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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.
Hargreaves Services Operating Margin % Related Terms
Hargreaves Services Operating Margin % Historical Data
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The historical data trend for Hargreaves Services'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.
FRA:H6W vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Hargreaves Services'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.
Hargreaves Services Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hargreaves Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hargreaves Services'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.
Hargreaves Services's Operating Margin % for the fiscal year that ended in May. 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.
Hargreaves Services (FRA:H6W) has a Operating Margin % of 7.28% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hargreaves Services and its competitors. According to the industry distribution chart, Hargreaves Services ranks #248 out of 549 companies in the Conglomerates industry, placing it in the top 45.2%.
Is Hargreaves Services' Operating Margin % too high?
Hargreaves Services' current Operating Margin % is 7.28%. The Conglomerates industry median Operating Margin % is 5.79. Hargreaves Services' value of 7.28% is 25.7% above this industry median. Based on the distribution chart, Hargreaves Services ranks #248 out of 549 companies in the Conglomerates industry, which is above the industry midpoint. Overall, Hargreaves Services has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hargreaves Services' Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hargreaves Services ranks #248 out of 549 companies for Operating Margin %. This puts Hargreaves Services in the upper half of its industry. The industry median Operating Margin % is 5.79. Hargreaves Services' value of 7.28% is 25.7% above this benchmark. 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 5.79, based on 549 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. Hargreaves Services's current Operating Margin % of 7.28% is 25.7% 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 Hargreaves Services and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hargreaves Services's current Operating Margin % is 7.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hargreaves Services stock overvalued right now?
Based on GuruFocus' analysis, Hargreaves Services (FRA:H6W) is currently considered Fairly Valued. The stock's GF Value™ is €9.68, compared to a current price of €9.25 — trading 4.4% below its estimated fair value. The current Operating Margin % is 7.28% and 25.7% above the Conglomerates industry median of 5.79. Hargreaves Services' overall GF Score™ is 73/100 with 7 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 Hargreaves Services (FRA:H6W), the current Operating Margin % is 7.28% as of Nov. 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 Hargreaves Services (FRA:H6W) Overvalued in 2026?
Based on GuruFocus' analysis, Hargreaves Services stock appears to be undervalued.
The current stock price of €9.25 is trading 4.4% below its estimated GF Value™ of €9.68.
GuruFocus considers Hargreaves Services to be Fairly Valued.
Key valuation signals for FRA:H6W:
Operating Margin %: 7.28%
GF Value™: €9.68 vs. price of €9.25 (4.4% below fair value)
Industry Position: 25.7% above the Conglomerates median (#248 of 549)
No single metric tells the full story. See the FRA:H6W stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hargreaves Services PLC delivers projects and services in the infrastructure, energy, and property sectors, supporting key industries within the UK and South East Asia. The company's business segments are Services; Hargreaves Land; Unallocated and Hargreaves Raw Materials Services. It generates maximum revenue from the Services segment. The Services segment provides materials handling, mechanical and electrical engineering, land restoration, logistics and bulk earthmoving into the energy, environmental, infrastructure and industrial sectors.
73GF Score
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