TPI CompositesTPICQ -4.49% Operating Margin % is -14.29% as of Dec. 2025. The stock has 7 warning signs investors should review. Among 3,038 Industrial Products companies, TPI Composites ranks worse than 88.84% 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.
TPI Composites Operating Margin % Related Terms
TPI Composites Operating Margin % Historical Data
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The historical data trend for TPI Composites'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.
TPICQ vs EXROF, OZSC, ADNH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, TPI Composites'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.
TPI Composites Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, TPI Composites's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TPI Composites'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.
TPI Composites'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.
TPI Composites (TPICQ) has a Operating Margin % of -14.29% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on TPI Composites and its competitors. According to the industry distribution chart, TPI Composites ranks #2699 out of 3038 companies in the Industrial Products industry, placing it in the top 88.8%.
Is TPI Composites' Operating Margin % too high?
TPI Composites' current Operating Margin % is -14.29%. Based on the distribution chart, TPI Composites ranks #2699 out of 3038 companies in the Industrial Products industry, which is in the bottom quartile relative to peers.
How does TPI Composites' Operating Margin % compare to EXROF and OZSC?
According to the Industrial Products industry distribution chart, TPI Composites ranks #2699 out of 3038 companies for Operating Margin %. This places TPI Composites in the lower half of its industry. The industry median Operating Margin % is 6.53. 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. 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 TPI Composites 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. TPI Composites's current Operating Margin % is -14.29%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TPI Composites stock overvalued right now?
Based on GuruFocus' analysis, TPI Composites (TPICQ) is currently considered Possible Value Trap. The stock's GF Value™ is $3.05, compared to a current price of $0.01 — trading 99.8% below its estimated fair value. The current Operating Margin % is -14.29%. 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 TPI Composites (TPICQ), the current Operating Margin % is -14.29% 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.
TPI Composites Inc is engaged in manufacturing composite wind blades. The company operates in wind energy and transportation industries where it manufactures structures for a bus, rail, theme parks, and trucks. Geographically the segments are divided into the U.S, Asia, Mexico, EMEA and India where the Mexico segment derives a majority of revenue.
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