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.
Xeris Biopharma Holdings Operating Margin % Related Terms
Xeris Biopharma Holdings 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.
XERS vs ALVO, COLL, PCRX: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Xeris Biopharma Holdings'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.
Xeris Biopharma Holdings Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Xeris Biopharma Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Xeris Biopharma Holdings'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.
Xeris Biopharma Holdings'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.
Xeris Biopharma Holdings (XERS) has a Operating Margin % of 9.52% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Xeris Biopharma Holdings and its competitors. According to the industry distribution chart, Xeris Biopharma Holdings ranks #387 out of 955 companies in the Drug Manufacturers industry, placing it in the top 40.5%.
Is Xeris Biopharma Holdings' Operating Margin % too high?
Xeris Biopharma Holdings' current Operating Margin % is 9.52%. The Drug Manufacturers industry median Operating Margin % is 7.45. Xeris Biopharma Holdings' value of 9.52% is 27.8% above this industry median. Based on the distribution chart, Xeris Biopharma Holdings ranks #387 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Xeris Biopharma Holdings has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Xeris Biopharma Holdings' Operating Margin % compare to ALVO and COLL?
According to the Drug Manufacturers industry distribution chart, Xeris Biopharma Holdings ranks #387 out of 955 companies for Operating Margin %. This puts Xeris Biopharma Holdings in the upper half of its industry. The industry median Operating Margin % is 7.45. Xeris Biopharma Holdings' value of 9.52% is 27.8% above this benchmark. 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Xeris Biopharma Holdings's current Operating Margin % of 9.52% is 27.8% 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 Xeris Biopharma Holdings and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Xeris Biopharma Holdings's current Operating Margin % is 9.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Xeris Biopharma Holdings stock overvalued right now?
Based on GuruFocus' analysis, Xeris Biopharma Holdings (XERS) is currently considered Significantly Overvalued. The stock's GF Value™ is $5.11, compared to a current price of $7.39 — trading 44.5% above its estimated fair value. The current Operating Margin % is 9.52% and 27.8% above the Drug Manufacturers industry median of 7.45. Xeris Biopharma Holdings' overall GF Score™ is 74/100 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 Xeris Biopharma Holdings (XERS), the current Operating Margin % is 9.52% 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 Xeris Biopharma Holdings (XERS) Overvalued in 2026?
Based on GuruFocus' analysis, Xeris Biopharma Holdings stock appears to be overvalued.
The current stock price of $7.39 is trading 44.5% above its estimated GF Value™ of $5.11.
GuruFocus considers Xeris Biopharma Holdings to be Significantly Overvalued.
Key valuation signals for XERS:
Operating Margin %: 9.52%
GF Value™: $5.11 vs. price of $7.39 (44.5% above fair value)
Industry Position: 27.8% above the Drug Manufacturers median (#387 of 955)
No single metric tells the full story. See the XERS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Xeris Biopharma Holdings Inc is a commercial-stage biopharmaceutical company focused on developing and commercializing therapies for people with chronic endocrine and neurological diseases in the United States. It offers Recorlev for the treatment of endogenous hypercortisolemia in patients with Cushing's syndrome; Gvoke for the treatment of severe hypoglycemia; and Keveyis for the treatment of Primary Periodic Paralysis (PPP). Additionally, the company is advancing its Phase 3-ready pipeline product, XP-8121, a once-weekly subcutaneous injection of levothyroxine, which leverages its proprietary technology, XeriSol.
74GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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