Founder HoldingsFHGDF 46 Operating Margin % is 7.93% as of Dec. 2025, which is 59% below its 10-year median of 19.13. GuruFocus rates FHGDF with a GF Score™ of 46/100 and a GF Value™ of $0.07 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,818 Software companies, Founder Holdings ranks worse than 50.82% on this metric.
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.
Founder Holdings Operating Margin % Related Terms
Founder Holdings Operating Margin % Historical Data
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The historical data trend for Founder 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.
FHGDF vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Founder 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.
Founder Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, Founder Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Founder 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.
Founder Holdings'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.
Founder Holdings (FHGDF) has a Operating Margin % of 7.93% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Founder Holdings and its competitors. This is 59% below median its historical median of 19.13. Over the past decade, Founder Holdings' Operating Margin % has ranged from 3.63 to 23.15. According to the industry distribution chart, Founder Holdings ranks #1432 out of 2818 companies in the Software industry, placing it in the top 50.8%.
Is Founder Holdings' Operating Margin % too high?
Founder Holdings' current Operating Margin % of 7.93% is 59% below median its 10-year median of 19.13. Over the past 10 years, this metric has ranged from a low of 3.63 to a high of 23.15. The Software industry median Operating Margin % is 3.88. Founder Holdings' value of 7.93% is 104.6% above this industry median. Based on the distribution chart, Founder Holdings ranks #1432 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Founder Holdings has a GF Score™ of 46/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Founder Holdings' Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Founder Holdings ranks #1432 out of 2818 companies for Operating Margin %. This places Founder Holdings in the lower half of its industry. The industry median Operating Margin % is 3.88. Founder Holdings' value of 7.93% is 104.6% above this benchmark. Historically, Founder Holdings' own Operating Margin % has ranged from 3.63 to 23.15 over the past decade. While the company's 10-year median is 19.13 vs. the industry median of 3.88, Founder 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 Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 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. Founder Holdings's current Operating Margin % of 7.93% is 104.6% 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 Founder Holdings and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Founder Holdings's current Operating Margin % is 7.93%, which is 59% below median its own 10-year median of 19.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Founder Holdings stock overvalued right now?
Based on GuruFocus' analysis, Founder Holdings (FHGDF) is currently considered Fairly Valued. The stock's GF Value™ is $0.07, compared to a current price of $0.07 — trading 5.4% above its estimated fair value. The current Operating Margin % is 7.93%, which is 59% below median its 10-year median of 19.13 and 104.6% above the Software industry median of 3.88. Founder Holdings' overall GF Score™ is 46/100 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 Founder Holdings (FHGDF), the current Operating Margin % is 7.93% 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 Founder Holdings (FHGDF) Overvalued in 2026?
Based on GuruFocus' analysis, Founder Holdings stock appears to be overvalued.
The current stock price of $0.07 is trading 5.4% above its estimated GF Value™ of $0.07.
GuruFocus considers Founder Holdings to be Fairly Valued.
Key valuation signals for FHGDF:
Operating Margin %: 7.93% (59% below median its 10-year median of 19.13)
GF Value™: $0.07 vs. price of $0.07 (5.4% above fair value)
Industry Position: 104.6% above the Software median (#1432 of 2818)
No single metric tells the full story. See the FHGDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founder Holdings Ltd is an investment holding company engaged in providing information technology (IT) system services. Its core activities include the sale of software, hardware, and information products, along with software development and system integration. The Group serves industries such as printing, media, publishing, big data, and font libraries, offering advanced information processing technologies, solutions, and value-added services to support seamless digital experiences. It operates in domestic and overseas markets, with the majority of its revenue generated from Mainland China, alongside operations in Hong Kong and other regions.
46GF Score
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