Hitachi Construction Machinery Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Hitachi Construction Machinery Co's Operating Margin % or its related term are showing as below:
FRA:HCM'
s Operating Margin % Range Over the Past 10 Years
Min: 3.13 Med: 9.94 Max: 11.57
Current: 9.26
FRA:HCM's Operating Margin % is ranked better than 62.2% of 209
companies
in the Farm & Heavy Construction Machinery industry
Industry Median: 6.78
vs FRA:HCM: 9.26
Hitachi Construction Machinery Co (FRA:HCM) 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.
Hitachi Construction Machinery Co Operating Margin % Related Terms
Hitachi Construction Machinery Co 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.
Hitachi Construction Machinery Co Operating Margin % Chart
FRA:HCM vs CAT, DE, PCAR: Operating Margin % Comparison
For the Farm & Heavy Construction Machinery subindustry, Hitachi Construction Machinery Co'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.
Hitachi Construction Machinery Co Operating Margin % vs Farm & Heavy Construction Machinery Industry
For the Farm & Heavy Construction Machinery industry and Industrials sector, Hitachi Construction Machinery Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hitachi Construction Machinery Co's Operating Margin % falls into.
Hitachi Construction Machinery Co 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.
Hitachi Construction Machinery Co (FRA:HCM) has a Operating Margin % of 7.51% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hitachi Construction Machinery Co and its competitors. This is 24% below median its historical median of 9.94. Over the past decade, Hitachi Construction Machinery Co's Operating Margin % has ranged from 3.13 to 11.57. According to the industry distribution chart, Hitachi Construction Machinery Co ranks #79 out of 209 companies in the Farm & Heavy Construction Machinery industry, placing it in the top 37.8%.
Is Hitachi Construction Machinery Co's Operating Margin % too high?
Hitachi Construction Machinery Co's current Operating Margin % of 7.51% is 24% below median its 10-year median of 9.94. Over the past 10 years, this metric has ranged from a low of 3.13 to a high of 11.57. The Farm & Heavy Construction Machinery industry median Operating Margin % is 6.78. Hitachi Construction Machinery Co's value of 7.51% is 10.8% above this industry median. Based on the distribution chart, Hitachi Construction Machinery Co ranks #79 out of 209 companies in the Farm & Heavy Construction Machinery industry, which is above the industry midpoint. Overall, Hitachi Construction Machinery Co has a GF Score™ of 86/100, reflecting its overall financial health beyond just this single metric.
How does Hitachi Construction Machinery Co's Operating Margin % compare to CAT and DE?
According to the Farm & Heavy Construction Machinery industry distribution chart, Hitachi Construction Machinery Co ranks #79 out of 209 companies for Operating Margin %. This puts Hitachi Construction Machinery Co in the upper half of its industry. The industry median Operating Margin % is 6.78. Hitachi Construction Machinery Co's value of 7.51% is 10.8% above this benchmark. Historically, Hitachi Construction Machinery Co's own Operating Margin % has ranged from 3.13 to 11.57 over the past decade. While the company's 10-year median is 9.94 vs. the industry median of 6.78, Hitachi Construction Machinery Co 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 Farm & Heavy Construction Machinery company?
The median Operating Margin % among Farm & Heavy Construction Machinery companies is 6.78, based on 209 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. Hitachi Construction Machinery Co's current Operating Margin % of 7.51% is 10.8% 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 Hitachi Construction Machinery Co and its competitors. For the Farm & Heavy Construction Machinery industry, the median Operating Margin % is 6.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hitachi Construction Machinery Co's current Operating Margin % is 7.51%, which is 24% below median its own 10-year median of 9.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hitachi Construction Machinery Co stock overvalued right now?
Hitachi Construction Machinery Co (FRA:HCM) has a current Operating Margin % of 7.51%. The stock's GF Value™ is €23.89, compared to a current price of €28.52 — trading 19.4% above its estimated fair value. The current Operating Margin % is 7.51%, which is 24% below median its 10-year median of 9.94 and 10.8% above the Farm & Heavy Construction Machinery industry median of 6.78. Hitachi Construction Machinery Co's overall GF Score™ is 86/100 with 2 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 Hitachi Construction Machinery Co (FRA:HCM), the current Operating Margin % is 7.51% 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 Hitachi Construction Machinery Co (FRA:HCM) Overvalued in 2026?
Based on GuruFocus' analysis, Hitachi Construction Machinery Co stock appears to be overvalued.
The current stock price of €28.52 is trading 19.4% above its estimated GF Value™ of €23.89.
Key valuation signals for FRA:HCM:
Operating Margin %: 7.51% (24% below median its 10-year median of 9.94)
GF Value™: €23.89 vs. price of €28.52 (19.4% above fair value)
Industry Position: 10.8% above the Farm & Heavy Construction Machinery median (#79 of 209)
No single metric tells the full story. See the FRA:HCM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hitachi Construction Machinery Co Business Description
Hitachi Construction Machinery manufactures and sells construction and mining machinery, and provides related services such as parts supply, rentals, and others. HCM was established in 1970 as a subsidiary of Hitachi, but its origins date back to 1949 when it introduced Japan's first mechanical excavator. The company's main products include hydraulic excavators for mining and construction, rigid dump trucks, and wheel loaders. As of August 2022, Hitachi is no longer the parent company of HCM, after selling 26% of its stake to HCJI Holdings, a joint venture between Itochu and Japan Industrial Partners. Currently, Hitachi has a 25.42% stake in Hitachi Construction Machinery as an equity-method affiliate. HCM is based in Tokyo.
86GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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