Henderson Land Development CoHLDCY +2.90%76 Operating Margin % is 14.93% as of Dec. 2025, which is 53% below its 10-year median of 31.54. GuruFocus rates HLDCY with a GF Score™ of 76/100 and a GF Value™ of $2.79 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,745 Real Estate companies, Henderson Land Development Co ranks better than 56.22% on this metric.
Henderson Land Development Co (OTCPK:HLDCY) 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.
Henderson Land Development Co Operating Margin % Related Terms
Henderson Land Development Co Operating Margin % Historical Data
* 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.
Henderson Land Development Co Operating Margin % Chart
Henderson Land Development Co Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, Henderson Land Development Co'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.
Henderson Land Development Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Henderson Land Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Henderson Land Development Co's Operating Margin % falls into.
Henderson Land Development Co 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.
* 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.
Henderson Land Development Co (HLDCY) has a Operating Margin % of 14.93% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Henderson Land Development Co and its competitors. This is 53% below median its historical median of 31.54. Over the past decade, Henderson Land Development Co's Operating Margin % has ranged from 16.89 to 50.08. According to the industry distribution chart, Henderson Land Development Co ranks #764 out of 1745 companies in the Real Estate industry, placing it in the top 43.8%.
Is Henderson Land Development Co's Operating Margin % too high?
Henderson Land Development Co's current Operating Margin % of 14.93% is 53% below median its 10-year median of 31.54. Over the past 10 years, this metric has ranged from a low of 16.89 to a high of 50.08. The Real Estate industry median Operating Margin % is 13.23. Henderson Land Development Co's value of 14.93% is 12.8% above this industry median. Based on the distribution chart, Henderson Land Development Co ranks #764 out of 1745 companies in the Real Estate industry, which is above the industry midpoint. Overall, Henderson Land Development Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Henderson Land Development Co's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Henderson Land Development Co ranks #764 out of 1745 companies for Operating Margin %. This puts Henderson Land Development Co in the upper half of its industry. The industry median Operating Margin % is 13.23. Henderson Land Development Co's value of 14.93% is 12.8% above this benchmark. Historically, Henderson Land Development Co's own Operating Margin % has ranged from 16.89 to 50.08 over the past decade. While the company's 10-year median is 31.54 vs. the industry median of 13.23, Henderson Land Development Co 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.23, based on 1,745 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. Henderson Land Development Co's current Operating Margin % of 14.93% is 12.8% 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 Henderson Land Development Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henderson Land Development Co's current Operating Margin % is 14.93%, which is 53% below median its own 10-year median of 31.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henderson Land Development Co stock overvalued right now?
Based on GuruFocus' analysis, Henderson Land Development Co (HLDCY) is currently considered Modestly Overvalued. The stock's GF Value™ is $2.79, compared to a current price of $3.19 — trading 14.3% above its estimated fair value. The current Operating Margin % is 14.93%, which is 53% below median its 10-year median of 31.54 and 12.8% above the Real Estate industry median of 13.23. Henderson Land Development Co's overall GF Score™ is 76/100 with 7 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 Henderson Land Development Co (HLDCY), the current Operating Margin % is 14.93% 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 Henderson Land Development Co (HLDCY) Overvalued in 2026?
Based on GuruFocus' analysis, Henderson Land Development Co stock appears to be overvalued.
The current stock price of $3.19 is trading 14.3% above its estimated GF Value™ of $2.79.
GuruFocus considers Henderson Land Development Co to be Modestly Overvalued.
Key valuation signals for HLDCY:
Operating Margin %: 14.93% (53% below median its 10-year median of 31.54)
GF Value™: $2.79 vs. price of $3.19 (14.3% above fair value)
Industry Position: 12.8% above the Real Estate median (#764 of 1745)
No single metric tells the full story. See the HLDCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henderson Land Development Co Business Description
Henderson Land Development is a leading property developer in Hong Kong with a focus on urban redevelopment and farmland conversion. The company was founded in 1976, listed in 1981. Henderson Land directly controls four listed entities, including a 69% stake in Henderson Investment, a 41.5% stake in Hong Kong and China Gas, a 33.4% stake in Hong Kong Ferry, and a 50.1% stake in Miramar Hotel & Investment.
76GF Score
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