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.
Hapvida Participacoes Investimento Operating Margin % Related Terms
Hapvida Participacoes Investimento Operating Margin % Historical Data
* 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.
BSP:HAPV3 vs AFL, MET, PRU: Operating Margin % Comparison
For the Insurance - Life subindustry, Hapvida Participacoes Investimento'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.
Hapvida Participacoes Investimento Operating Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Hapvida Participacoes Investimento's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hapvida Participacoes Investimento'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.
* 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.
Hapvida Participacoes Investimento (BSP:HAPV3) has a Operating Margin % of 8.89% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hapvida Participacoes Investimento and its competitors. This is 19% below median its historical median of 10.92. Over the past decade, Hapvida Participacoes Investimento's Operating Margin % has ranged from 0.21 to 20.05. According to the industry distribution chart, Hapvida Participacoes Investimento ranks #41 out of 64 companies in the Insurance industry, placing it in the top 64.1%.
Is Hapvida Participacoes Investimento's Operating Margin % too high?
Hapvida Participacoes Investimento's current Operating Margin % of 8.89% is 19% below median its 10-year median of 10.92. Over the past 10 years, this metric has ranged from a low of 0.21 to a high of 20.05. The Insurance industry median Operating Margin % is 11.62. Hapvida Participacoes Investimento's value of 8.89% is 23.5% below this industry median. Based on the distribution chart, Hapvida Participacoes Investimento ranks #41 out of 64 companies in the Insurance industry, which is below the industry midpoint. Overall, Hapvida Participacoes Investimento has a GF Score™ of 67/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hapvida Participacoes Investimento's Operating Margin % compare to AFL and MET?
According to the Insurance industry distribution chart, Hapvida Participacoes Investimento ranks #41 out of 64 companies for Operating Margin %. This places Hapvida Participacoes Investimento in the lower half of its industry. The industry median Operating Margin % is 11.62. Hapvida Participacoes Investimento's value of 8.89% is 23.5% below this benchmark. Historically, Hapvida Participacoes Investimento's own Operating Margin % has ranged from 0.21 to 20.05 over the past decade. While the company's 10-year median is 10.92 vs. the industry median of 11.62, Hapvida Participacoes Investimento has consistently been below 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 Insurance company?
The median Operating Margin % among Insurance companies is 11.62, based on 64 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. Hapvida Participacoes Investimento's current Operating Margin % of 8.89% is 23.5% below 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 Hapvida Participacoes Investimento and its competitors. For the Insurance industry, the median Operating Margin % is 11.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hapvida Participacoes Investimento's current Operating Margin % is 8.89%, which is 19% below median its own 10-year median of 10.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hapvida Participacoes Investimento stock overvalued right now?
Based on GuruFocus' analysis, Hapvida Participacoes Investimento (BSP:HAPV3) is currently considered Possible Value Trap. The stock's GF Value™ is R$54.47, compared to a current price of R$10.12 — trading 81.4% below its estimated fair value. The current Operating Margin % is 8.89%, which is 19% below median its 10-year median of 10.92 and 23.5% below the Insurance industry median of 11.62. Hapvida Participacoes Investimento's overall GF Score™ is 67/100 with 5 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 Hapvida Participacoes Investimento (BSP:HAPV3), the current Operating Margin % is 8.89% 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 Hapvida Participacoes Investimento (BSP:HAPV3) Overvalued in 2026?
Based on GuruFocus' analysis, Hapvida Participacoes Investimento stock appears to be undervalued.
The current stock price of R$10.12 is trading 81.4% below its estimated GF Value™ of R$54.47.
GuruFocus considers Hapvida Participacoes Investimento to be Possible Value Trap.
Key valuation signals for BSP:HAPV3:
Operating Margin %: 8.89% (19% below median its 10-year median of 10.92)
GF Value™: R$54.47 vs. price of R$10.12 (81.4% below fair value)
Industry Position: 23.5% below the Insurance median (#41 of 64)
No single metric tells the full story. See the BSP:HAPV3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hapvida Participacoes Investimento Business Description
Hapvida Participacoes Investimento SA is the medical-hospital and dental care company. The company and its subsidiaries are mainly engaged in the sale of health insurance plans and delivering the majority of medical assistance at its own hospitals, clinics, imaging diagnostics and laboratories; and the sale of dental insurance plans for services provided by an accredited network.
67GF Score
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