Panasonic HoldingsFRA:MAT1 -5.20%60 Operating Margin % is 3.15% as of Mar. 2026, which is 25% below its 10-year median of 4.19. GuruFocus rates FRA:MAT1 with a GF Score™ of 60/100 and a GF Value™ of €7.91 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 2,472 Hardware companies, Panasonic Holdings ranks worse than 56.72% 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.
Panasonic Holdings Operating Margin % Related Terms
Panasonic Holdings Operating Margin % Historical Data
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The historical data trend for Panasonic 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.
For the Consumer Electronics subindustry, Panasonic 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.
Panasonic Holdings Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Panasonic Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Panasonic 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.
Panasonic Holdings's Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Panasonic Holdings (FRA:MAT1) has a Operating Margin % of 3.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Panasonic Holdings and its competitors. This is 25% below median its historical median of 4.19. Over the past decade, Panasonic Holdings' Operating Margin % has ranged from 2.61 to 5.01. According to the industry distribution chart, Panasonic Holdings ranks #1402 out of 2472 companies in the Hardware industry, placing it in the top 56.7%.
Is Panasonic Holdings' Operating Margin % too high?
Panasonic Holdings' current Operating Margin % of 3.15% is 25% below median its 10-year median of 4.19. Over the past 10 years, this metric has ranged from a low of 2.61 to a high of 5.01. The Hardware industry median Operating Margin % is 3.80. Panasonic Holdings' value of 3.15% is 17.1% below this industry median. Based on the distribution chart, Panasonic Holdings ranks #1402 out of 2472 companies in the Hardware industry, which is below the industry midpoint. Overall, Panasonic Holdings has a GF Score™ of 60/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Panasonic Holdings' Operating Margin % compare to AAPL?
According to the Hardware industry distribution chart, Panasonic Holdings ranks #1402 out of 2472 companies for Operating Margin %. This places Panasonic Holdings in the lower half of its industry. The industry median Operating Margin % is 3.80. Panasonic Holdings' value of 3.15% is 17.1% below this benchmark. Historically, Panasonic Holdings' own Operating Margin % has ranged from 2.61 to 5.01 over the past decade. While the company's 10-year median is 4.19 vs. the industry median of 3.80, Panasonic Holdings has consistently been below 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 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. Panasonic Holdings's current Operating Margin % of 3.15% is 17.1% below 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 Panasonic Holdings and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Panasonic Holdings's current Operating Margin % is 3.15%, which is 25% below median its own 10-year median of 4.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Panasonic Holdings stock overvalued right now?
Based on GuruFocus' analysis, Panasonic Holdings (FRA:MAT1) is currently considered Significantly Overvalued. The stock's GF Value™ is €7.91, compared to a current price of €22.90 — trading 189.4% above its estimated fair value. The current Operating Margin % is 3.15%, which is 25% below median its 10-year median of 4.19 and 17.1% below the Hardware industry median of 3.80. Panasonic Holdings' overall GF Score™ is 60/100 with 12 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 Panasonic Holdings (FRA:MAT1), the current Operating Margin % is 3.15% 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 Panasonic Holdings (FRA:MAT1) Overvalued in 2026?
Based on GuruFocus' analysis, Panasonic Holdings stock appears to be overvalued.
The current stock price of €22.90 is trading 189.4% above its estimated GF Value™ of €7.91.
GuruFocus considers Panasonic Holdings to be Significantly Overvalued.
Key valuation signals for FRA:MAT1:
Operating Margin %: 3.15% (25% below median its 10-year median of 4.19)
GF Value™: €7.91 vs. price of €22.90 (189.4% above fair value)
Industry Position: 17.1% below the Hardware median (#1402 of 2472)
No single metric tells the full story. See the FRA:MAT1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Panasonic Holdings Corp is engaged in the development, manufacture, and sale of a wide range of electronic and electrical products. The company operates through six segments. The Lifestyle segment provides home appliances such as refrigerators, air conditioners, and beauty and hair care devices. The Automotive segment offers in-vehicle infotainment systems, speaker systems, and advanced driver assistance systems. The Connect segment supplies communication systems, welding machines, and projectors. The Industry segment produces electronic components, motors, and factory automation equipment. The Energy segment develops and sells lithium-ion batteries, dry batteries, and small secondary batteries. The Others segment includes the sale of televisions, cameras, and building materials.
60GF Score
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