PWR HoldingsASX:PWH -1.87%95 Operating Margin % is 11.50% as of Dec. 2025, which is 54% below its 10-year median of 24.74. GuruFocus rates ASX:PWH with a GF Score™ of 95/100 and a GF Value™ of A$12.68 (Possible Value Trap). The stock has 7 warning signs investors should review. Among 1,325 Vehicles & Parts companies, PWR Holdings ranks better than 80.6% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. PWR Holdings's Operating Income for the
six
months ended in Dec. 2025 was A$9.2 Mil. PWR Holdings's Revenue for the
six
months ended in Dec. 2025 was A$80.4 Mil. Therefore, PWR Holdings's Operating Margin % for the quarter that ended in Dec. 2025 was 11.50%.
Warning Sign:
PWR Holdings Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -12.6%.
The historical rank and industry rank for PWR Holdings's Operating Margin % or its related term are showing as below:
ASX:PWH'
s Operating Margin % Range Over the Past 10 Years
Min: 8.78 Med: 24.74 Max: 32.11
Current: 10.9
ASX:PWH's Operating Margin % is ranked better than 80.6% of 1325
companies
in the Vehicles & Parts industry
Industry Median: 4.86
vs ASX:PWH: 10.90
PWR Holdings's 5-Year Average Operating Margin % Growth Rate was -12.60% per year.
PWR Holdings's Operating Income for the
six
months ended in Dec. 2025 was A$9.2 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was A$16.1 Mil.
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.
PWR Holdings Operating Margin % Related Terms
PWR Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for PWR 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.
ASX:PWH vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, PWR 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.
PWR Holdings Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, PWR Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PWR 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.
PWR Holdings'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.
PWR Holdings (ASX:PWH) has a Operating Margin % of 11.50% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on PWR Holdings and its competitors. This is 54% below median its historical median of 24.74. Over the past decade, PWR Holdings' Operating Margin % has ranged from 8.78 to 32.11. According to the industry distribution chart, PWR Holdings ranks #257 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 19.4%.
Is PWR Holdings' Operating Margin % too high?
PWR Holdings' current Operating Margin % of 11.50% is 54% below median its 10-year median of 24.74. Over the past 10 years, this metric has ranged from a low of 8.78 to a high of 32.11. The Vehicles & Parts industry median Operating Margin % is 4.86. PWR Holdings' value of 11.50% is 136.6% above this industry median. Based on the distribution chart, PWR Holdings ranks #257 out of 1325 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, PWR Holdings has a GF Score™ of 95/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does PWR Holdings' Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, PWR Holdings ranks #257 out of 1325 companies for Operating Margin %. This places PWR Holdings in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.86. PWR Holdings' value of 11.50% is 136.6% above this benchmark. Historically, PWR Holdings' own Operating Margin % has ranged from 8.78 to 32.11 over the past decade. While the company's 10-year median is 24.74 vs. the industry median of 4.86, PWR 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 a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. PWR Holdings's current Operating Margin % of 11.50% is 136.6% 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 PWR Holdings and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PWR Holdings's current Operating Margin % is 11.50%, which is 54% below median its own 10-year median of 24.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PWR Holdings stock overvalued right now?
Based on GuruFocus' analysis, PWR Holdings (ASX:PWH) is currently considered Possible Value Trap. The stock's GF Value™ is A$12.68, compared to a current price of A$7.87 — trading 37.9% below its estimated fair value. The current Operating Margin % is 11.50%, which is 54% below median its 10-year median of 24.74 and 136.6% above the Vehicles & Parts industry median of 4.86. PWR Holdings' overall GF Score™ is 95/100 with 7 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 PWR Holdings (ASX:PWH), the current Operating Margin % is 11.50% 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 PWR Holdings (ASX:PWH) Overvalued in 2026?
Based on GuruFocus' analysis, PWR Holdings stock appears to be undervalued.
The current stock price of A$7.87 is trading 37.9% below its estimated GF Value™ of A$12.68.
GuruFocus considers PWR Holdings to be Possible Value Trap.
Key valuation signals for ASX:PWH:
Operating Margin %: 11.50% (54% below median its 10-year median of 24.74)
GF Value™: A$12.68 vs. price of A$7.87 (37.9% below fair value)
Industry Position: 136.6% above the Vehicles & Parts median (#257 of 1325)
No single metric tells the full story. See the ASX:PWH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PWR Holdings is a designer, manufacturer, and supplier of cooling solutions for motorsports and the performance automotive industry. PWR produces aluminum radiators, intercoolers, heat exchangers, oil coolers, and other cooling accessories for motorsports, performance automotive original equipment manufacturers, the automotive aftermarket, and aerospace and defense sectors. The motorsports segment generates the majority of revenue, while OEM and aftermarket constitute over a third of the income stream. PWR's products are primarily sold in North America and Europe.
95GF Score
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