Townsquare MediaTSQ -3.30%68 Operating Margin % is 8.22% as of Mar. 2026, which is 53% below its 10-year median of 17.53. GuruFocus rates TSQ with a GF Score™ of 68/100 and a GF Value™ of $8.54 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,023 Media - Diversified companies, Townsquare Media ranks better than 79.47% on this metric.
Townsquare Media (NYSE:TSQ) 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.
Townsquare Media Operating Margin % Related Terms
Townsquare Media Operating Margin % Historical Data
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The historical data trend for Townsquare Media'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.
TSQ vs HFUS, MCHX, TJGC: Operating Margin % Comparison
For the Advertising Agencies subindustry, Townsquare Media'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.
Townsquare Media Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Townsquare Media's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Townsquare Media'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.
Townsquare Media'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.
Townsquare Media (TSQ) has a Operating Margin % of 8.22% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Townsquare Media and its competitors. This is 53% below median its historical median of 17.53. Over the past decade, Townsquare Media's Operating Margin % has ranged from 10.75 to 19.69. According to the industry distribution chart, Townsquare Media ranks #210 out of 1023 companies in the Media - Diversified industry, placing it in the top 20.5%.
Is Townsquare Media's Operating Margin % too high?
Townsquare Media's current Operating Margin % of 8.22% is 53% below median its 10-year median of 17.53. Over the past 10 years, this metric has ranged from a low of 10.75 to a high of 19.69. The Media - Diversified industry median Operating Margin % is 2.51. Townsquare Media's value of 8.22% is 227.5% above this industry median. Based on the distribution chart, Townsquare Media ranks #210 out of 1023 companies in the Media - Diversified industry, which is in the top quartile — a strong position relative to peers. Overall, Townsquare Media has a GF Score™ of 68/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Townsquare Media's Operating Margin % compare to HFUS and MCHX?
According to the Media - Diversified industry distribution chart, Townsquare Media ranks #210 out of 1023 companies for Operating Margin %. This places Townsquare Media in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.51. Townsquare Media's value of 8.22% is 227.5% above this benchmark. Historically, Townsquare Media's own Operating Margin % has ranged from 10.75 to 19.69 over the past decade. While the company's 10-year median is 17.53 vs. the industry median of 2.51, Townsquare Media 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 Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.51, based on 1,023 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. Townsquare Media's current Operating Margin % of 8.22% is 227.5% 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 Townsquare Media and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Townsquare Media's current Operating Margin % is 8.22%, which is 53% below median its own 10-year median of 17.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Townsquare Media stock overvalued right now?
Based on GuruFocus' analysis, Townsquare Media (TSQ) is currently considered Modestly Undervalued. The stock's GF Value™ is $8.54, compared to a current price of $6.31 — trading 26.2% below its estimated fair value. The current Operating Margin % is 8.22%, which is 53% below median its 10-year median of 17.53 and 227.5% above the Media - Diversified industry median of 2.51. Townsquare Media's overall GF Score™ is 68/100 with 5 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 Townsquare Media (TSQ), the current Operating Margin % is 8.22% 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.
Is Townsquare Media (TSQ) Overvalued in 2026?
Based on GuruFocus' analysis, Townsquare Media stock appears to be undervalued.
The current stock price of $6.31 is trading 26.2% below its estimated GF Value™ of $8.54.
GuruFocus considers Townsquare Media to be Modestly Undervalued.
Key valuation signals for TSQ:
Operating Margin %: 8.22% (53% below median its 10-year median of 17.53)
GF Value™: $8.54 vs. price of $6.31 (26.2% below fair value)
Industry Position: 227.5% above the Media - Diversified median (#210 of 1023)
No single metric tells the full story. See the TSQ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Townsquare Media Inc is a radio, digital media, entertainment, and digital marketing solutions company principally focused on being the local advertising and marketing solutions platform in small and mid-sized markets across the United States. It has three segments which are Subscription Digital Marketing Solutions, Digital Advertising, and Broadcast Advertising. It earns the majority of the revenue from the Broadcasting Advertising segment, which includes its local, regional, and national advertising products and solutions delivered via terrestrial radio broadcast. Its portfolio includes local media brands such as WYRK.com, WJON.com, and NJ101.5.com, and national music brands such as XXLmag.com, TasteofCountry.com, UltimateClassicRock.com, and Loudwire.com.
68GF Score
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