CF Industries HoldingsCF +0.20%76 Operating Margin % is 34.59% as of Mar. 2026, which is 41% above its 10-year median of 24.59. GuruFocus rates CF with a GF Score™ of 76/100 and a GF Value™ of $114.85 (Fairly Valued). The stock has 1 warning sign investors should review. Among 251 Agriculture companies, CF Industries Holdings ranks better than 96.81% on this metric.
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.
CF Industries Holdings Operating Margin % Related Terms
CF Industries Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for CF Industries Holdings'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.
CF vs MOS, SMG, FMC: Operating Margin % Comparison
For the Agricultural Inputs subindustry, CF Industries 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.
CF Industries Holdings Operating Margin % vs Agriculture Industry
For the Agriculture industry and Basic Materials sector, CF Industries Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where CF Industries 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.
CF Industries 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.
CF Industries Holdings (CF) has a Operating Margin % of 34.59% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on CF Industries Holdings and its competitors. This is 41% above median its historical median of 24.59. Over the past decade, CF Industries Holdings' Operating Margin % has ranged from 5.67 to 49.80. According to the industry distribution chart, CF Industries Holdings ranks #8 out of 251 companies in the Agriculture industry, placing it in the top 3.2%.
Is CF Industries Holdings' Operating Margin % too high?
CF Industries Holdings' current Operating Margin % of 34.59% is 41% above median its 10-year median of 24.59. Over the past 10 years, this metric has ranged from a low of 5.67 to a high of 49.80. The Agriculture industry median Operating Margin % is 6.76. CF Industries Holdings' value of 34.59% is 411.7% above this industry median. Based on the distribution chart, CF Industries Holdings ranks #8 out of 251 companies in the Agriculture industry, which is in the top quartile — a strong position relative to peers. Overall, CF Industries Holdings has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CF Industries Holdings' Operating Margin % compare to MOS and SMG?
According to the Agriculture industry distribution chart, CF Industries Holdings ranks #8 out of 251 companies for Operating Margin %. This places CF Industries Holdings in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.76. CF Industries Holdings' value of 34.59% is 411.7% above this benchmark. Historically, CF Industries Holdings' own Operating Margin % has ranged from 5.67 to 49.80 over the past decade. While the company's 10-year median is 24.59 vs. the industry median of 6.76, CF Industries Holdings 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 an Agriculture company?
The median Operating Margin % among Agriculture companies is 6.76, based on 251 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. CF Industries Holdings's current Operating Margin % of 34.59% is 411.7% 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 CF Industries Holdings and its competitors. For the Agriculture industry, the median Operating Margin % is 6.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CF Industries Holdings's current Operating Margin % is 34.59%, which is 41% above median its own 10-year median of 24.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CF Industries Holdings stock overvalued right now?
Based on GuruFocus' analysis, CF Industries Holdings (CF) is currently considered Fairly Valued. The stock's GF Value™ is $114.85, compared to a current price of $105.70 — trading 8% below its estimated fair value. The current Operating Margin % is 34.59%, which is 41% above median its 10-year median of 24.59 and 411.7% above the Agriculture industry median of 6.76. CF Industries Holdings' overall GF Score™ is 76/100 with 1 warning sign 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 CF Industries Holdings (CF), the current Operating Margin % is 34.59% 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 CF Industries Holdings (CF) Overvalued in 2026?
Based on GuruFocus' analysis, CF Industries Holdings stock appears to be undervalued.
The current stock price of $105.70 is trading 8% below its estimated GF Value™ of $114.85.
GuruFocus considers CF Industries Holdings to be Fairly Valued.
Key valuation signals for CF:
Operating Margin %: 34.59% (41% above median its 10-year median of 24.59)
GF Value™: $114.85 vs. price of $105.70 (8% below fair value)
Industry Position: 411.7% above the Agriculture median (#8 of 251)
No single metric tells the full story. See the CF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
CF Industries is a leading producer and distributor of nitrogen, which is primarily used in fertilizers. The company operates nitrogen manufacturing plants primarily in North America. CF also produces nitrogen in the United Kingdom and holds a joint venture interest in a nitrogen production facility in Trinidad and Tobago. CF makes nitrogen primarily using low-cost US natural gas as its feedstock, making the company one of the lowest-cost nitrogen producers globally. It is also investing in carbon-free blue and green ammonia, which can be used as an alternative fuel to hydrogen or as a means to transport hydrogen.
76GF Score
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