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.
Hosken Consolidated Investments Operating Margin % Related Terms
Hosken Consolidated Investments 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.
JSE:HCI vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Hosken Consolidated Investments'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.
Hosken Consolidated Investments Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hosken Consolidated Investments's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hosken Consolidated Investments'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.
Hosken Consolidated Investments (JSE:HCI) has a Operating Margin % of 18.28% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hosken Consolidated Investments and its competitors. This is 10% below median its historical median of 20.26. Over the past decade, Hosken Consolidated Investments' Operating Margin % has ranged from 13.32 to 22.31. According to the industry distribution chart, Hosken Consolidated Investments ranks #77 out of 545 companies in the Conglomerates industry, placing it in the top 14.1%.
Is Hosken Consolidated Investments' Operating Margin % too high?
Hosken Consolidated Investments' current Operating Margin % of 18.28% is 10% below median its 10-year median of 20.26. Over the past 10 years, this metric has ranged from a low of 13.32 to a high of 22.31. The Conglomerates industry median Operating Margin % is 5.93. Hosken Consolidated Investments' value of 18.28% is 208.3% above this industry median. Based on the distribution chart, Hosken Consolidated Investments ranks #77 out of 545 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Hosken Consolidated Investments has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hosken Consolidated Investments' Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hosken Consolidated Investments ranks #77 out of 545 companies for Operating Margin %. This places Hosken Consolidated Investments in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.93. Hosken Consolidated Investments' value of 18.28% is 208.3% above this benchmark. Historically, Hosken Consolidated Investments' own Operating Margin % has ranged from 13.32 to 22.31 over the past decade. While the company's 10-year median is 20.26 vs. the industry median of 5.93, Hosken Consolidated Investments 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 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. Hosken Consolidated Investments's current Operating Margin % of 18.28% is 208.3% 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 Hosken Consolidated Investments and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hosken Consolidated Investments's current Operating Margin % is 18.28%, which is 10% below median its own 10-year median of 20.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hosken Consolidated Investments stock overvalued right now?
Based on GuruFocus' analysis, Hosken Consolidated Investments (JSE:HCI) is currently considered Fairly Valued. The stock's GF Value™ is R181.50, compared to a current price of R164.26 — trading 9.5% below its estimated fair value. The current Operating Margin % is 18.28%, which is 10% below median its 10-year median of 20.26 and 208.3% above the Conglomerates industry median of 5.93. Hosken Consolidated Investments' overall GF Score™ is 74/100 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 Hosken Consolidated Investments (JSE:HCI), the current Operating Margin % is 18.28% 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 Hosken Consolidated Investments (JSE:HCI) Overvalued in 2026?
Based on GuruFocus' analysis, Hosken Consolidated Investments stock appears to be undervalued.
The current stock price of R164.26 is trading 9.5% below its estimated GF Value™ of R181.50.
GuruFocus considers Hosken Consolidated Investments to be Fairly Valued.
Key valuation signals for JSE:HCI:
Operating Margin %: 18.28% (10% below median its 10-year median of 20.26)
GF Value™: R181.50 vs. price of R164.26 (9.5% below fair value)
Industry Position: 208.3% above the Conglomerates median (#77 of 545)
No single metric tells the full story. See the JSE:HCI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hosken Consolidated Investments Business Description
Hosken Consolidated Investments Ltd is an investment holdings company. The group is involved in a diverse group of investments including Media and broadcasting; Gaming; Transport; Properties; Coal mining; Branded products and manufacturing and other. It generates maximum revenue from the Branded products and manufacturing segment. Geographically, it operates in South Africa; Other African countries and Middle East; and Europe and United Kingdom.
74GF Score
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