HKR InternationalHRKIF 62 Operating Margin % is 2.48% as of Sep. 2025, which is 86% below its 10-year median of 17.59. GuruFocus rates HRKIF with a GF Score™ of 62/100 and a GF Value™ of $0.41. The stock has 6 warning signs investors should review. Among 1,745 Real Estate companies, HKR International ranks worse than 76.45% on this metric.
HKR International (OTCPK:HRKIF) 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.
HKR International Operating Margin % Related Terms
HKR International Operating Margin % Historical Data
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The historical data trend for HKR International'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.
HKR International Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, HKR International'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.
HKR International Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, HKR International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where HKR International'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.
HKR International's Operating Margin % for the fiscal year that ended in Mar. 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.
HKR International (HRKIF) has a Operating Margin % of 2.48% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on HKR International and its competitors. This is 86% below median its historical median of 17.59. According to the industry distribution chart, HKR International ranks #1334 out of 1745 companies in the Real Estate industry, placing it in the top 76.4%.
Is HKR International's Operating Margin % too high?
HKR International's current Operating Margin % of 2.48% is 86% below median its 10-year median of 17.59. The Real Estate industry median Operating Margin % is 13.21. HKR International's value of 2.48% is 81.2% below this industry median. Based on the distribution chart, HKR International ranks #1334 out of 1745 companies in the Real Estate industry, which is in the bottom quartile relative to peers. Overall, HKR International has a GF Score™ of 62/100, reflecting its overall financial health beyond just this single metric.
How does HKR International's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, HKR International ranks #1334 out of 1745 companies for Operating Margin %. This places HKR International in the lower half of its industry. The industry median Operating Margin % is 13.21. HKR International's value of 2.48% is 81.2% below this benchmark. While the company's 10-year median is 17.59 vs. the industry median of 13.21, HKR International 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, 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. HKR International's current Operating Margin % of 2.48% is 81.2% 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 HKR International and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. HKR International's current Operating Margin % is 2.48%, which is 86% below median its own 10-year median of 17.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is HKR International stock overvalued right now?
HKR International (HRKIF) has a current Operating Margin % of 2.48%. The stock's GF Value™ is $0.41, compared to a current price of $0.29 — trading 30.5% below its estimated fair value. The current Operating Margin % is 2.48%, which is 86% below median its 10-year median of 17.59 and 81.2% below the Real Estate industry median of 13.21. HKR International's overall GF Score™ is 62/100 with 6 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 HKR International (HRKIF), the current Operating Margin % is 2.48% as of Sep. 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 HKR International (HRKIF) Overvalued in 2026?
Based on GuruFocus' analysis, HKR International stock appears to be undervalued.
The current stock price of $0.29 is trading 30.5% below its estimated GF Value™ of $0.41.
Key valuation signals for HRKIF:
Operating Margin %: 2.48% (86% below median its 10-year median of 17.59)
GF Value™: $0.41 vs. price of $0.29 (30.5% below fair value)
Industry Position: 81.2% below the Real Estate median (#1334 of 1745)
No single metric tells the full story. See the HRKIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
HKR International Ltd engages in the investment, development, and management of real estate properties across Asia. The company is headquartered in Hong Kong and earns the majority of its revenue domestically. The company has operations in mainland China, Japan, and the Southeast Asia region. HKR International operates through five segments: property development, property investment, Transportation services and property management, hotel operations, and Leisure businesses.
62GF Score
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