Construcciones y Auxiliar de Ferrocarriles (XMAD:CAF) 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.
Construcciones y Auxiliar de Ferrocarriles Operating Margin % Related Terms
Construcciones y Auxiliar de Ferrocarriles 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.
Construcciones y Auxiliar de Ferrocarriles Operating Margin % Chart
Construcciones y Auxiliar de Ferrocarriles Annual Data
XMAD:CAF vs UNP, CSX, NSC: Operating Margin % Comparison
For the Railroads subindustry, Construcciones y Auxiliar de Ferrocarriles'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.
Construcciones y Auxiliar de Ferrocarriles Operating Margin % vs Transportation Industry
Construcciones y Auxiliar de Ferrocarriles 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.
* 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.
Construcciones y Auxiliar de Ferrocarriles (XMAD:CAF) has a Operating Margin % of 5.70% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Construcciones y Auxiliar de Ferrocarriles and its competitors. This is near median its historical median of 5.24. Over the past decade, Construcciones y Auxiliar de Ferrocarriles' Operating Margin % has ranged from 4.05 to 9.85. According to the industry distribution chart, Construcciones y Auxiliar de Ferrocarriles ranks #592 out of 1007 companies in the Transportation industry, placing it in the top 58.8%.
Is Construcciones y Auxiliar de Ferrocarriles' Operating Margin % too high?
Construcciones y Auxiliar de Ferrocarriles' current Operating Margin % of 5.70% is near median its 10-year median of 5.24. Over the past 10 years, this metric has ranged from a low of 4.05 to a high of 9.85. The Transportation industry median Operating Margin % is 7.36. Construcciones y Auxiliar de Ferrocarriles' value of 5.70% is 22.6% below this industry median. Based on the distribution chart, Construcciones y Auxiliar de Ferrocarriles ranks #592 out of 1007 companies in the Transportation industry, which is below the industry midpoint. Overall, Construcciones y Auxiliar de Ferrocarriles has a GF Score™ of 95/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Construcciones y Auxiliar de Ferrocarriles' Operating Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Construcciones y Auxiliar de Ferrocarriles ranks #592 out of 1007 companies for Operating Margin %. This places Construcciones y Auxiliar de Ferrocarriles in the lower half of its industry. The industry median Operating Margin % is 7.36. Construcciones y Auxiliar de Ferrocarriles' value of 5.70% is 22.6% below this benchmark. Historically, Construcciones y Auxiliar de Ferrocarriles' own Operating Margin % has ranged from 4.05 to 9.85 over the past decade. While the company's 10-year median is 5.24 vs. the industry median of 7.36, Construcciones y Auxiliar de Ferrocarriles 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 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. Construcciones y Auxiliar de Ferrocarriles's current Operating Margin % of 5.70% is 22.6% 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 Construcciones y Auxiliar de Ferrocarriles 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. Construcciones y Auxiliar de Ferrocarriles's current Operating Margin % is 5.70%, which is near median its own 10-year median of 5.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Construcciones y Auxiliar de Ferrocarriles stock overvalued right now?
Based on GuruFocus' analysis, Construcciones y Auxiliar de Ferrocarriles (XMAD:CAF) is currently considered Significantly Overvalued. The stock's GF Value™ is €42.73, compared to a current price of €63.20 — trading 47.9% above its estimated fair value. The current Operating Margin % is 5.70%, which is near median its 10-year median of 5.24 and 22.6% below the Transportation industry median of 7.36. Construcciones y Auxiliar de Ferrocarriles' overall GF Score™ is 95/100 with 4 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 Construcciones y Auxiliar de Ferrocarriles (XMAD:CAF), the current Operating Margin % is 5.70% as of Dec. 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.
Is Construcciones y Auxiliar de Ferrocarriles (XMAD:CAF) Overvalued in 2026?
Based on GuruFocus' analysis, Construcciones y Auxiliar de Ferrocarriles stock appears to be overvalued.
The current stock price of €63.20 is trading 47.9% above its estimated GF Value™ of €42.73.
GuruFocus considers Construcciones y Auxiliar de Ferrocarriles to be Significantly Overvalued.
Key valuation signals for XMAD:CAF:
Operating Margin %: 5.70% (near median its 10-year median of 5.24)
GF Value™: €42.73 vs. price of €63.20 (47.9% above fair value)
Industry Position: 22.6% below the Transportation median (#592 of 1007)
No single metric tells the full story. See the XMAD:CAF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Construcciones y Auxiliar de Ferrocarriles Business Description
Construcciones y Auxiliar de Ferrocarriles SA is a Spain-based company that offers comprehensive railway solutions. The company's train-related products comprise high-speed rolling stock, wheelsets, traction and communication systems, signaling systems, and related services including vehicle maintenance, vehicle upgrading and refurbishment, and aftersales technical supports. In addition to supplying train-related products, the company also helps customers conduct viability studies, civil work, electrification projects, and system operation. The company operates under concession or turnkey models. Construcciones y Auxiliar de Ferrocarriles has a global presence, with Europe and Brazil being the two largest markets.
95GF Score
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