Forbo Holding AGXSWX:FORN +0.41%73 Operating Margin % is 8.34% as of Dec. 2025, which is 28% below its 10-year median of 11.66. GuruFocus rates XSWX:FORN with a GF Score™ of 73/100 and a GF Value™ of CHF879.59 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,767 Construction companies, Forbo Holding AG ranks better than 62.25% on this metric.
Forbo Holding AG (XSWX:FORN) 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.
Forbo Holding AG Operating Margin % Related Terms
Forbo Holding AG Operating Margin % Historical Data
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The historical data trend for Forbo Holding AG'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.
XSWX:FORN vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Forbo Holding AG'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.
Forbo Holding AG Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Forbo Holding AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Forbo Holding AG'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.
Forbo Holding AG'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.
Forbo Holding AG (XSWX:FORN) has a Operating Margin % of 8.34% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Forbo Holding AG and its competitors. This is 28% below median its historical median of 11.66. Over the past decade, Forbo Holding AG's Operating Margin % has ranged from 6.41 to 14.27. According to the industry distribution chart, Forbo Holding AG ranks #667 out of 1767 companies in the Construction industry, placing it in the top 37.7%.
Is Forbo Holding AG's Operating Margin % too high?
Forbo Holding AG's current Operating Margin % of 8.34% is 28% below median its 10-year median of 11.66. Over the past 10 years, this metric has ranged from a low of 6.41 to a high of 14.27. The Construction industry median Operating Margin % is 5.89. Forbo Holding AG's value of 8.34% is 41.6% above this industry median. Based on the distribution chart, Forbo Holding AG ranks #667 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Forbo Holding AG has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Forbo Holding AG's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Forbo Holding AG ranks #667 out of 1767 companies for Operating Margin %. This puts Forbo Holding AG in the upper half of its industry. The industry median Operating Margin % is 5.89. Forbo Holding AG's value of 8.34% is 41.6% above this benchmark. Historically, Forbo Holding AG's own Operating Margin % has ranged from 6.41 to 14.27 over the past decade. While the company's 10-year median is 11.66 vs. the industry median of 5.89, Forbo Holding AG 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Forbo Holding AG's current Operating Margin % of 8.34% is 41.6% 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 Forbo Holding AG and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Forbo Holding AG's current Operating Margin % is 8.34%, which is 28% below median its own 10-year median of 11.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Forbo Holding AG stock overvalued right now?
Based on GuruFocus' analysis, Forbo Holding AG (XSWX:FORN) is currently considered Modestly Undervalued. The stock's GF Value™ is CHF879.59, compared to a current price of CHF739.00 — trading 16% below its estimated fair value. The current Operating Margin % is 8.34%, which is 28% below median its 10-year median of 11.66 and 41.6% above the Construction industry median of 5.89. Forbo Holding AG's overall GF Score™ is 73/100 with 3 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 Forbo Holding AG (XSWX:FORN), the current Operating Margin % is 8.34% 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 Forbo Holding AG (XSWX:FORN) Overvalued in 2026?
Based on GuruFocus' analysis, Forbo Holding AG stock appears to be undervalued.
The current stock price of CHF739.00 is trading 16% below its estimated GF Value™ of CHF879.59.
GuruFocus considers Forbo Holding AG to be Modestly Undervalued.
Key valuation signals for XSWX:FORN:
Operating Margin %: 8.34% (28% below median its 10-year median of 11.66)
GF Value™: CHF879.59 vs. price of CHF739.00 (16% below fair value)
Industry Position: 41.6% above the Construction median (#667 of 1767)
No single metric tells the full story. See the XSWX:FORN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Forbo Holding AG manufactures and sells flooring and movement systems. The company organizes itself into two segments based on product type. The Flooring Systems segment, which generates the majority of revenue, sells commercial and residential floor coverings, entrance flooring systems, and building and construction flooring adhesives to the construction and remodeling industries. The Movement Systems segment sells conveyor and processing belts, plastic modular belts, power transmission belts, and flat modular belts, to the food, automotive, and fitness equipment industries. The majority of revenue comes from Europe, and also has its presence in Americas and Asia/Pacific and Africa.
73GF 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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