Johnson Electric HoldingsJEHLY 81 Operating Margin % is 5.37% as of Mar. 2026, which is 27% below its 10-year median of 7.33. GuruFocus rates JEHLY with a GF Score™ of 81/100 and a GF Value™ of $22.34 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Johnson Electric Holdings ranks better than 59.4% on this metric.
Johnson Electric Holdings (OTCPK:JEHLY) 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.
Johnson Electric Holdings Operating Margin % Related Terms
Johnson Electric Holdings 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.
Johnson Electric Holdings Operating Margin % Chart
For the Auto Parts subindustry, Johnson Electric Holdings'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.
Johnson Electric Holdings Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Johnson Electric Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Johnson Electric Holdings's Operating Margin % falls into.
Johnson Electric Holdings 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.
Johnson Electric Holdings'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.
Johnson Electric Holdings (JEHLY) has a Operating Margin % of 5.37% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Johnson Electric Holdings and its competitors. This is 27% below median its historical median of 7.33. Over the past decade, Johnson Electric Holdings' Operating Margin % has ranged from 4.33 to 9.60. According to the industry distribution chart, Johnson Electric Holdings ranks #538 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 40.6%.
Is Johnson Electric Holdings' Operating Margin % too high?
Johnson Electric Holdings' current Operating Margin % of 5.37% is 27% below median its 10-year median of 7.33. Over the past 10 years, this metric has ranged from a low of 4.33 to a high of 9.60. The Vehicles & Parts industry median Operating Margin % is 4.86. Johnson Electric Holdings' value of 5.37% is 10.5% above this industry median. Based on the distribution chart, Johnson Electric Holdings ranks #538 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Johnson Electric Holdings has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Johnson Electric Holdings' Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Johnson Electric Holdings ranks #538 out of 1325 companies for Operating Margin %. This puts Johnson Electric Holdings in the upper half of its industry. The industry median Operating Margin % is 4.86. Johnson Electric Holdings' value of 5.37% is 10.5% above this benchmark. Historically, Johnson Electric Holdings' own Operating Margin % has ranged from 4.33 to 9.60 over the past decade. While the company's 10-year median is 7.33 vs. the industry median of 4.86, Johnson Electric Holdings 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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. Johnson Electric Holdings's current Operating Margin % of 5.37% is 10.5% 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 Johnson Electric Holdings and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Johnson Electric Holdings's current Operating Margin % is 5.37%, which is 27% below median its own 10-year median of 7.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Johnson Electric Holdings stock overvalued right now?
Based on GuruFocus' analysis, Johnson Electric Holdings (JEHLY) is currently considered Modestly Overvalued. The stock's GF Value™ is $22.34, compared to a current price of $24.77 — trading 10.9% above its estimated fair value. The current Operating Margin % is 5.37%, which is 27% below median its 10-year median of 7.33 and 10.5% above the Vehicles & Parts industry median of 4.86. Johnson Electric Holdings' overall GF Score™ is 81/100 with 2 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 Johnson Electric Holdings (JEHLY), the current Operating Margin % is 5.37% 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 Johnson Electric Holdings (JEHLY) Overvalued in 2026?
Based on GuruFocus' analysis, Johnson Electric Holdings stock appears to be overvalued.
The current stock price of $24.77 is trading 10.9% above its estimated GF Value™ of $22.34.
GuruFocus considers Johnson Electric Holdings to be Modestly Overvalued.
Key valuation signals for JEHLY:
Operating Margin %: 5.37% (27% below median its 10-year median of 7.33)
GF Value™: $22.34 vs. price of $24.77 (10.9% above fair value)
Industry Position: 10.5% above the Vehicles & Parts median (#538 of 1325)
No single metric tells the full story. See the JEHLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Johnson Electric Holdings Ltd operates manufacturing plants and sales operations throughout the world. It operates through two business units: Automotive Products Group (APG) and Industry Products Group (IPG). APG provides custom motors, actuators, switches, and motion sub-system solutions for critical automotive motion-related functions, while IPG provides motion products and customized solutions for commercial and industrial applications. Its products include AC Motors, Actuators (Automotive), Automotive Cooling Fan Motors, eDrives, EV Chargers, Flat Flexible and Flex Circuits, Gearmotors, and others. Geographically, the company generates revenue from North America, the People's Republic of China, South America, Asia-Pacific, Europe, the Middle East, and Africa.
81GF Score
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