US Foods HoldingUSFD +0.91%81 Operating Margin % is 2.33% as of Mar. 2026, which is 9% below its 10-year median of 2.56. GuruFocus rates USFD with a GF Score™ of 81/100 and a GF Value™ of $73.91 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 310 Retail - Defensive companies, US Foods Holding ranks worse than 53.23% on this metric.
US Foods Holding (NYSE:USFD) 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.
US Foods Holding Operating Margin % Related Terms
US Foods Holding Operating Margin % Historical Data
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The historical data trend for US Foods Holding'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.
USFD vs PFGC, CHEF, UNFI: Operating Margin % Comparison
For the Food Distribution subindustry, US Foods Holding'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.
US Foods Holding Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, US Foods Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where US Foods Holding'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.
US Foods Holding'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.
US Foods Holding (USFD) has a Operating Margin % of 2.33% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on US Foods Holding and its competitors. This is near median its historical median of 2.56. According to the industry distribution chart, US Foods Holding ranks #165 out of 310 companies in the Retail - Defensive industry, placing it in the top 53.2%.
Is US Foods Holding's Operating Margin % too high?
US Foods Holding's current Operating Margin % of 2.33% is near median its 10-year median of 2.56. The Retail - Defensive industry median Operating Margin % is 3.28. US Foods Holding's value of 2.33% is 28.9% below this industry median. Based on the distribution chart, US Foods Holding ranks #165 out of 310 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, US Foods Holding has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does US Foods Holding's Operating Margin % compare to PFGC and CHEF?
According to the Retail - Defensive industry distribution chart, US Foods Holding ranks #165 out of 310 companies for Operating Margin %. This places US Foods Holding in the lower half of its industry. The industry median Operating Margin % is 3.28. US Foods Holding's value of 2.33% is 28.9% below this benchmark. While the company's 10-year median is 2.56 vs. the industry median of 3.28, US Foods Holding has consistently been below 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 Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 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. US Foods Holding's current Operating Margin % of 2.33% is 28.9% below 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 US Foods Holding and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. US Foods Holding's current Operating Margin % is 2.33%, which is near median its own 10-year median of 2.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is US Foods Holding stock overvalued right now?
Based on GuruFocus' analysis, US Foods Holding (USFD) is currently considered Modestly Overvalued. The stock's GF Value™ is $73.91, compared to a current price of $96.22 — trading 30.2% above its estimated fair value. The current Operating Margin % is 2.33%, which is near median its 10-year median of 2.56 and 28.9% below the Retail - Defensive industry median of 3.28. US Foods Holding's overall GF Score™ is 81/100 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 US Foods Holding (USFD), the current Operating Margin % is 2.33% 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 US Foods Holding (USFD) Overvalued in 2026?
Based on GuruFocus' analysis, US Foods Holding stock appears to be overvalued.
The current stock price of $96.22 is trading 30.2% above its estimated GF Value™ of $73.91.
GuruFocus considers US Foods Holding to be Modestly Overvalued.
Key valuation signals for USFD:
Operating Margin %: 2.33% (near median its 10-year median of 2.56)
GF Value™: $73.91 vs. price of $96.22 (30.2% above fair value)
Industry Position: 28.9% below the Retail - Defensive median (#165 of 310)
No single metric tells the full story. See the USFD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
US Foods Holding Corp is a U.S. food service distributor that distributes food and nonfood products to the healthcare and hospitality industries, restaurants, education, government facilities, and grocers. It has various customer locations across the United States, with a vast network of distribution facilities, a fleet of trucks, and cash and carry locations offering food and non-food products, and a comprehensive suite of e-commerce, technology, and business solutions to its customers. The company operates in one business segment in which it markets, sells, and distributes fresh, frozen, and dry food and non-food products to foodservice customers throughout the U.S. The products offered are as snacks, beverages, fresh produce, sauces, condiments, canned/frozen fruits and others.
81GF Score
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