Cherat Cement CoKAR:CHCC +4.88%88 Operating Margin % is 24.33% as of Mar. 2026, which is 0% below its 10-year median of 24.34. GuruFocus rates KAR:CHCC with a GF Score™ of 88/100 and a GF Value™ of ₨249.00 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 405 Building Materials companies, Cherat Cement Co ranks better than 95.31% on this metric.
The historical rank and industry rank for Cherat Cement Co's Operating Margin % or its related term are showing as below:
KAR:CHCC'
s Operating Margin % Range Over the Past 10 Years
Min: -1.22 Med: 24.34 Max: 32.11
Current: 28.99
KAR:CHCC's Operating Margin % is ranked better than 95.31% of 405
companies
in the Building Materials industry
Industry Median: 7.64
vs KAR:CHCC: 28.99
Cherat Cement Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Cherat Cement Co (KAR:CHCC) 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.
Cherat Cement Co Operating Margin % Related Terms
Cherat Cement Co Operating Margin % Historical Data
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The historical data trend for Cherat Cement Co'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.
KAR:CHCC vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Cherat Cement 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.
Cherat Cement Co Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Cherat Cement Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cherat Cement Co'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.
Cherat Cement Co's Operating Margin % for the fiscal year that ended in Jun. 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.
Cherat Cement Co (KAR:CHCC) has a Operating Margin % of 24.33% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cherat Cement Co and its competitors. This is near median its historical median of 24.34. According to the industry distribution chart, Cherat Cement Co ranks #19 out of 405 companies in the Building Materials industry, placing it in the top 4.7%.
Is Cherat Cement Co's Operating Margin % too high?
Cherat Cement Co's current Operating Margin % of 24.33% is near median its 10-year median of 24.34. The Building Materials industry median Operating Margin % is 7.64. Cherat Cement Co's value of 24.33% is 218.5% above this industry median. Based on the distribution chart, Cherat Cement Co ranks #19 out of 405 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Cherat Cement Co has a GF Score™ of 88/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cherat Cement Co's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Cherat Cement Co ranks #19 out of 405 companies for Operating Margin %. This places Cherat Cement Co in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.64. Cherat Cement Co's value of 24.33% is 218.5% above this benchmark. While the company's 10-year median is 24.34 vs. the industry median of 7.64, Cherat Cement 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.64, based on 405 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. Cherat Cement Co's current Operating Margin % of 24.33% is 218.5% 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 Cherat Cement Co and its competitors. For the Building Materials industry, the median Operating Margin % is 7.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cherat Cement Co's current Operating Margin % is 24.33%, which is near median its own 10-year median of 24.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cherat Cement Co stock overvalued right now?
Based on GuruFocus' analysis, Cherat Cement Co (KAR:CHCC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨249.00, compared to a current price of ₨339.33 — trading 36.3% above its estimated fair value. The current Operating Margin % is 24.33%, which is near median its 10-year median of 24.34 and 218.5% above the Building Materials industry median of 7.64. Cherat Cement Co's overall GF Score™ is 88/100 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 Cherat Cement Co (KAR:CHCC), the current Operating Margin % is 24.33% 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 Cherat Cement Co (KAR:CHCC) Overvalued in 2026?
Based on GuruFocus' analysis, Cherat Cement Co stock appears to be overvalued.
The current stock price of ₨339.33 is trading 36.3% above its estimated GF Value™ of ₨249.00.
GuruFocus considers Cherat Cement Co to be Significantly Overvalued.
Key valuation signals for KAR:CHCC:
Operating Margin %: 24.33% (near median its 10-year median of 24.34)
GF Value™: ₨249.00 vs. price of ₨339.33 (36.3% above fair value)
Industry Position: 218.5% above the Building Materials median (#19 of 405)
No single metric tells the full story. See the KAR:CHCC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cherat Cement Co Ltd is a Ghulam Faruque Group (GFG) Company. Its main business activity is the manufacturing, marketing, and sale of cement. The main product is ordinary Portland Cement, branded as Cherat, with the introduction of composite Cement named Cherat Khyber. The manufacturing plant is located in Village Lakrai, District Nowshera, Khyber Pakhtunkhwa, Pakistan. The product is actively exported to the Afghanistan market.
88GF Score
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