Hong Kong and China Gas CoHOKCY +10.86%54 Operating Margin % is 13.04% as of Dec. 2025, which is 18% below its 10-year median of 15.89. GuruFocus rates HOKCY with a GF Score™ of 54/100 and a GF Value™ of $0.75 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 499 Utilities - Regulated companies, Hong Kong and China Gas Co ranks worse than 50.1% on this metric.
Hong Kong and China Gas Co (OTCPK:HOKCY) 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.
Hong Kong and China Gas Co Operating Margin % Related Terms
Hong Kong and China Gas 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.
Hong Kong and China Gas Co Operating Margin % Chart
For the Utilities - Regulated Gas subindustry, Hong Kong and China Gas 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.
Hong Kong and China Gas Co Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Hong Kong and China Gas Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hong Kong and China Gas Co's Operating Margin % falls into.
Hong Kong and China Gas 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.
Hong Kong and China Gas Co'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.
Hong Kong and China Gas Co (HOKCY) has a Operating Margin % of 13.04% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hong Kong and China Gas Co and its competitors. This is 18% below median its historical median of 15.89. Over the past decade, Hong Kong and China Gas Co's Operating Margin % has ranged from 13.61 to 24.21. According to the industry distribution chart, Hong Kong and China Gas Co ranks #250 out of 499 companies in the Utilities - Regulated industry, placing it in the top 50.1%.
Is Hong Kong and China Gas Co's Operating Margin % too high?
Hong Kong and China Gas Co's current Operating Margin % of 13.04% is 18% below median its 10-year median of 15.89. Over the past 10 years, this metric has ranged from a low of 13.61 to a high of 24.21. The Utilities - Regulated industry median Operating Margin % is 14.97. Hong Kong and China Gas Co's value of 13.04% is 12.9% below this industry median. Based on the distribution chart, Hong Kong and China Gas Co ranks #250 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Hong Kong and China Gas Co has a GF Score™ of 54/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hong Kong and China Gas Co's Operating Margin % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Hong Kong and China Gas Co ranks #250 out of 499 companies for Operating Margin %. This places Hong Kong and China Gas Co in the lower half of its industry. The industry median Operating Margin % is 14.97. Hong Kong and China Gas Co's value of 13.04% is 12.9% below this benchmark. Historically, Hong Kong and China Gas Co's own Operating Margin % has ranged from 13.61 to 24.21 over the past decade. While the company's 10-year median is 15.89 vs. the industry median of 14.97, Hong Kong and China Gas Co 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Hong Kong and China Gas Co's current Operating Margin % of 13.04% is 12.9% 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 Hong Kong and China Gas Co and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hong Kong and China Gas Co's current Operating Margin % is 13.04%, which is 18% below median its own 10-year median of 15.89. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hong Kong and China Gas Co stock overvalued right now?
Based on GuruFocus' analysis, Hong Kong and China Gas Co (HOKCY) is currently considered Modestly Overvalued. The stock's GF Value™ is $0.75, compared to a current price of $0.90 — trading 19.7% above its estimated fair value. The current Operating Margin % is 13.04%, which is 18% below median its 10-year median of 15.89 and 12.9% below the Utilities - Regulated industry median of 14.97. Hong Kong and China Gas Co's overall GF Score™ is 54/100 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 Hong Kong and China Gas Co (HOKCY), the current Operating Margin % is 13.04% 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 Hong Kong and China Gas Co (HOKCY) Overvalued in 2026?
Based on GuruFocus' analysis, Hong Kong and China Gas Co stock appears to be overvalued.
The current stock price of $0.90 is trading 19.7% above its estimated GF Value™ of $0.75.
GuruFocus considers Hong Kong and China Gas Co to be Modestly Overvalued.
Key valuation signals for HOKCY:
Operating Margin %: 13.04% (18% below median its 10-year median of 15.89)
GF Value™: $0.75 vs. price of $0.90 (19.7% above fair value)
Industry Position: 12.9% below the Utilities - Regulated median (#250 of 499)
No single metric tells the full story. See the HOKCY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hong Kong and China Gas Co Ltd, is the oldest public utility company in Hong Kong. The company's core business comprises the production and distribution of town gas in Hong Kong, with a monopoly on distribution and retail. The company is also investing in water, upstream gas, and new energies. The Group's principal activities are the production, distribution, and marketing of gas and related products or services, water supply and waste treatment, renewable energy businesses, extended businesses, and fuels businesses (Green Fuels) in Hong Kong and the Chinese mainland. The company operates in three segments: Gas, water and waste treatment, renewable energy, extended businesses, and related businesses, Green Fuels, and Property.
54GF Score
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