Power Assets HoldingsHGKGY +5.05%65 Operating Margin % is 94.48% as of Dec. 2025, which is 1% below its 10-year median of 95.49. GuruFocus rates HGKGY with a GF Score™ of 65/100 and a GF Value™ of $3.74 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, Power Assets Holdings ranks better than 98.56% on this metric.
Power Assets Holdings (OTCPK:HGKGY) 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.
Power Assets Holdings Operating Margin % Related Terms
Power Assets Holdings Operating Margin % Historical Data
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The historical data trend for Power Assets 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.
HGKGY vs CEG, VST, NRG: Operating Margin % Comparison
For the Utilities - Independent Power Producers subindustry, Power Assets 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.
Power Assets Holdings Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Power Assets Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Power Assets Holdings's Operating Margin % falls into.
Power Assets Holdings 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.
Power Assets 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.
Power Assets Holdings (HGKGY) has a Operating Margin % of 94.48% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Power Assets Holdings and its competitors. This is near median its historical median of 95.49. Over the past decade, Power Assets Holdings' Operating Margin % has ranged from 89.40 to 98.33. According to the industry distribution chart, Power Assets Holdings ranks #6 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 1.4%.
Is Power Assets Holdings' Operating Margin % too high?
Power Assets Holdings' current Operating Margin % of 94.48% is near median its 10-year median of 95.49. Over the past 10 years, this metric has ranged from a low of 89.40 to a high of 98.33. The Utilities - Independent Power Producers industry median Operating Margin % is 13.27. Power Assets Holdings' value of 94.48% is 612% above this industry median. Based on the distribution chart, Power Assets Holdings ranks #6 out of 417 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Power Assets Holdings has a GF Score™ of 65/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Power Assets Holdings' Operating Margin % compare to CEG and VST?
According to the Utilities - Independent Power Producers industry distribution chart, Power Assets Holdings ranks #6 out of 417 companies for Operating Margin %. This places Power Assets Holdings in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.27. Power Assets Holdings' value of 94.48% is 612% above this benchmark. Historically, Power Assets Holdings' own Operating Margin % has ranged from 89.40 to 98.33 over the past decade. While the company's 10-year median is 95.49 vs. the industry median of 13.27, Power Assets 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 an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.27, based on 417 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. Power Assets Holdings's current Operating Margin % of 94.48% is 612% 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 Power Assets Holdings and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Power Assets Holdings's current Operating Margin % is 94.48%, which is near median its own 10-year median of 95.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Power Assets Holdings stock overvalued right now?
Based on GuruFocus' analysis, Power Assets Holdings (HGKGY) is currently considered Significantly Overvalued. The stock's GF Value™ is $3.74, compared to a current price of $7.70 — trading 105.9% above its estimated fair value. The current Operating Margin % is 94.48%, which is near median its 10-year median of 95.49 and 612% above the Utilities - Independent Power Producers industry median of 13.27. Power Assets Holdings' overall GF Score™ is 65/100 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 Power Assets Holdings (HGKGY), the current Operating Margin % is 94.48% 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 Power Assets Holdings (HGKGY) Overvalued in 2026?
Based on GuruFocus' analysis, Power Assets Holdings stock appears to be overvalued.
The current stock price of $7.70 is trading 105.9% above its estimated GF Value™ of $3.74.
GuruFocus considers Power Assets Holdings to be Significantly Overvalued.
Key valuation signals for HGKGY:
Operating Margin %: 94.48% (near median its 10-year median of 95.49)
GF Value™: $3.74 vs. price of $7.70 (105.9% above fair value)
Industry Position: 612% above the Utilities - Independent Power Producers median (#6 of 417)
No single metric tells the full story. See the HGKGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Power Assets Holdings is an investment holding company with a focus on regulated utility assets. The firm owns a portfolio of regulated electricity and gas assets and similarly stable utilities in Hong Kong, the UK, Australia, Canada, the Netherlands, Thailand, and New Zealand. Profit from its regulated assets contributes around 80% of total income, with earnings from its UK and Australian assets totaling around 65% of group profit. The firm is part of CK Hutchison Holdings, a Hong Kong-based multinational conglomerate, and is currently 36% owned by CKI Holdings.
65GF Score
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