LG Electronics IndiaBOM:544576 +0.29%19 Operating Margin % is 10.48% as of Mar. 2026, which is 19% above its 10-year median of 8.79. GuruFocus rates BOM:544576 with a GF Score™ of 19/100. The stock has 1 warning sign investors should review. Among 2,472 Hardware companies, LG Electronics India ranks better than 70.15% on this metric.
LG Electronics India (BOM:544576) 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.
LG Electronics India Operating Margin % Related Terms
LG Electronics India Operating Margin % Historical Data
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The historical data trend for LG Electronics India'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 Consumer Electronics subindustry, LG Electronics India'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.
LG Electronics India Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, LG Electronics India's Operating Margin % distribution charts can be found below:
* The bar in red indicates where LG Electronics India's Operating Margin % falls into.
LG Electronics India Operating Margin % Calculation
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.
LG Electronics India's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
LG Electronics India (BOM:544576) has a Operating Margin % of 10.48% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on LG Electronics India and its competitors. This is 19% above median its historical median of 8.79. Over the past decade, LG Electronics India's Operating Margin % has ranged from 8.18 to 11.20. According to the industry distribution chart, LG Electronics India ranks #738 out of 2472 companies in the Hardware industry, placing it in the top 29.9%.
Is LG Electronics India's Operating Margin % too high?
LG Electronics India's current Operating Margin % of 10.48% is 19% above median its 10-year median of 8.79. Over the past 10 years, this metric has ranged from a low of 8.18 to a high of 11.20. The Hardware industry median Operating Margin % is 3.81. LG Electronics India's value of 10.48% is 175.1% above this industry median. Based on the distribution chart, LG Electronics India ranks #738 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, LG Electronics India has a GF Score™ of 19/100, reflecting its overall financial health beyond just this single metric.
How does LG Electronics India's Operating Margin % compare to AAPL?
According to the Hardware industry distribution chart, LG Electronics India ranks #738 out of 2472 companies for Operating Margin %. This puts LG Electronics India in the upper half of its industry. The industry median Operating Margin % is 3.81. LG Electronics India's value of 10.48% is 175.1% above this benchmark. Historically, LG Electronics India's own Operating Margin % has ranged from 8.18 to 11.20 over the past decade. While the company's 10-year median is 8.79 vs. the industry median of 3.81, LG Electronics India 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. LG Electronics India's current Operating Margin % of 10.48% is 175.1% 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 LG Electronics India and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. LG Electronics India's current Operating Margin % is 10.48%, which is 19% above median its own 10-year median of 8.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is LG Electronics India stock overvalued right now?
LG Electronics India (BOM:544576) has a current Operating Margin % of 10.48%. The current Operating Margin % is 10.48%, which is 19% above median its 10-year median of 8.79 and 175.1% above the Hardware industry median of 3.81. LG Electronics India's overall GF Score™ is 19/100 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 LG Electronics India (BOM:544576), the current Operating Margin % is 10.48% 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.
LG Electronics India Ltd is engaged in the manufacturing of televisions (flat panel, signage, projectors, monitor TVs), air conditioners, refrigerators, microwave ovens, washing machines, dishwashers, vacuum cleaners, ceiling fans, audio-visual equipment, water purifiers, air purifiers, compressors, personal computers, and security cameras. It has identified two primary business segments: the Home Appliances and Air Solution division, and the Home Entertainment division. The majority of the company's revenue is generated from the Home Appliances and Air Solution division. The company operates across various geographies, including Domestic markets, Africa, Europe, Asia (excluding India), and others, with the majority of its revenue coming from the Domestic market.
19GF Score
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