US Physical TherapyUSPH +4.27%77 Operating Margin % is 7.30% as of Mar. 2026, which is 45% below its 10-year median of 13.26. GuruFocus rates USPH with a GF Score™ of 77/100 and a GF Value™ of $107.60 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 668 Healthcare Providers & Services companies, US Physical Therapy ranks better than 70.51% on this metric.
US Physical Therapy Inc operating margin has been in a 5-year decline. The average rate of decline per year is -9.3%.
The historical rank and industry rank for US Physical Therapy's Operating Margin % or its related term are showing as below:
USPH'
s Operating Margin % Range Over the Past 10 Years
Min: 9.78 Med: 13.26 Max: 15.58
Current: 10.07
USPH's Operating Margin % is ranked better than 70.51% of 668
companies
in the Healthcare Providers & Services industry
Industry Median: 4.845
vs USPH: 10.07
US Physical Therapy's 5-Year Average Operating Margin % Growth Rate was -9.30% per year.
US Physical Therapy (NYSE:USPH) 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 Physical Therapy Operating Margin % Related Terms
US Physical Therapy Operating Margin % Historical Data
* Premium members only.
The historical data trend for US Physical Therapy'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.
USPH vs INNV, NUTX, AMN: Operating Margin % Comparison
For the Medical Care Facilities subindustry, US Physical Therapy'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 Physical Therapy Operating Margin % vs Healthcare Providers & Services Industry
For the Healthcare Providers & Services industry and Healthcare sector, US Physical Therapy's Operating Margin % distribution charts can be found below:
* The bar in red indicates where US Physical Therapy's Operating Margin % falls into.
US Physical Therapy 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.
US Physical Therapy'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 Physical Therapy (USPH) has a Operating Margin % of 7.30% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on US Physical Therapy and its competitors. This is 45% below median its historical median of 13.26. Over the past decade, US Physical Therapy's Operating Margin % has ranged from 9.78 to 15.58. According to the industry distribution chart, US Physical Therapy ranks #197 out of 668 companies in the Healthcare Providers & Services industry, placing it in the top 29.5%.
Is US Physical Therapy's Operating Margin % too high?
US Physical Therapy's current Operating Margin % of 7.30% is 45% below median its 10-year median of 13.26. Over the past 10 years, this metric has ranged from a low of 9.78 to a high of 15.58. The Healthcare Providers & Services industry median Operating Margin % is 4.85. US Physical Therapy's value of 7.30% is 50.7% above this industry median. Based on the distribution chart, US Physical Therapy ranks #197 out of 668 companies in the Healthcare Providers & Services industry, which is above the industry midpoint. Overall, US Physical Therapy has a GF Score™ of 77/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does US Physical Therapy's Operating Margin % compare to INNV and NUTX?
According to the Healthcare Providers & Services industry distribution chart, US Physical Therapy ranks #197 out of 668 companies for Operating Margin %. This puts US Physical Therapy in the upper half of its industry. The industry median Operating Margin % is 4.85. US Physical Therapy's value of 7.30% is 50.7% above this benchmark. Historically, US Physical Therapy's own Operating Margin % has ranged from 9.78 to 15.58 over the past decade. While the company's 10-year median is 13.26 vs. the industry median of 4.85, US Physical Therapy 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 Healthcare Providers & Services company?
The median Operating Margin % among Healthcare Providers & Services companies is 4.85, based on 668 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 Physical Therapy's current Operating Margin % of 7.30% is 50.7% 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 US Physical Therapy and its competitors. For the Healthcare Providers & Services industry, the median Operating Margin % is 4.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. US Physical Therapy's current Operating Margin % is 7.30%, which is 45% below median its own 10-year median of 13.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is US Physical Therapy stock overvalued right now?
Based on GuruFocus' analysis, US Physical Therapy (USPH) is currently considered Significantly Undervalued. The stock's GF Value™ is $107.60, compared to a current price of $66.21 — trading 38.5% below its estimated fair value. The current Operating Margin % is 7.30%, which is 45% below median its 10-year median of 13.26 and 50.7% above the Healthcare Providers & Services industry median of 4.85. US Physical Therapy's overall GF Score™ is 77/100 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 Physical Therapy (USPH), the current Operating Margin % is 7.30% 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 Physical Therapy (USPH) Overvalued in 2026?
Based on GuruFocus' analysis, US Physical Therapy stock appears to be undervalued.
The current stock price of $66.21 is trading 38.5% below its estimated GF Value™ of $107.60.
GuruFocus considers US Physical Therapy to be Significantly Undervalued.
Key valuation signals for USPH:
Operating Margin %: 7.30% (45% below median its 10-year median of 13.26)
GF Value™: $107.60 vs. price of $66.21 (38.5% below fair value)
Industry Position: 50.7% above the Healthcare Providers & Services median (#197 of 668)
No single metric tells the full story. See the USPH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
US Physical Therapy Inc through its subsidiaries operate outpatient physical therapy clinics that provide pre-and post-operative care and treatment for orthopedic-related disorders, sports-related injuries, preventative care, rehabilitation of injured workers, and neurological-related injuries. The principal payment sources for the clinics' services are managed care programs, commercial health insurance, Medicare/Medicaid, workers' compensation insurance, and proceeds from personal injury cases. Its operating segment includes Physical therapy operations and Industrial injury prevention services. The company generates maximum revenue from the Physical therapy operations segment.
77GF Score
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