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.
PT Hanjaya Mandalampoerna Tbk Operating Margin % Related Terms
PT Hanjaya Mandalampoerna Tbk 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.
ISX:HMSP vs PM, MO, TPB: Operating Margin % Comparison
For the Tobacco subindustry, PT Hanjaya Mandalampoerna Tbk'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.
PT Hanjaya Mandalampoerna Tbk Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, PT Hanjaya Mandalampoerna Tbk's Operating Margin % distribution charts can be found below:
* The bar in red indicates where PT Hanjaya Mandalampoerna Tbk'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.
* 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.
PT Hanjaya Mandalampoerna Tbk (ISX:HMSP) has a Operating Margin % of 9.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on PT Hanjaya Mandalampoerna Tbk and its competitors. This is near median its historical median of 9.86. Over the past decade, PT Hanjaya Mandalampoerna Tbk's Operating Margin % has ranged from 6.53 to 16.78. According to the industry distribution chart, PT Hanjaya Mandalampoerna Tbk ranks #26 out of 48 companies in the Tobacco Products industry, placing it in the top 54.2%.
Is PT Hanjaya Mandalampoerna Tbk's Operating Margin % too high?
PT Hanjaya Mandalampoerna Tbk's current Operating Margin % of 9.15% is near median its 10-year median of 9.86. Over the past 10 years, this metric has ranged from a low of 6.53 to a high of 16.78. The Tobacco Products industry median Operating Margin % is 9.37. PT Hanjaya Mandalampoerna Tbk's value of 9.15% is 2.3% below this industry median. Based on the distribution chart, PT Hanjaya Mandalampoerna Tbk ranks #26 out of 48 companies in the Tobacco Products industry, which is below the industry midpoint. Overall, PT Hanjaya Mandalampoerna Tbk has a GF Score™ of 90/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does PT Hanjaya Mandalampoerna Tbk's Operating Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, PT Hanjaya Mandalampoerna Tbk ranks #26 out of 48 companies for Operating Margin %. This places PT Hanjaya Mandalampoerna Tbk in the lower half of its industry. The industry median Operating Margin % is 9.37. PT Hanjaya Mandalampoerna Tbk's value of 9.15% is 2.3% below this benchmark. Historically, PT Hanjaya Mandalampoerna Tbk's own Operating Margin % has ranged from 6.53 to 16.78 over the past decade. While the company's 10-year median is 9.86 vs. the industry median of 9.37, PT Hanjaya Mandalampoerna Tbk 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 Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 9.37, based on 48 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. PT Hanjaya Mandalampoerna Tbk's current Operating Margin % of 9.15% is 2.3% 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 PT Hanjaya Mandalampoerna Tbk and its competitors. For the Tobacco Products industry, the median Operating Margin % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PT Hanjaya Mandalampoerna Tbk's current Operating Margin % is 9.15%, which is near median its own 10-year median of 9.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PT Hanjaya Mandalampoerna Tbk stock overvalued right now?
Based on GuruFocus' analysis, PT Hanjaya Mandalampoerna Tbk (ISX:HMSP) is currently considered Modestly Undervalued. The stock's GF Value™ is Rp733.48, compared to a current price of Rp650.00 — trading 11.4% below its estimated fair value. The current Operating Margin % is 9.15%, which is near median its 10-year median of 9.86 and 2.3% below the Tobacco Products industry median of 9.37. PT Hanjaya Mandalampoerna Tbk's overall GF Score™ is 90/100 with 5 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 PT Hanjaya Mandalampoerna Tbk (ISX:HMSP), the current Operating Margin % is 9.15% 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 PT Hanjaya Mandalampoerna Tbk (ISX:HMSP) Overvalued in 2026?
Based on GuruFocus' analysis, PT Hanjaya Mandalampoerna Tbk stock appears to be undervalued.
The current stock price of Rp650.00 is trading 11.4% below its estimated GF Value™ of Rp733.48.
GuruFocus considers PT Hanjaya Mandalampoerna Tbk to be Modestly Undervalued.
Key valuation signals for ISX:HMSP:
Operating Margin %: 9.15% (near median its 10-year median of 9.86)
GF Value™: Rp733.48 vs. price of Rp650.00 (11.4% below fair value)
Industry Position: 2.3% below the Tobacco Products median (#26 of 48)
No single metric tells the full story. See the ISX:HMSP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
PT Hanjaya Mandalampoerna Tbk Business Description
PT Hanjaya Mandala Sampoerna Tbk is an Indonesian tobacco company. The company produces a number of brands of cigarettes and is well known, such as Sampoerna A, Sampoerna Kretek, Malboro, Magnum, Dji Sam Soe, and others. The scope of activities of the company comprises, among others manufacturing, trading, and distributing cigarettes. The company's flagship brand is Dji Sam Soe Kretek.
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