Hera SpA (MEX:HERN) Operating Margin %: 7.07% (As of Mar. 2026) — Near Median


MEX:HERN Hera SpA MEX:HERN
56 GF Score
Price MXN81.23
GF Value MXN70.12
Valuation Modestly Overvalued
! 5 Warning Signs
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What is Hera SpA Operating Margin %?

Hera SpA MEX:HERN 56 Operating Margin % is 7.07% as of Mar. 2026, which is 2% below its 10-year median of 7.18. GuruFocus rates MEX:HERN with a GF Score™ of 56/100 and a GF Value™ of MXN70.12 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 499 Utilities - Regulated companies, Hera SpA ranks worse than 74.35% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hera SpA's Operating Income for the three months ended in Mar. 2026 was MXN5,187 Mil. Hera SpA's Revenue for the three months ended in Mar. 2026 was MXN73,332 Mil. Therefore, Hera SpA's Operating Margin % for the quarter that ended in Mar. 2026 was 7.07%.

The historical rank and industry rank for Hera SpA's Operating Margin % or its related term are showing as below:

MEX:HERN' s Operating Margin % Range Over the Past 10 Years
Min: 2.74   Med: 7.18   Max: 9.37
Current: 6.72


MEX:HERN's Operating Margin % is ranked worse than
74.35% of 499 companies
in the Utilities - Regulated industry
Industry Median: 14.97 vs MEX:HERN: 6.72

Hera SpA's 5-Year Average Operating Margin % Growth Rate was -0.60% per year.

Hera SpA's Operating Income for the three months ended in Mar. 2026 was MXN5,187 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was MXN17,326 Mil.


Hera SpA  (MEX:HERN) 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 Nokia’s 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.


Hera SpA Operating Margin % Related Terms


Hera SpA Operating Margin % Historical Data

* Premium members only.

The historical data trend for Hera SpA'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.

Hera SpA Operating Margin % Chart

Hera SpA Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.04 2.74 5.55 6.48 6.29

Hera SpA Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.72 5.37 5.44 8.23 7.07

MEX:HERN vs SRE: Operating Margin % Comparison

For the Utilities - Diversified subindustry, Hera SpA'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.


Hera SpA Operating Margin % vs Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Hera SpA's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hera SpA's Operating Margin % falls into.


MEX:HERN
56GF Score
Hera SpA MEX:HERN
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hera SpA 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.

Hera SpA's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=17204.51 / 273326.104
=6.29 %

Hera SpA's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=5186.747 / 73331.59
=7.07 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 7.07% mean?
Hera SpA (MEX:HERN) has a Operating Margin % of 7.07% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hera SpA and its competitors. This is near median its historical median of 7.18. Over the past decade, Hera SpA's Operating Margin % has ranged from 2.74 to 9.37. According to the industry distribution chart, Hera SpA ranks #371 out of 499 companies in the Utilities - Regulated industry, placing it in the top 74.3%.
Is Hera SpA's Operating Margin % too high?
Hera SpA's current Operating Margin % of 7.07% is near median its 10-year median of 7.18. Over the past 10 years, this metric has ranged from a low of 2.74 to a high of 9.37. The Utilities - Regulated industry median Operating Margin % is 14.97. Hera SpA's value of 7.07% is 52.8% below this industry median. Based on the distribution chart, Hera SpA ranks #371 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Hera SpA has a GF Score™ of 56/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hera SpA's Operating Margin % compare to SRE?
According to the Utilities - Regulated industry distribution chart, Hera SpA ranks #371 out of 499 companies for Operating Margin %. This places Hera SpA in the lower half of its industry. The industry median Operating Margin % is 14.97. Hera SpA's value of 7.07% is 52.8% below this benchmark. Historically, Hera SpA's own Operating Margin % has ranged from 2.74 to 9.37 over the past decade. While the company's 10-year median is 7.18 vs. the industry median of 14.97, Hera SpA 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Hera SpA's current Operating Margin % of 7.07% is 52.8% 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 Hera SpA and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hera SpA's current Operating Margin % is 7.07%, which is near median its own 10-year median of 7.18. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hera SpA stock overvalued right now?
Based on GuruFocus' analysis, Hera SpA (MEX:HERN) is currently considered Modestly Overvalued. The stock's GF Value™ is MXN70.12, compared to a current price of MXN81.23 — trading 15.8% above its estimated fair value. The current Operating Margin % is 7.07%, which is near median its 10-year median of 7.18 and 52.8% below the Utilities - Regulated industry median of 14.97. Hera SpA's overall GF Score™ is 56/100 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 Hera SpA (MEX:HERN), the current Operating Margin % is 7.07% 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 Hera SpA (MEX:HERN) Overvalued in 2026?

Based on GuruFocus' analysis, Hera SpA stock appears to be overvalued. The current stock price of MXN81.23 is trading 15.8% above its estimated GF Value™ of MXN70.12. GuruFocus considers Hera SpA to be Modestly Overvalued.

Key valuation signals for MEX:HERN:

  • Operating Margin %: 7.07% (near median its 10-year median of 7.18)
  • GF Value™: MXN70.12 vs. price of MXN81.23 (15.8% above fair value)
  • GF Score™: 56/100 with 5 warning signs
  • Industry Position: 52.8% below the Utilities - Regulated median (#371 of 499)

No single metric tells the full story. See the MEX:HERN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hera SpA Business Description

Address Viale C. Berti Pichat 2/4, Bologna, ITA, 40127
Hera SpA is an Italian coalescence of municipally owned companies that manages the supply of energy, water and environmental services, as well as public lighting and telecommunications to citizens and businesses. The company operates mainly in Italy in the waste management (waste management and treatment), water (aqueduct, sewerage and purification) and energy (distribution and sale of electricity, gas and energy services) sectors; it also offers services for public lighting and telecommunications.
56GF Score

Get the complete analysis for MEX:HERN

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN81.23
Price
MXN70.12
GF Value