Hudaco IndustriesJSE:HDC +0.45%91 Operating Margin % is 13.85% as of Nov. 2025, which is 20% above its 10-year median of 11.52. GuruFocus rates JSE:HDC with a GF Score™ of 91/100 and a GF Value™ of R189.20 (Fairly Valued). The stock has 1 warning sign investors should review. Among 157 Industrial Distribution companies, Hudaco Industries ranks better than 88.54% on this metric.
Hudaco Industries Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Hudaco Industries's Operating Margin % or its related term are showing as below:
JSE:HDC'
s Operating Margin % Range Over the Past 10 Years
Min: 8.17 Med: 11.52 Max: 12.49
Current: 12.49
JSE:HDC's Operating Margin % is ranked better than 88.54% of 157
companies
in the Industrial Distribution industry
Industry Median: 4.74
vs JSE:HDC: 12.49
Hudaco Industries's 5-Year Average Operating Margin % Growth Rate was 6.70% per year.
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.
Hudaco Industries Operating Margin % Related Terms
Hudaco Industries Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hudaco Industries'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.
JSE:HDC vs GWW, FAST, FERG: Operating Margin % Comparison
For the Industrial Distribution subindustry, Hudaco Industries'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.
Hudaco Industries Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Hudaco Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hudaco Industries'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.
Hudaco Industries's Operating Margin % for the fiscal year that ended in Nov. 2025 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.
Hudaco Industries (JSE:HDC) has a Operating Margin % of 13.85% as of Nov. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hudaco Industries and its competitors. This is 20% above median its historical median of 11.52. Over the past decade, Hudaco Industries' Operating Margin % has ranged from 8.17 to 12.49. According to the industry distribution chart, Hudaco Industries ranks #18 out of 157 companies in the Industrial Distribution industry, placing it in the top 11.5%.
Is Hudaco Industries' Operating Margin % too high?
Hudaco Industries' current Operating Margin % of 13.85% is 20% above median its 10-year median of 11.52. Over the past 10 years, this metric has ranged from a low of 8.17 to a high of 12.49. The Industrial Distribution industry median Operating Margin % is 4.74. Hudaco Industries' value of 13.85% is 192.2% above this industry median. Based on the distribution chart, Hudaco Industries ranks #18 out of 157 companies in the Industrial Distribution industry, which is in the top quartile — a strong position relative to peers. Overall, Hudaco Industries has a GF Score™ of 91/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hudaco Industries' Operating Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Hudaco Industries ranks #18 out of 157 companies for Operating Margin %. This places Hudaco Industries in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.74. Hudaco Industries' value of 13.85% is 192.2% above this benchmark. Historically, Hudaco Industries' own Operating Margin % has ranged from 8.17 to 12.49 over the past decade. While the company's 10-year median is 11.52 vs. the industry median of 4.74, Hudaco Industries 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 an Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.74, based on 157 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. Hudaco Industries's current Operating Margin % of 13.85% is 192.2% 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 Hudaco Industries and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hudaco Industries's current Operating Margin % is 13.85%, which is 20% above median its own 10-year median of 11.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudaco Industries stock overvalued right now?
Based on GuruFocus' analysis, Hudaco Industries (JSE:HDC) is currently considered Fairly Valued. The stock's GF Value™ is R189.20, compared to a current price of R194.88 — trading 3% above its estimated fair value. The current Operating Margin % is 13.85%, which is 20% above median its 10-year median of 11.52 and 192.2% above the Industrial Distribution industry median of 4.74. Hudaco Industries' overall GF Score™ is 91/100 with 1 warning sign 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 Hudaco Industries (JSE:HDC), the current Operating Margin % is 13.85% 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 Hudaco Industries (JSE:HDC) Overvalued in 2026?
Based on GuruFocus' analysis, Hudaco Industries stock appears to be overvalued.
The current stock price of R194.88 is trading 3% above its estimated GF Value™ of R189.20.
GuruFocus considers Hudaco Industries to be Fairly Valued.
Key valuation signals for JSE:HDC:
Operating Margin %: 13.85% (20% above median its 10-year median of 11.52)
GF Value™: R189.20 vs. price of R194.88 (3% above fair value)
Industry Position: 192.2% above the Industrial Distribution median (#18 of 157)
No single metric tells the full story. See the JSE:HDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Engineering consumables segment. Geographically, it derives a majority of revenue from South Africa.
91GF Score
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