Hisamitsu Pharmaceutical CoHTSUY 84 Operating Margin % is 11.32% as of Nov. 2025, which is 2% below its 10-year median of 11.55. GuruFocus rates HTSUY with a GF Score™ of 84/100 and a GF Value™ of $5.41 (Significantly Undervalued). Among 955 Drug Manufacturers companies, Hisamitsu Pharmaceutical Co ranks better than 58.12% on this metric.
Hisamitsu Pharmaceutical Co (OTCPK:HTSUY) 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.
Hisamitsu Pharmaceutical Co Operating Margin % Related Terms
Hisamitsu Pharmaceutical 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.
Hisamitsu Pharmaceutical Co Operating Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Hisamitsu Pharmaceutical 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.
Hisamitsu Pharmaceutical Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hisamitsu Pharmaceutical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hisamitsu Pharmaceutical Co's Operating Margin % falls into.
Hisamitsu Pharmaceutical 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.
Hisamitsu Pharmaceutical Co's Operating Margin % for the fiscal year that ended in Feb. 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.
Hisamitsu Pharmaceutical Co (HTSUY) has a Operating Margin % of 11.32% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hisamitsu Pharmaceutical Co and its competitors. This is near median its historical median of 11.55. Over the past decade, Hisamitsu Pharmaceutical Co's Operating Margin % has ranged from 7.77 to 18.15. According to the industry distribution chart, Hisamitsu Pharmaceutical Co ranks #400 out of 955 companies in the Drug Manufacturers industry, placing it in the top 41.9%.
Is Hisamitsu Pharmaceutical Co's Operating Margin % too high?
Hisamitsu Pharmaceutical Co's current Operating Margin % of 11.32% is near median its 10-year median of 11.55. Over the past 10 years, this metric has ranged from a low of 7.77 to a high of 18.15. The Drug Manufacturers industry median Operating Margin % is 7.45. Hisamitsu Pharmaceutical Co's value of 11.32% is 51.9% above this industry median. Based on the distribution chart, Hisamitsu Pharmaceutical Co ranks #400 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Hisamitsu Pharmaceutical Co has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hisamitsu Pharmaceutical Co's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Hisamitsu Pharmaceutical Co ranks #400 out of 955 companies for Operating Margin %. This puts Hisamitsu Pharmaceutical Co in the upper half of its industry. The industry median Operating Margin % is 7.45. Hisamitsu Pharmaceutical Co's value of 11.32% is 51.9% above this benchmark. Historically, Hisamitsu Pharmaceutical Co's own Operating Margin % has ranged from 7.77 to 18.15 over the past decade. While the company's 10-year median is 11.55 vs. the industry median of 7.45, Hisamitsu Pharmaceutical 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Hisamitsu Pharmaceutical Co's current Operating Margin % of 11.32% is 51.9% 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 Hisamitsu Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hisamitsu Pharmaceutical Co's current Operating Margin % is 11.32%, which is near median its own 10-year median of 11.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hisamitsu Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Hisamitsu Pharmaceutical Co (HTSUY) is currently considered Significantly Undervalued. The stock's GF Value™ is $5.41, compared to a current price of $2.94 — trading 45.7% below its estimated fair value. The current Operating Margin % is 11.32%, which is near median its 10-year median of 11.55 and 51.9% above the Drug Manufacturers industry median of 7.45. Hisamitsu Pharmaceutical Co's overall GF Score™ is 84/100. 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 Hisamitsu Pharmaceutical Co (HTSUY), the current Operating Margin % is 11.32% as of Nov. 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 Hisamitsu Pharmaceutical Co (HTSUY) Overvalued in 2026?
Based on GuruFocus' analysis, Hisamitsu Pharmaceutical Co stock appears to be undervalued.
The current stock price of $2.94 is trading 45.7% below its estimated GF Value™ of $5.41.
GuruFocus considers Hisamitsu Pharmaceutical Co to be Significantly Undervalued.
Key valuation signals for HTSUY:
Operating Margin %: 11.32% (near median its 10-year median of 11.55)
GF Value™: $5.41 vs. price of $2.94 (45.7% below fair value)
Industry Position: 51.9% above the Drug Manufacturers median (#400 of 955)
No single metric tells the full story. See the HTSUY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hisamitsu Pharmaceutical Co Inc is engaged in the research, development, manufacturing, procurement, and sale of pharmaceutical products. The company operates a single business segment, focusing on medical and general pharmaceuticals both in Japan and overseas. It markets drugs under the Salonpas, Nobinobi / Salonsip, Butenalock, and Mohrus brands, which mainly serve topical medication needs with pain relief creams, gels, sprays, lotions, and ointments.
84GF Score
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