First Quantum MineralsTSX:FM +1.88%75 Operating Margin % is 13.53% as of Mar. 2026, which is 34% below its 10-year median of 20.61. GuruFocus rates TSX:FM with a GF Score™ of 75/100 and a GF Value™ of C$22.23 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 841 Metals & Mining companies, First Quantum Minerals ranks better than 69.8% on this metric.
First Quantum Minerals (TSX:FM) 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.
First Quantum Minerals Operating Margin % Related Terms
First Quantum Minerals Operating Margin % Historical Data
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The historical data trend for First Quantum Minerals'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.
TSX:FM vs SCCO, FCX: Operating Margin % Comparison
For the Copper subindustry, First Quantum Minerals'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.
First Quantum Minerals Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, First Quantum Minerals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where First Quantum Minerals's Operating Margin % falls into.
First Quantum Minerals Operating Margin % Calculation
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.
First Quantum Minerals'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.
First Quantum Minerals (TSX:FM) has a Operating Margin % of 13.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on First Quantum Minerals and its competitors. This is 34% below median its historical median of 20.61. Over the past decade, First Quantum Minerals' Operating Margin % has ranged from 6.83 to 33.14. According to the industry distribution chart, First Quantum Minerals ranks #254 out of 841 companies in the Metals & Mining industry, placing it in the top 30.2%.
Is First Quantum Minerals' Operating Margin % too high?
First Quantum Minerals' current Operating Margin % of 13.53% is 34% below median its 10-year median of 20.61. Over the past 10 years, this metric has ranged from a low of 6.83 to a high of 33.14. The Metals & Mining industry median Operating Margin % is 5.79. First Quantum Minerals' value of 13.53% is 133.7% above this industry median. Based on the distribution chart, First Quantum Minerals ranks #254 out of 841 companies in the Metals & Mining industry, which is above the industry midpoint. Overall, First Quantum Minerals has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Quantum Minerals' Operating Margin % compare to SCCO and FCX?
According to the Metals & Mining industry distribution chart, First Quantum Minerals ranks #254 out of 841 companies for Operating Margin %. This puts First Quantum Minerals in the upper half of its industry. The industry median Operating Margin % is 5.79. First Quantum Minerals' value of 13.53% is 133.7% above this benchmark. Historically, First Quantum Minerals' own Operating Margin % has ranged from 6.83 to 33.14 over the past decade. While the company's 10-year median is 20.61 vs. the industry median of 5.79, First Quantum Minerals 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 Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.79, based on 841 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. First Quantum Minerals's current Operating Margin % of 13.53% is 133.7% 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 First Quantum Minerals and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Quantum Minerals's current Operating Margin % is 13.53%, which is 34% below median its own 10-year median of 20.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Quantum Minerals stock overvalued right now?
Based on GuruFocus' analysis, First Quantum Minerals (TSX:FM) is currently considered Significantly Overvalued. The stock's GF Value™ is C$22.23, compared to a current price of C$37.44 — trading 68.4% above its estimated fair value. The current Operating Margin % is 13.53%, which is 34% below median its 10-year median of 20.61 and 133.7% above the Metals & Mining industry median of 5.79. First Quantum Minerals' overall GF Score™ is 75/100 with 3 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 First Quantum Minerals (TSX:FM), the current Operating Margin % is 13.53% 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 First Quantum Minerals (TSX:FM) Overvalued in 2026?
Based on GuruFocus' analysis, First Quantum Minerals stock appears to be overvalued.
The current stock price of C$37.44 is trading 68.4% above its estimated GF Value™ of C$22.23.
GuruFocus considers First Quantum Minerals to be Significantly Overvalued.
Key valuation signals for TSX:FM:
Operating Margin %: 13.53% (34% below median its 10-year median of 20.61)
GF Value™: C$22.23 vs. price of C$37.44 (68.4% above fair value)
Industry Position: 133.7% above the Metals & Mining median (#254 of 841)
No single metric tells the full story. See the TSX:FM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Quantum Minerals Ltd is a diversified mining company. The company's principal activities include mineral exploration, mine engineering and construction, and development and mining operations. The firm produces copper in concentrate, copper anode, copper cathode, nickel, gold, zinc, silver, acid, and pyrite. It has operating mines located in Zambia, Panama, Turkey, Spain, Australia, and Mauritania. The company's reportable operating segments are Cobre Panama, Kansanshi, and Trident.
75GF Score
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