Million Hope Industries Holdings (OTCPK:MHIHF) 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 NokiaÂ’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.
Million Hope Industries Holdings Operating Margin % Related Terms
Million Hope Industries Holdings 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.
Million Hope Industries Holdings Operating Margin % Chart
MHIHF vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Million Hope Industries Holdings'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.
Million Hope Industries Holdings Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Million Hope Industries Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Million Hope Industries Holdings's Operating Margin % falls into.
Million Hope Industries Holdings 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.
* 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.
Million Hope Industries Holdings (MHIHF) has a Operating Margin % of 2.79% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Million Hope Industries Holdings and its competitors. This is 55% below median its historical median of 6.15. Over the past decade, Million Hope Industries Holdings' Operating Margin % has ranged from 0.40 to 17.66. According to the industry distribution chart, Million Hope Industries Holdings ranks #1426 out of 1767 companies in the Construction industry, placing it in the top 80.7%.
Is Million Hope Industries Holdings' Operating Margin % too high?
Million Hope Industries Holdings' current Operating Margin % of 2.79% is 55% below median its 10-year median of 6.15. Over the past 10 years, this metric has ranged from a low of 0.40 to a high of 17.66. The Construction industry median Operating Margin % is 5.89. Million Hope Industries Holdings' value of 2.79% is 52.6% below this industry median. Based on the distribution chart, Million Hope Industries Holdings ranks #1426 out of 1767 companies in the Construction industry, which is in the bottom quartile relative to peers. Overall, Million Hope Industries Holdings has a GF Scoreâ„¢ of 55/100, reflecting its overall financial health beyond just this single metric.
How does Million Hope Industries Holdings' Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Million Hope Industries Holdings ranks #1426 out of 1767 companies for Operating Margin %. This places Million Hope Industries Holdings in the lower half of its industry. The industry median Operating Margin % is 5.89. Million Hope Industries Holdings' value of 2.79% is 52.6% below this benchmark. Historically, Million Hope Industries Holdings' own Operating Margin % has ranged from 0.40 to 17.66 over the past decade. While the company's 10-year median is 6.15 vs. the industry median of 5.89, Million Hope Industries Holdings 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. Million Hope Industries Holdings's current Operating Margin % of 2.79% is 52.6% 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 Million Hope Industries Holdings and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Million Hope Industries Holdings's current Operating Margin % is 2.79%, which is 55% below median its own 10-year median of 6.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Million Hope Industries Holdings stock overvalued right now?
Million Hope Industries Holdings (MHIHF) has a current Operating Margin % of 2.79%. The stock's GF Value™ is $0.02, compared to a current price of $0.04 — trading 100% above its estimated fair value. The current Operating Margin % is 2.79%, which is 55% below median its 10-year median of 6.15 and 52.6% below the Construction industry median of 5.89. Million Hope Industries Holdings' overall GF Score™ is 55/100 with 7 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 Million Hope Industries Holdings (MHIHF), the current Operating Margin % is 2.79% as of Sep. 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 Million Hope Industries Holdings (MHIHF) Overvalued in 2026?
Based on GuruFocus' analysis, Million Hope Industries Holdings stock appears to be overvalued.
The current stock price of $0.04 is trading 100% above its estimated GF Value™ of $0.02.
Key valuation signals for MHIHF:
Operating Margin %: 2.79% (55% below median its 10-year median of 6.15)
GF Value™: $0.02 vs. price of $0.04 (100% above fair value)
Industry Position: 52.6% below the Construction median (#1426 of 1767)
No single metric tells the full story. See the MHIHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Million Hope Industries Holdings Business Description
Million Hope Industries Holdings Ltd and its subsidiaries are engaged in designing, supplying and installation of facade and curtain wall systems, with a focus on curtain walls, aluminum windows and doors. The company provides design, supply and installation services for curtain walls, aluminium windows and doors on both new and existing buildings, and works with customers and architects to offer tailor-made designs and products to suit the project requirements. The principal customers are the main contractors and property developers. Geographically, the group has a business presence in Hong Kong and Mainland China of which prime revenue is generated from Hong Kong.
55GF Score
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