Pernod RicardXPAR:RI +1.58%81 Operating Margin % is 30.67% as of Dec. 2025, which is 14% above its 10-year median of 26.94. GuruFocus rates XPAR:RI with a GF Score™ of 81/100 and a GF Value™ of €105.09 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 211 Beverages - Alcoholic companies, Pernod Ricard ranks better than 92.42% on this metric.
The historical rank and industry rank for Pernod Ricard's Operating Margin % or its related term are showing as below:
XPAR:RI'
s Operating Margin % Range Over the Past 10 Years
Min: 25.7 Med: 26.94 Max: 28.21
Current: 25.7
XPAR:RI's Operating Margin % is ranked better than 92.42% of 211
companies
in the Beverages - Alcoholic industry
Industry Median: 7.82
vs XPAR:RI: 25.70
Pernod Ricard's 5-Year Average Operating Margin % Growth Rate was -0.30% per year.
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.
Pernod Ricard Operating Margin % Related Terms
Pernod Ricard Operating Margin % Historical Data
* Premium members only.
The historical data trend for Pernod Ricard'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.
For the Beverages - Wineries & Distilleries subindustry, Pernod Ricard'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.
Pernod Ricard Operating Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Pernod Ricard's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pernod Ricard'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.
Pernod Ricard's Operating Margin % for the fiscal year that ended in Jun. 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.
Pernod Ricard (XPAR:RI) has a Operating Margin % of 30.67% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Pernod Ricard and its competitors. This is 14% above median its historical median of 26.94. Over the past decade, Pernod Ricard's Operating Margin % has ranged from 25.70 to 28.21. According to the industry distribution chart, Pernod Ricard ranks #16 out of 211 companies in the Beverages - Alcoholic industry, placing it in the top 7.6%.
Is Pernod Ricard's Operating Margin % too high?
Pernod Ricard's current Operating Margin % of 30.67% is 14% above median its 10-year median of 26.94. Over the past 10 years, this metric has ranged from a low of 25.70 to a high of 28.21. The Beverages - Alcoholic industry median Operating Margin % is 7.82. Pernod Ricard's value of 30.67% is 292.2% above this industry median. Based on the distribution chart, Pernod Ricard ranks #16 out of 211 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Pernod Ricard has a GF Score™ of 81/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Pernod Ricard's Operating Margin % compare to BF.B?
According to the Beverages - Alcoholic industry distribution chart, Pernod Ricard ranks #16 out of 211 companies for Operating Margin %. This places Pernod Ricard in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.82. Pernod Ricard's value of 30.67% is 292.2% above this benchmark. Historically, Pernod Ricard's own Operating Margin % has ranged from 25.70 to 28.21 over the past decade. While the company's 10-year median is 26.94 vs. the industry median of 7.82, Pernod Ricard 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 Beverages - Alcoholic company?
The median Operating Margin % among Beverages - Alcoholic companies is 7.82, based on 211 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. Pernod Ricard's current Operating Margin % of 30.67% is 292.2% 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 Pernod Ricard and its competitors. For the Beverages - Alcoholic industry, the median Operating Margin % is 7.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pernod Ricard's current Operating Margin % is 30.67%, which is 14% above median its own 10-year median of 26.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pernod Ricard stock overvalued right now?
Based on GuruFocus' analysis, Pernod Ricard (XPAR:RI) is currently considered Possible Value Trap. The stock's GF Value™ is €105.09, compared to a current price of €64.48 — trading 38.6% below its estimated fair value. The current Operating Margin % is 30.67%, which is 14% above median its 10-year median of 26.94 and 292.2% above the Beverages - Alcoholic industry median of 7.82. Pernod Ricard'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 Pernod Ricard (XPAR:RI), the current Operating Margin % is 30.67% 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 Pernod Ricard (XPAR:RI) Overvalued in 2026?
Based on GuruFocus' analysis, Pernod Ricard stock appears to be undervalued.
The current stock price of €64.48 is trading 38.6% below its estimated GF Value™ of €105.09.
GuruFocus considers Pernod Ricard to be Possible Value Trap.
Key valuation signals for XPAR:RI:
Operating Margin %: 30.67% (14% above median its 10-year median of 26.94)
GF Value™: €105.09 vs. price of €64.48 (38.6% below fair value)
Industry Position: 292.2% above the Beverages - Alcoholic median (#16 of 211)
No single metric tells the full story. See the XPAR:RI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pernod Ricard was formed in 1975 through the merger of Pernod, founded in 1805, and Ricard, created in 1932. Through acquisitions, the firm has grown to become the world's second-largest distiller by volume, behind Diageo. Pernod Ricard possesses the most comprehensive spirits portfolio globally, distributing over 240 brands across 160 countries. Flagship spirits brands include Absolut vodka, Beefeater gin, Chivas Regal and The Glenlivet scotch whisky, Jameson Irish whiskey, Malibu rum, and Martell cognac. The firm has also shed noncore assets over the years, including several wine brands in 2025.
81GF Score
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