Far East HorizonFEHZY 80 Operating Margin % is 26.51% as of Dec. 2025, which is 11% below its 10-year median of 29.89. GuruFocus rates FEHZY with a GF Score™ of 80/100 and a GF Value™ of $15.23. The stock has 6 warning signs investors should review. Among 412 Credit Services companies, Far East Horizon ranks better than 57.28% on this metric.
Far East Horizon (OTCPK:FEHZY) 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.
Far East Horizon Operating Margin % Related Terms
Far East Horizon Operating Margin % Historical Data
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The historical data trend for Far East Horizon'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.
FEHZY vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, Far East Horizon'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.
Far East Horizon Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Far East Horizon's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Far East Horizon'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.
Far East Horizon's Operating Margin % for the fiscal year that ended in Dec. 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.
Far East Horizon (FEHZY) has a Operating Margin % of 26.51% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Far East Horizon and its competitors. This is 11% below median its historical median of 29.89. Over the past decade, Far East Horizon's Operating Margin % has ranged from 23.59 to 35.10. According to the industry distribution chart, Far East Horizon ranks #176 out of 412 companies in the Credit Services industry, placing it in the top 42.7%.
Is Far East Horizon's Operating Margin % too high?
Far East Horizon's current Operating Margin % of 26.51% is 11% below median its 10-year median of 29.89. Over the past 10 years, this metric has ranged from a low of 23.59 to a high of 35.10. The Credit Services industry median Operating Margin % is 17.33. Far East Horizon's value of 26.51% is 53% above this industry median. Based on the distribution chart, Far East Horizon ranks #176 out of 412 companies in the Credit Services industry, which is above the industry midpoint. Overall, Far East Horizon has a GF Score™ of 80/100, reflecting its overall financial health beyond just this single metric.
How does Far East Horizon's Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, Far East Horizon ranks #176 out of 412 companies for Operating Margin %. This puts Far East Horizon in the upper half of its industry. The industry median Operating Margin % is 17.33. Far East Horizon's value of 26.51% is 53% above this benchmark. Historically, Far East Horizon's own Operating Margin % has ranged from 23.59 to 35.10 over the past decade. While the company's 10-year median is 29.89 vs. the industry median of 17.33, Far East Horizon 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 17.33, based on 412 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. Far East Horizon's current Operating Margin % of 26.51% is 53% 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 Far East Horizon and its competitors. For the Credit Services industry, the median Operating Margin % is 17.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Far East Horizon's current Operating Margin % is 26.51%, which is 11% below median its own 10-year median of 29.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Far East Horizon stock overvalued right now?
Far East Horizon (FEHZY) has a current Operating Margin % of 26.51%. The stock's GF Value™ is $15.23, compared to a current price of $13.56 — trading 11% below its estimated fair value. The current Operating Margin % is 26.51%, which is 11% below median its 10-year median of 29.89 and 53% above the Credit Services industry median of 17.33. Far East Horizon's overall GF Score™ is 80/100 with 6 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 Far East Horizon (FEHZY), the current Operating Margin % is 26.51% 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 Far East Horizon (FEHZY) Overvalued in 2026?
Based on GuruFocus' analysis, Far East Horizon stock appears to be undervalued.
The current stock price of $13.56 is trading 11% below its estimated GF Value™ of $15.23.
Key valuation signals for FEHZY:
Operating Margin %: 26.51% (11% below median its 10-year median of 29.89)
GF Value™: $15.23 vs. price of $13.56 (11% below fair value)
Industry Position: 53% above the Credit Services median (#176 of 412)
No single metric tells the full story. See the FEHZY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Far East Horizon Ltd is a specialty finance provider. Its service offerings include financial leasing and advisory, hospital investment and operation, equipment operation services, trading, and brokerage services as well as engineering management services, etc. The company operates in two segments; financial services and industrial operation. A majority of its revenue is generated from the Financial, lease and advisory segment, which is engaged in providing direct finance leasing, sale-leaseback, factoring, entrusted loans, operating leases and sale of related equipment and materials, advisory services, and construction services. Geographically, the company derives maximum revenue from Mainland China, followed by Hong Kong and other locations.
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