92 Operating Margin % is 20.73% as of Feb. 2026, which is 80% above its 10-year median of 11.54. GuruFocus rates TAYD with a GF Score™ of 92/100 and a GF Value™ of $46.25 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 3,038 Industrial Products companies, Taylor Devices ranks better than 93.68% on this metric.
Taylor Devices (NAS:TAYD) 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.
Taylor Devices Operating Margin % Related Terms
Taylor Devices Operating Margin % Historical Data
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The historical data trend for Taylor Devices'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.
TAYD vs NPWR, ZJK, HURC: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Taylor Devices'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.
Taylor Devices Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Taylor Devices's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taylor Devices'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.
Taylor Devices's Operating Margin % for the fiscal year that ended in May. 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.
Taylor Devices (TAYD) has a Operating Margin % of 20.73% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Taylor Devices and its competitors. This is 80% above median its historical median of 11.54. According to the industry distribution chart, Taylor Devices ranks #192 out of 3038 companies in the Industrial Products industry, placing it in the top 6.3%.
Is Taylor Devices' Operating Margin % too high?
Taylor Devices' current Operating Margin % of 20.73% is 80% above median its 10-year median of 11.54. The Industrial Products industry median Operating Margin % is 6.53. Taylor Devices' value of 20.73% is 217.5% above this industry median. Based on the distribution chart, Taylor Devices ranks #192 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Taylor Devices has a GF Score™ of 92/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taylor Devices' Operating Margin % compare to NPWR and ZJK?
According to the Industrial Products industry distribution chart, Taylor Devices ranks #192 out of 3038 companies for Operating Margin %. This places Taylor Devices in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Taylor Devices' value of 20.73% is 217.5% above this benchmark. While the company's 10-year median is 11.54 vs. the industry median of 6.53, Taylor Devices 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. Taylor Devices's current Operating Margin % of 20.73% is 217.5% 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 Taylor Devices 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. Taylor Devices's current Operating Margin % is 20.73%, which is 80% above median its own 10-year median of 11.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taylor Devices stock overvalued right now?
Based on GuruFocus' analysis, Taylor Devices (TAYD) is currently considered Modestly Overvalued. The stock's GF Value™ is $46.25, compared to a current price of $58.61 — trading 26.7% above its estimated fair value. The current Operating Margin % is 20.73%, which is 80% above median its 10-year median of 11.54 and 217.5% above the Industrial Products industry median of 6.53. Taylor Devices' overall GF Score™ is 92/100 with 1 warning sign 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 Taylor Devices (TAYD), the current Operating Margin % is 20.73% as of Feb. 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 Taylor Devices (TAYD) Overvalued in 2026?
Based on GuruFocus' analysis, Taylor Devices stock appears to be overvalued.
The current stock price of $58.61 is trading 26.7% above its estimated GF Value™ of $46.25.
GuruFocus considers Taylor Devices to be Modestly Overvalued.
Key valuation signals for TAYD:
Operating Margin %: 20.73% (80% above median its 10-year median of 11.54)
GF Value™: $46.25 vs. price of $58.61 (26.7% above fair value)
Industry Position: 217.5% above the Industrial Products median (#192 of 3038)
No single metric tells the full story. See the TAYD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taylor Devices Inc is involved in the design, development, manufacture, and marketing of shock absorption, rate control, and energy storage devices for use in various types of machinery, equipment, and structures. The company's product line includes Seismic dampers, Fluidicshoks, Crane and industrial buffers, Self-adjusting shock absorbers, Liquid die springs, and Vibration Dampers. Its products are generally used to absorb, control, or mitigate the motion of masses caused by earthquakes or explosions. The company markets its products to various industries such as industrial, steel mills, buildings, bridges, aerospace, defense, and automotive industries.
92GF Score
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