Hirose Electric CoHRSEF 88 Operating Margin % is 19.18% as of Mar. 2026, which is 11% below its 10-year median of 21.66. GuruFocus rates HRSEF with a GF Score™ of 88/100 and a GF Value™ of $97.82. The stock has 6 warning signs investors should review. Among 2,472 Hardware companies, Hirose Electric Co ranks better than 92.48% on this metric.
Hirose Electric Co (OTCPK:HRSEF) 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.
Hirose Electric Co Operating Margin % Related Terms
Hirose Electric Co Operating Margin % Historical Data
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The historical data trend for Hirose Electric Co'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.
HRSEF vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Hirose Electric 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.
Hirose Electric Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Hirose Electric Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hirose Electric Co'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.
Hirose Electric Co'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.
Hirose Electric Co (HRSEF) has a Operating Margin % of 19.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hirose Electric Co and its competitors. This is 11% below median its historical median of 21.66. Over the past decade, Hirose Electric Co's Operating Margin % has ranged from 16.72 to 25.52. According to the industry distribution chart, Hirose Electric Co ranks #186 out of 2472 companies in the Hardware industry, placing it in the top 7.5%.
Is Hirose Electric Co's Operating Margin % too high?
Hirose Electric Co's current Operating Margin % of 19.18% is 11% below median its 10-year median of 21.66. Over the past 10 years, this metric has ranged from a low of 16.72 to a high of 25.52. The Hardware industry median Operating Margin % is 3.80. Hirose Electric Co's value of 19.18% is 404.7% above this industry median. Based on the distribution chart, Hirose Electric Co ranks #186 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Hirose Electric Co has a GF Score™ of 88/100, reflecting its overall financial health beyond just this single metric.
How does Hirose Electric Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Hirose Electric Co ranks #186 out of 2472 companies for Operating Margin %. This places Hirose Electric Co in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Hirose Electric Co's value of 19.18% is 404.7% above this benchmark. Historically, Hirose Electric Co's own Operating Margin % has ranged from 16.72 to 25.52 over the past decade. While the company's 10-year median is 21.66 vs. the industry median of 3.80, Hirose Electric 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 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. Hirose Electric Co's current Operating Margin % of 19.18% is 404.7% 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 Hirose Electric Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hirose Electric Co's current Operating Margin % is 19.18%, which is 11% below median its own 10-year median of 21.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hirose Electric Co stock overvalued right now?
Hirose Electric Co (HRSEF) has a current Operating Margin % of 19.18%. The stock's GF Value™ is $97.82, compared to a current price of $131.95 — trading 34.9% above its estimated fair value. The current Operating Margin % is 19.18%, which is 11% below median its 10-year median of 21.66 and 404.7% above the Hardware industry median of 3.80. Hirose Electric Co's overall GF Score™ is 88/100 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 Hirose Electric Co (HRSEF), the current Operating Margin % is 19.18% 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 Hirose Electric Co (HRSEF) Overvalued in 2026?
Based on GuruFocus' analysis, Hirose Electric Co stock appears to be overvalued.
The current stock price of $131.95 is trading 34.9% above its estimated GF Value™ of $97.82.
Key valuation signals for HRSEF:
Operating Margin %: 19.18% (11% below median its 10-year median of 21.66)
GF Value™: $97.82 vs. price of $131.95 (34.9% above fair value)
Industry Position: 404.7% above the Hardware median (#186 of 2472)
No single metric tells the full story. See the HRSEF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hirose Electric Co Ltd is engaged in the production and sale of connectors and related products. The company's operations are organized into two reportable segments: Multipole connectors and Coaxial connectors. Multipole connectors include circular, rectangular, ribbon cable, printed circuit board, and flexible printed circuit connectors, while Coaxial connectors are high-performance connectors for high-frequency and optical signal transmission. It generates the majority of its revenue from the Multipole connector segment.
88GF Score
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