FedEx Freight Holding CoWBO:FDXH -2.12%18 Operating Margin % is 12.43% as of Nov. 2025, which is 33% below its 10-year median of 18.60. GuruFocus rates WBO:FDXH with a GF Score™ of 18/100. Among 1,007 Transportation companies, FedEx Freight Holding Co ranks better than 68.62% on this metric.
FedEx Freight Holding Co (WBO:FDXH) 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.
FedEx Freight Holding Co Operating Margin % Related Terms
FedEx Freight Holding Co Operating Margin % Historical Data
* 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.
FedEx Freight Holding Co Operating Margin % Chart
FedEx Freight Holding Co Annual Data
Trend
May23
May24
May25
Operating Margin %
18.78
18.60
15.07
FedEx Freight Holding Co Quarterly Data
May24
Nov24
May25
Nov25
Operating Margin %
0.00
15.69
14.43
12.43
WBO:FDXH vs : Operating Margin % Comparison
For the Integrated Freight & Logistics subindustry, FedEx Freight Holding Co'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.
FedEx Freight Holding Co Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, FedEx Freight Holding Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where FedEx Freight Holding Co's Operating Margin % falls into.
FedEx Freight Holding Co 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.
FedEx Freight Holding Co's Operating Margin % for the fiscal year that ended in May. 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.
FedEx Freight Holding Co (WBO:FDXH) has a Operating Margin % of 12.43% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on FedEx Freight Holding Co and its competitors. This is 33% below median its historical median of 18.60. Over the past decade, FedEx Freight Holding Co's Operating Margin % has ranged from 13.43 to 18.78. According to the industry distribution chart, FedEx Freight Holding Co ranks #316 out of 1007 companies in the Transportation industry, placing it in the top 31.4%.
Is FedEx Freight Holding Co's Operating Margin % too high?
FedEx Freight Holding Co's current Operating Margin % of 12.43% is 33% below median its 10-year median of 18.60. Over the past 10 years, this metric has ranged from a low of 13.43 to a high of 18.78. The Transportation industry median Operating Margin % is 7.36. FedEx Freight Holding Co's value of 12.43% is 68.9% above this industry median. Based on the distribution chart, FedEx Freight Holding Co ranks #316 out of 1007 companies in the Transportation industry, which is above the industry midpoint. Overall, FedEx Freight Holding Co has a GF Score™ of 18/100, reflecting its overall financial health beyond just this single metric.
How does FedEx Freight Holding Co's Operating Margin % compare to ?
According to the Transportation industry distribution chart, FedEx Freight Holding Co ranks #316 out of 1007 companies for Operating Margin %. This puts FedEx Freight Holding Co in the upper half of its industry. The industry median Operating Margin % is 7.36. FedEx Freight Holding Co's value of 12.43% is 68.9% above this benchmark. Historically, FedEx Freight Holding Co's own Operating Margin % has ranged from 13.43 to 18.78 over the past decade. While the company's 10-year median is 18.60 vs. the industry median of 7.36, FedEx Freight Holding Co 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. FedEx Freight Holding Co's current Operating Margin % of 12.43% is 68.9% 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 FedEx Freight Holding Co and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FedEx Freight Holding Co's current Operating Margin % is 12.43%, which is 33% below median its own 10-year median of 18.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FedEx Freight Holding Co stock overvalued right now?
FedEx Freight Holding Co (WBO:FDXH) has a current Operating Margin % of 12.43%. The current Operating Margin % is 12.43%, which is 33% below median its 10-year median of 18.60 and 68.9% above the Transportation industry median of 7.36. FedEx Freight Holding Co's overall GF Score™ is 18/100. 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 FedEx Freight Holding Co (WBO:FDXH), the current Operating Margin % is 12.43% as of Nov. 2025. 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.
FedEx Freight Holding Co Inc is a North America-based less-than-truckload (LTL) transportation and freight services provider. Its service offerings - including Priority, Economy, and Direct shipping services - enable customers to select transportation options based on their needs. The company operates a network of vehicles and service locations across the U.S. states, Canada, Mexico, Puerto Rico, and the U.S. Virgin Islands, providing freight transportation and logistics services. It also utilizes data-driven technology and sales operations to support its transportation network and customer services.
18GF Score
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