Hikari TsushinFRA:HIK -3.68%80 Net Margin % is 19.94% as of Mar. 2026, which is 63% above its 10-year median of 12.21. GuruFocus rates FRA:HIK with a GF Score™ of 80/100 and a GF Value™ of €218.29 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 550 Conglomerates companies, Hikari Tsushin ranks better than 87.82% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Hikari Tsushin's Net Income for the
three
months ended in Mar. 2026 was €209 Mil. Hikari Tsushin's Revenue for the
three
months ended in Mar. 2026 was €1,048 Mil. Therefore, Hikari Tsushin's net margin for the quarter that ended in Mar. 2026 was 19.94%.
The historical rank and industry rank for Hikari Tsushin's Net Margin % or its related term are showing as below:
FRA:HIK'
s Net Margin % Range Over the Past 10 Years
Min: 9.1 Med: 12.21 Max: 20.55
Current: 20.55
FRA:HIK's Net Margin % is ranked better than 87.82% of 550
companies
in the Conglomerates industry
Industry Median: 4.195
vs FRA:HIK: 20.55
Hikari Tsushin (FRA:HIK) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Hikari Tsushin Net Margin % Related Terms
Hikari Tsushin Net Margin % Historical Data
* Premium members only.
The historical data trend for Hikari Tsushin's Net 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 Conglomerates subindustry, Hikari Tsushin's Net Margin %, along with its competitors' market caps and Net 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.
Hikari Tsushin Net Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Tsushin's Net Margin % distribution charts can be found below:
* The bar in red indicates where Hikari Tsushin's Net Margin % falls into.
* 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.
Hikari Tsushin (FRA:HIK) has a Net Margin % of 19.94% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Hikari Tsushin and its competitors. This is 63% above median its historical median of 12.21. Over the past decade, Hikari Tsushin's Net Margin % has ranged from 9.10 to 20.55. According to the industry distribution chart, Hikari Tsushin ranks #67 out of 550 companies in the Conglomerates industry, placing it in the top 12.2%.
Is Hikari Tsushin's Net Margin % too high?
Hikari Tsushin's current Net Margin % of 19.94% is 63% above median its 10-year median of 12.21. Over the past 10 years, this metric has ranged from a low of 9.10 to a high of 20.55. The Conglomerates industry median Net Margin % is 4.20. Hikari Tsushin's value of 19.94% is 375.3% above this industry median. Based on the distribution chart, Hikari Tsushin ranks #67 out of 550 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Hikari Tsushin has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hikari Tsushin's Net Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hikari Tsushin ranks #67 out of 550 companies for Net Margin %. This places Hikari Tsushin in the top 12% of its industry — outperforming the majority of peers. The industry median Net Margin % is 4.20. Hikari Tsushin's value of 19.94% is 375.3% above this benchmark. Historically, Hikari Tsushin's own Net Margin % has ranged from 9.10 to 20.55 over the past decade. While the company's 10-year median is 12.21 vs. the industry median of 4.20, Hikari Tsushin 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 Net Margin % for a Conglomerates company?
The median Net Margin % among Conglomerates companies is 4.20, based on 550 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Hikari Tsushin's current Net Margin % of 19.94% is 375.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Hikari Tsushin and its competitors. For the Conglomerates industry, the median Net Margin % is 4.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current Net Margin % is 19.94%, which is 63% above median its own 10-year median of 12.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Tsushin stock overvalued right now?
Based on GuruFocus' analysis, Hikari Tsushin (FRA:HIK) is currently considered Modestly Undervalued. The stock's GF Value™ is €218.29, compared to a current price of €183.00 — trading 16.2% below its estimated fair value. The current Net Margin % is 19.94%, which is 63% above median its 10-year median of 12.21 and 375.3% above the Conglomerates industry median of 4.20. Hikari Tsushin's overall GF Score™ is 80/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Hikari Tsushin (FRA:HIK), the current Net Margin % is 19.94% 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 Hikari Tsushin (FRA:HIK) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued.
The current stock price of €183.00 is trading 16.2% below its estimated GF Value™ of €218.29.
GuruFocus considers Hikari Tsushin to be Modestly Undervalued.
Key valuation signals for FRA:HIK:
Net Margin %: 19.94% (63% above median its 10-year median of 12.21)
GF Value™: €218.29 vs. price of €183.00 (16.2% below fair value)
Industry Position: 375.3% above the Conglomerates median (#67 of 550)
No single metric tells the full story. See the FRA:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.
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