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G & M HoldingsHKSE:06038 +5.41%62 Operating Margin % is 11.49% as of Dec. 2025, which is 11% below its 10-year median of 12.91. GuruFocus rates HKSE:06038 with a GF Score™ of 62/100 and a GF Value™ of HK$0.19 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 1,776 Construction companies, G & M Holdings ranks better than 84.8% on this metric.
G & M Holdings (HKSE:06038) 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.
G & M Holdings Operating Margin % Related Terms
G & M Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for G & M 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:06038 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, G & M 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.
G & M Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, G & M Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where G & M 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.
G & M 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.
G & M Holdings (HKSE:06038) has a Operating Margin % of 11.49% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on G & M Holdings and its competitors. This is 11% below median its historical median of 12.91. Over the past decade, G & M Holdings' Operating Margin % has ranged from 10.36 to 22.80. According to the industry distribution chart, G & M Holdings ranks #270 out of 1776 companies in the Construction industry, placing it in the top 15.2%.
Is G & M Holdings' Operating Margin % too high?
G & M Holdings' current Operating Margin % of 11.49% is 11% below median its 10-year median of 12.91. Over the past 10 years, this metric has ranged from a low of 10.36 to a high of 22.80. The Construction industry median Operating Margin % is 5.94. G & M Holdings' value of 11.49% is 93.4% above this industry median. Based on the distribution chart, G & M Holdings ranks #270 out of 1776 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, G & M Holdings has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does G & M Holdings' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, G & M Holdings ranks #270 out of 1776 companies for Operating Margin %. This places G & M Holdings in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.94. G & M Holdings' value of 11.49% is 93.4% above this benchmark. Historically, G & M Holdings' own Operating Margin % has ranged from 10.36 to 22.80 over the past decade. While the company's 10-year median is 12.91 vs. the industry median of 5.94, G & M 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 a Construction company?
The median Operating Margin % among Construction companies is 5.94, based on 1,776 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. G & M Holdings's current Operating Margin % of 11.49% is 93.4% 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 G & M Holdings and its competitors. For the Construction industry, the median Operating Margin % is 5.94 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. G & M Holdings's current Operating Margin % is 11.49%, which is 11% below median its own 10-year median of 12.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is G & M Holdings stock overvalued right now?
Based on GuruFocus' analysis, G & M Holdings (HKSE:06038) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.19, compared to a current price of HK$0.39 — trading 105.3% above its estimated fair value. The current Operating Margin % is 11.49%, which is 11% below median its 10-year median of 12.91 and 93.4% above the Construction industry median of 5.94. G & M Holdings' overall GF Score™ is 62/100 with 1 warning sign 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 G & M Holdings (HKSE:06038), the current Operating Margin % is 11.49% 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 G & M Holdings (HKSE:06038) Overvalued in 2026?
Based on GuruFocus' analysis, G & M Holdings stock appears to be overvalued.
The current stock price of HK$0.39 is trading 105.3% above its estimated GF Value™ of HK$0.19.
GuruFocus considers G & M Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:06038:
Operating Margin %: 11.49% (11% below median its 10-year median of 12.91)
GF Value™: HK$0.19 vs. price of HK$0.39 (105.3% above fair value)
Industry Position: 93.4% above the Construction median (#270 of 1776)
No single metric tells the full story. See the HKSE:06038 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
G & M Holdings Ltd is an investment holding company engaged in construction business. The company provides one-stop design and builds solutions, as well as repairs and maintains services in relation to podium facade and curtain wall works in Hong Kong. The group operates in Hong Kong and the PRC. All of the group's revenue is derived from Hong Kong.
62GF 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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