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.
Goodfood Market Operating Margin % Related Terms
Goodfood Market Operating Margin % Historical Data
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The historical data trend for Goodfood Market'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:FOOD vs ROL, SCI, HRB: Operating Margin % Comparison
For the Personal Services subindustry, Goodfood Market'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.
Goodfood Market Operating Margin % vs Personal Services Industry
For the Personal Services industry and Consumer Cyclical sector, Goodfood Market's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Goodfood Market'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.
Goodfood Market's Operating Margin % for the fiscal year that ended in Aug. 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.
Goodfood Market (TSX:FOOD) has a Operating Margin % of -13.01% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Goodfood Market and its competitors. According to the industry distribution chart, Goodfood Market ranks #77 out of 97 companies in the Personal Services industry, placing it in the top 79.4%.
Is Goodfood Market's Operating Margin % too high?
Goodfood Market's current Operating Margin % is -13.01%. Based on the distribution chart, Goodfood Market ranks #77 out of 97 companies in the Personal Services industry, which is in the bottom quartile relative to peers. Overall, Goodfood Market has a GF Score™ of 29/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Goodfood Market's Operating Margin % compare to ROL and SCI?
According to the Personal Services industry distribution chart, Goodfood Market ranks #77 out of 97 companies for Operating Margin %. This places Goodfood Market in the lower half of its industry. The industry median Operating Margin % is 6.55. 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 Personal Services company?
The median Operating Margin % among Personal Services companies is 6.55, based on 97 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 Goodfood Market and its competitors. For the Personal Services industry, the median Operating Margin % is 6.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Goodfood Market's current Operating Margin % is -13.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Goodfood Market stock overvalued right now?
Based on GuruFocus' analysis, Goodfood Market (TSX:FOOD) is currently considered Modestly Overvalued. The stock's GF Value™ is C$0.16, compared to a current price of C$0.19 — trading 15.6% above its estimated fair value. The current Operating Margin % is -13.01%. Goodfood Market's overall GF Score™ is 29/100 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 Goodfood Market (TSX:FOOD), the current Operating Margin % is -13.01% 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 Goodfood Market (TSX:FOOD) Overvalued in 2026?
Based on GuruFocus' analysis, Goodfood Market stock appears to be overvalued.
The current stock price of C$0.19 is trading 15.6% above its estimated GF Value™ of C$0.16.
GuruFocus considers Goodfood Market to be Modestly Overvalued.
Key valuation signals for TSX:FOOD:
Operating Margin %: -13.01%
GF Value™: C$0.16 vs. price of C$0.19 (15.6% above fair value)
No single metric tells the full story. See the TSX:FOOD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Goodfood Market Corp is an online grocery company in Canada that delivers fresh meal solutions and groceries that make it easy for members to enjoy delicious meals at home every day. The principal business activity is focused on developing and servicing the online meal kit and grocery add-on market. Goodfood members have access to products and exclusive pricing made possible by its direct-to-consumer fulfillment ecosystem that eliminates waste and retail overhead. It has a production facility and administrative offices in Montreal, with five additional facilities located in Quebec, Ontario, Alberta, and British Columbia. The company is passionate about connecting its partner farms and suppliers to its customers' kitchens while eliminating food waste and costly retail overhead.
29GF Score
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