Pakistan Tobacco CoKAR:PAKT -1.18%92 Operating Margin % is 21.41% as of Mar. 2026, which is 37% below its 10-year median of 34.14. GuruFocus rates KAR:PAKT with a GF Score™ of 92/100 and a GF Value™ of ₨1,497.71 (Fairly Valued). The stock has 4 warning signs investors should review. Among 48 Tobacco Products companies, Pakistan Tobacco Co ranks better than 83.33% on this metric.
Pakistan Tobacco Co (KAR:PAKT) 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.
Pakistan Tobacco Co Operating Margin % Related Terms
Pakistan Tobacco Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Pakistan Tobacco 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:PAKT vs PM, MO, TPB: Operating Margin % Comparison
For the Tobacco subindustry, Pakistan Tobacco 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.
Pakistan Tobacco Co Operating Margin % vs Tobacco Products Industry
For the Tobacco Products industry and Consumer Defensive sector, Pakistan Tobacco Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pakistan Tobacco Co's Operating Margin % falls into.
Pakistan Tobacco Co 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.
Pakistan Tobacco Co's Operating Margin % for the fiscal year that ended in Dec. 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.
Pakistan Tobacco Co (KAR:PAKT) has a Operating Margin % of 21.41% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pakistan Tobacco Co and its competitors. This is 37% below median its historical median of 34.14. Over the past decade, Pakistan Tobacco Co's Operating Margin % has ranged from 27.54 to 39.08. According to the industry distribution chart, Pakistan Tobacco Co ranks #8 out of 48 companies in the Tobacco Products industry, placing it in the top 16.7%.
Is Pakistan Tobacco Co's Operating Margin % too high?
Pakistan Tobacco Co's current Operating Margin % of 21.41% is 37% below median its 10-year median of 34.14. Over the past 10 years, this metric has ranged from a low of 27.54 to a high of 39.08. The Tobacco Products industry median Operating Margin % is 9.37. Pakistan Tobacco Co's value of 21.41% is 128.6% above this industry median. Based on the distribution chart, Pakistan Tobacco Co ranks #8 out of 48 companies in the Tobacco Products industry, which is in the top quartile — a strong position relative to peers. Overall, Pakistan Tobacco Co has a GF Score™ of 92/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pakistan Tobacco Co's Operating Margin % compare to PM and MO?
According to the Tobacco Products industry distribution chart, Pakistan Tobacco Co ranks #8 out of 48 companies for Operating Margin %. This places Pakistan Tobacco Co in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 9.37. Pakistan Tobacco Co's value of 21.41% is 128.6% above this benchmark. Historically, Pakistan Tobacco Co's own Operating Margin % has ranged from 27.54 to 39.08 over the past decade. While the company's 10-year median is 34.14 vs. the industry median of 9.37, Pakistan Tobacco 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 Tobacco Products company?
The median Operating Margin % among Tobacco Products companies is 9.37, based on 48 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. Pakistan Tobacco Co's current Operating Margin % of 21.41% is 128.6% 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 Pakistan Tobacco Co and its competitors. For the Tobacco Products industry, the median Operating Margin % is 9.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pakistan Tobacco Co's current Operating Margin % is 21.41%, which is 37% below median its own 10-year median of 34.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pakistan Tobacco Co stock overvalued right now?
Based on GuruFocus' analysis, Pakistan Tobacco Co (KAR:PAKT) is currently considered Fairly Valued. The stock's GF Value™ is ₨1,497.71, compared to a current price of ₨1,420.25 — trading 5.2% below its estimated fair value. The current Operating Margin % is 21.41%, which is 37% below median its 10-year median of 34.14 and 128.6% above the Tobacco Products industry median of 9.37. Pakistan Tobacco Co's overall GF Score™ is 92/100 with 4 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 Pakistan Tobacco Co (KAR:PAKT), the current Operating Margin % is 21.41% 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 Pakistan Tobacco Co (KAR:PAKT) Overvalued in 2026?
Based on GuruFocus' analysis, Pakistan Tobacco Co stock appears to be undervalued.
The current stock price of ₨1,420.25 is trading 5.2% below its estimated GF Value™ of ₨1,497.71.
GuruFocus considers Pakistan Tobacco Co to be Fairly Valued.
Key valuation signals for KAR:PAKT:
Operating Margin %: 21.41% (37% below median its 10-year median of 34.14)
GF Value™: ₨1,497.71 vs. price of ₨1,420.25 (5.2% below fair value)
Industry Position: 128.6% above the Tobacco Products median (#8 of 48)
No single metric tells the full story. See the KAR:PAKT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pakistan Tobacco Co Ltd is engaged in the manufacturing and distribution of cigarettes, tobacco, VELO, and VUSE. Its products are marketed through brands like Dunhill, Gold Flake, John Player, Embassy, Capstan, and others. Geographically, the company generates a majority of its revenue from its domestic market and also exports its products to other countries.
92GF Score
Get the complete analysis for KAR:PAKT
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
KAR:PAKT has been successfully added to your 
