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Elephant Holdings GroupHKSE:08635 +1.89%58 Operating Margin % is 9.50% as of Mar. 2026, which is 55% below its 10-year median of 21.27. GuruFocus rates HKSE:08635 with a GF Score™ of 58/100 and a GF Value™ of HK$0.71 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,825 Software companies, Elephant Holdings Group ranks better than 52.5% on this metric.
Elephant Holdings Group (HKSE:08635) 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.
Elephant Holdings Group Operating Margin % Related Terms
Elephant Holdings Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for Elephant Holdings Group'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:08635 vs QH, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Elephant Holdings Group'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.
Elephant Holdings Group Operating Margin % vs Software Industry
For the Software industry and Technology sector, Elephant Holdings Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Elephant Holdings Group's Operating Margin % falls into.
Elephant Holdings Group 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.
Elephant Holdings Group'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.
Elephant Holdings Group (HKSE:08635) has a Operating Margin % of 9.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Elephant Holdings Group and its competitors. This is 55% below median its historical median of 21.27. According to the industry distribution chart, Elephant Holdings Group ranks #1342 out of 2825 companies in the Software industry, placing it in the top 47.5%.
Is Elephant Holdings Group's Operating Margin % too high?
Elephant Holdings Group's current Operating Margin % of 9.50% is 55% below median its 10-year median of 21.27. The Software industry median Operating Margin % is 3.95. Elephant Holdings Group's value of 9.50% is 140.5% above this industry median. Based on the distribution chart, Elephant Holdings Group ranks #1342 out of 2825 companies in the Software industry, which is above the industry midpoint. Overall, Elephant Holdings Group has a GF Score™ of 58/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Elephant Holdings Group's Operating Margin % compare to QH and SHOP?
According to the Software industry distribution chart, Elephant Holdings Group ranks #1342 out of 2825 companies for Operating Margin %. This puts Elephant Holdings Group in the upper half of its industry. The industry median Operating Margin % is 3.95. Elephant Holdings Group's value of 9.50% is 140.5% above this benchmark. While the company's 10-year median is 21.27 vs. the industry median of 3.95, Elephant Holdings Group 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 Software company?
The median Operating Margin % among Software companies is 3.95, based on 2,825 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. Elephant Holdings Group's current Operating Margin % of 9.50% is 140.5% 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 Elephant Holdings Group and its competitors. For the Software industry, the median Operating Margin % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Elephant Holdings Group's current Operating Margin % is 9.50%, which is 55% below median its own 10-year median of 21.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Elephant Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Elephant Holdings Group (HKSE:08635) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.71, compared to a current price of HK$0.27 — trading 62% below its estimated fair value. The current Operating Margin % is 9.50%, which is 55% below median its 10-year median of 21.27 and 140.5% above the Software industry median of 3.95. Elephant Holdings Group's overall GF Score™ is 58/100 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 Elephant Holdings Group (HKSE:08635), the current Operating Margin % is 9.50% 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 Elephant Holdings Group (HKSE:08635) Overvalued in 2026?
Based on GuruFocus' analysis, Elephant Holdings Group stock appears to be undervalued.
The current stock price of HK$0.27 is trading 62% below its estimated GF Value™ of HK$0.71.
GuruFocus considers Elephant Holdings Group to be Possible Value Trap.
Key valuation signals for HKSE:08635:
Operating Margin %: 9.50% (55% below median its 10-year median of 21.27)
GF Value™: HK$0.71 vs. price of HK$0.27 (62% below fair value)
Industry Position: 140.5% above the Software median (#1342 of 2825)
No single metric tells the full story. See the HKSE:08635 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Elephant Holdings Group Ltd is a Hong Kong-based financial trading solution provider, principally engaged in the development and provision of financial trading solutions, as well as the development and supply of resource allocation, planning, scheduling, and management software and services. The company mainly provides comprehensive and integrated financial trading solutions that enable the trading of OTC-traded financial instruments, stock exchange-traded financial instruments, and fund management to brokerage firms and wealth management companies. The Group has two reportable operating segments: Financial trading solutions and other IT services, and Bullion trading services, and the majority of its revenue is generated from the Financial trading solutions and other IT services segment.
58GF Score
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