Honda Atlas Cars PakistanKAR:HCAR -2.62%57 Operating Margin % is 2.77% as of Mar. 2026, which is 38% below its 10-year median of 4.50. GuruFocus rates KAR:HCAR with a GF Score™ of 57/100 and a GF Value™ of ₨461.41 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 1,325 Vehicles & Parts companies, Honda Atlas Cars Pakistan ranks worse than 57.06% on this metric.
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.
Honda Atlas Cars Pakistan Operating Margin % Related Terms
Honda Atlas Cars Pakistan 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.
KAR:HCAR vs TSLA, GM, F: Operating Margin % Comparison
For the Auto Manufacturers subindustry, Honda Atlas Cars Pakistan'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.
Honda Atlas Cars Pakistan Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Honda Atlas Cars Pakistan's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Honda Atlas Cars Pakistan'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.
Honda Atlas Cars Pakistan'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.
Honda Atlas Cars Pakistan (KAR:HCAR) has a Operating Margin % of 2.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Honda Atlas Cars Pakistan and its competitors. This is 38% below median its historical median of 4.50. Over the past decade, Honda Atlas Cars Pakistan's Operating Margin % has ranged from 2.78 to 12.06. According to the industry distribution chart, Honda Atlas Cars Pakistan ranks #756 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 57.1%.
Is Honda Atlas Cars Pakistan's Operating Margin % too high?
Honda Atlas Cars Pakistan's current Operating Margin % of 2.77% is 38% below median its 10-year median of 4.50. Over the past 10 years, this metric has ranged from a low of 2.78 to a high of 12.06. The Vehicles & Parts industry median Operating Margin % is 4.86. Honda Atlas Cars Pakistan's value of 2.77% is 43% below this industry median. Based on the distribution chart, Honda Atlas Cars Pakistan ranks #756 out of 1325 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Honda Atlas Cars Pakistan has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Honda Atlas Cars Pakistan's Operating Margin % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Honda Atlas Cars Pakistan ranks #756 out of 1325 companies for Operating Margin %. This places Honda Atlas Cars Pakistan in the lower half of its industry. The industry median Operating Margin % is 4.86. Honda Atlas Cars Pakistan's value of 2.77% is 43% below this benchmark. Historically, Honda Atlas Cars Pakistan's own Operating Margin % has ranged from 2.78 to 12.06 over the past decade. While the company's 10-year median is 4.50 vs. the industry median of 4.86, Honda Atlas Cars Pakistan 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 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. Honda Atlas Cars Pakistan's current Operating Margin % of 2.77% is 43% 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 Honda Atlas Cars Pakistan 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. Honda Atlas Cars Pakistan's current Operating Margin % is 2.77%, which is 38% below median its own 10-year median of 4.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honda Atlas Cars Pakistan stock overvalued right now?
Based on GuruFocus' analysis, Honda Atlas Cars Pakistan (KAR:HCAR) is currently considered Significantly Undervalued. The stock's GF Value™ is ₨461.41, compared to a current price of ₨241.33 — trading 47.7% below its estimated fair value. The current Operating Margin % is 2.77%, which is 38% below median its 10-year median of 4.50 and 43% below the Vehicles & Parts industry median of 4.86. Honda Atlas Cars Pakistan's overall GF Score™ is 57/100 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 Honda Atlas Cars Pakistan (KAR:HCAR), the current Operating Margin % is 2.77% 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 Honda Atlas Cars Pakistan (KAR:HCAR) Overvalued in 2026?
Based on GuruFocus' analysis, Honda Atlas Cars Pakistan stock appears to be undervalued.
The current stock price of ₨241.33 is trading 47.7% below its estimated GF Value™ of ₨461.41.
GuruFocus considers Honda Atlas Cars Pakistan to be Significantly Undervalued.
Key valuation signals for KAR:HCAR:
Operating Margin %: 2.77% (38% below median its 10-year median of 4.50)
GF Value™: ₨461.41 vs. price of ₨241.33 (47.7% below fair value)
Industry Position: 43% below the Vehicles & Parts median (#756 of 1325)
No single metric tells the full story. See the KAR:HCAR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honda Atlas Cars Pakistan Ltd is engaged in assembling and progressive manufacturing and sale of Honda vehicles and spare parts. Its segments include the Manufacturing and Trading segment. The manufacturing segment relates to the sale of locally manufactured cars and parts, and the Trading segment relates to the trading of completely built units (CBUs) and parts. It offers car models, such as the Honda Accord, Honda CR-V, Honda CR-Z, Honda HR-V, and Honda City in various colors with technology features. Honda derives the majority of its revenue from the Manufacturing segment. Geographically, it operates in Pakistan, Thailand, and Japan.
57GF Score
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