Kantone HoldingsHKSE:01059 +9.64%52 Operating Margin % is 3.61% as of Dec. 2025, which is 369% above its 10-year median of 0.77. GuruFocus rates HKSE:01059 with a GF Score™ of 52/100 and a GF Value™ of HK$0.25 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 2,810 Software companies, Kantone Holdings ranks worse than 55.2% 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.
Kantone Holdings Operating Margin % Related Terms
Kantone Holdings Operating Margin % Historical Data
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The historical data trend for Kantone 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.
HKSE:01059 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Kantone 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.
Kantone Holdings Operating Margin % vs Software Industry
For the Software industry and Technology sector, Kantone Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kantone 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.
Kantone Holdings's Operating Margin % for the fiscal year that ended in Jun. 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.
Kantone Holdings (HKSE:01059) has a Operating Margin % of 3.61% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kantone Holdings and its competitors. This is 369% above median its historical median of 0.77. According to the industry distribution chart, Kantone Holdings ranks #1551 out of 2810 companies in the Software industry, placing it in the top 55.2%.
Is Kantone Holdings' Operating Margin % too high?
Kantone Holdings' current Operating Margin % of 3.61% is 369% above median its 10-year median of 0.77. The Software industry median Operating Margin % is 3.89. Kantone Holdings' value of 3.61% is 7.1% below this industry median. Based on the distribution chart, Kantone Holdings ranks #1551 out of 2810 companies in the Software industry, which is below the industry midpoint. Overall, Kantone Holdings has a GF Score™ of 52/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kantone Holdings' Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Kantone Holdings ranks #1551 out of 2810 companies for Operating Margin %. This places Kantone Holdings in the lower half of its industry. The industry median Operating Margin % is 3.89. Kantone Holdings' value of 3.61% is 7.1% below this benchmark. While the company's 10-year median is 0.77 vs. the industry median of 3.89, Kantone 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 Software company?
The median Operating Margin % among Software companies is 3.89, based on 2,810 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. Kantone Holdings's current Operating Margin % of 3.61% is 7.1% 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 Kantone Holdings and its competitors. For the Software industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kantone Holdings's current Operating Margin % is 3.61%, which is 369% above median its own 10-year median of 0.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kantone Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kantone Holdings (HKSE:01059) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.25, compared to a current price of HK$0.46 — trading 82% above its estimated fair value. The current Operating Margin % is 3.61%, which is 369% above median its 10-year median of 0.77 and 7.1% below the Software industry median of 3.89. Kantone Holdings' overall GF Score™ is 52/100 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 Kantone Holdings (HKSE:01059), the current Operating Margin % is 3.61% 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 Kantone Holdings (HKSE:01059) Overvalued in 2026?
Based on GuruFocus' analysis, Kantone Holdings stock appears to be overvalued.
The current stock price of HK$0.46 is trading 82% above its estimated GF Value™ of HK$0.25.
GuruFocus considers Kantone Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:01059:
Operating Margin %: 3.61% (369% above median its 10-year median of 0.77)
GF Value™: HK$0.25 vs. price of HK$0.46 (82% above fair value)
Industry Position: 7.1% below the Software median (#1551 of 2810)
No single metric tells the full story. See the HKSE:01059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kantone Holdings Ltd is an investment holding company. The company's operating segment includes Sales of cultural products; Technology: System sales including software licensing and services and Technology: Leasing of system products. It generates maximum revenue from the Technology: System sales including software licensing and services segment. Geographically, it derives a majority of its revenue from Europe (UK and Germany).
52GF Score
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