Advanced Chemical Industries (DHA:ACI) 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.
Advanced Chemical Industries Operating Margin % Related Terms
Advanced Chemical Industries 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.
Advanced Chemical Industries Operating Margin % Chart
DHA:ACI vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Advanced Chemical Industries'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.
Advanced Chemical Industries Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Advanced Chemical Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Advanced Chemical Industries's Operating Margin % falls into.
Advanced Chemical Industries 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.
* 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.
Advanced Chemical Industries (DHA:ACI) has a Operating Margin % of 6.55% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Advanced Chemical Industries and its competitors. This is 12% above median its historical median of 5.84. Over the past decade, Advanced Chemical Industries' Operating Margin % has ranged from 4.76 to 9.40. According to the industry distribution chart, Advanced Chemical Industries ranks #237 out of 545 companies in the Conglomerates industry, placing it in the top 43.5%.
Is Advanced Chemical Industries' Operating Margin % too high?
Advanced Chemical Industries' current Operating Margin % of 6.55% is 12% above median its 10-year median of 5.84. Over the past 10 years, this metric has ranged from a low of 4.76 to a high of 9.40. The Conglomerates industry median Operating Margin % is 5.93. Advanced Chemical Industries' value of 6.55% is 10.5% above this industry median. Based on the distribution chart, Advanced Chemical Industries ranks #237 out of 545 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Advanced Chemical Industries has a GF Score™ of 89/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Advanced Chemical Industries' Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Advanced Chemical Industries ranks #237 out of 545 companies for Operating Margin %. This puts Advanced Chemical Industries in the upper half of its industry. The industry median Operating Margin % is 5.93. Advanced Chemical Industries' value of 6.55% is 10.5% above this benchmark. Historically, Advanced Chemical Industries' own Operating Margin % has ranged from 4.76 to 9.40 over the past decade. While the company's 10-year median is 5.84 vs. the industry median of 5.93, Advanced Chemical Industries 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 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. Advanced Chemical Industries's current Operating Margin % of 6.55% is 10.5% 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 Advanced Chemical Industries and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Advanced Chemical Industries's current Operating Margin % is 6.55%, which is 12% above median its own 10-year median of 5.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Chemical Industries stock overvalued right now?
Based on GuruFocus' analysis, Advanced Chemical Industries (DHA:ACI) is currently considered Fairly Valued. The stock's GF Value™ is BDT210.17, compared to a current price of BDT191.40 — trading 8.9% below its estimated fair value. The current Operating Margin % is 6.55%, which is 12% above median its 10-year median of 5.84 and 10.5% above the Conglomerates industry median of 5.93. Advanced Chemical Industries' overall GF Score™ is 89/100 with 4 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 Advanced Chemical Industries (DHA:ACI), the current Operating Margin % is 6.55% 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 Advanced Chemical Industries (DHA:ACI) Overvalued in 2026?
Based on GuruFocus' analysis, Advanced Chemical Industries stock appears to be undervalued.
The current stock price of BDT191.40 is trading 8.9% below its estimated GF Value™ of BDT210.17.
GuruFocus considers Advanced Chemical Industries to be Fairly Valued.
Key valuation signals for DHA:ACI:
Operating Margin %: 6.55% (12% above median its 10-year median of 5.84)
GF Value™: BDT210.17 vs. price of BDT191.40 (8.9% below fair value)
Industry Position: 10.5% above the Conglomerates median (#237 of 545)
No single metric tells the full story. See the DHA:ACI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Advanced Chemical Industries PLC is a Bangladesh-based company engaged in the manufacturing of pharmaceuticals, consumer brands, animal health products, and also markets, along with agrochemicals, seeds, and other consumer brand items. The company operates in Healthcare, Agribusinesses, Retail Chain, and Consumer brands that include Livestock, Fisheries, Farm Mechanization activities, Toiletries, Home Care, Hygiene, Electrical, Electronics, Mobile, Salt, Flour, Foods, Rice, Tea, Edible Oil, Paints, and International Businesses.
89GF Score
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