Mitsubishi Heavy IndustriesMHVYF +1.66%80 Operating Margin % is 8.14% as of Mar. 2026, which is 100% above its 10-year median of 4.07. GuruFocus rates MHVYF with a GF Score™ of 80/100 and a GF Value™ of $15.42 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 3,038 Industrial Products companies, Mitsubishi Heavy Industries ranks better than 59.12% on this metric.
Mitsubishi Heavy Industries (OTCPK:MHVYF) 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.
Mitsubishi Heavy Industries Operating Margin % Related Terms
Mitsubishi Heavy Industries 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.
Mitsubishi Heavy Industries Operating Margin % Chart
MHVYF vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Mitsubishi Heavy Industries'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.
Mitsubishi Heavy Industries Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Mitsubishi Heavy Industries's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Mitsubishi Heavy Industries's Operating Margin % falls into.
Mitsubishi Heavy Industries 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.
Mitsubishi Heavy Industries'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.
Mitsubishi Heavy Industries (MHVYF) has a Operating Margin % of 8.14% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Mitsubishi Heavy Industries and its competitors. This is 100% above median its historical median of 4.07. According to the industry distribution chart, Mitsubishi Heavy Industries ranks #1242 out of 3038 companies in the Industrial Products industry, placing it in the top 40.9%.
Is Mitsubishi Heavy Industries' Operating Margin % too high?
Mitsubishi Heavy Industries' current Operating Margin % of 8.14% is 100% above median its 10-year median of 4.07. The Industrial Products industry median Operating Margin % is 6.53. Mitsubishi Heavy Industries' value of 8.14% is 24.7% above this industry median. Based on the distribution chart, Mitsubishi Heavy Industries ranks #1242 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Mitsubishi Heavy Industries has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Mitsubishi Heavy Industries' Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Mitsubishi Heavy Industries ranks #1242 out of 3038 companies for Operating Margin %. This puts Mitsubishi Heavy Industries in the upper half of its industry. The industry median Operating Margin % is 6.53. Mitsubishi Heavy Industries' value of 8.14% is 24.7% above this benchmark. While the company's 10-year median is 4.07 vs. the industry median of 6.53, Mitsubishi Heavy Industries 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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. Mitsubishi Heavy Industries's current Operating Margin % of 8.14% is 24.7% 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 Mitsubishi Heavy Industries and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Mitsubishi Heavy Industries's current Operating Margin % is 8.14%, which is 100% above median its own 10-year median of 4.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Mitsubishi Heavy Industries stock overvalued right now?
Based on GuruFocus' analysis, Mitsubishi Heavy Industries (MHVYF) is currently considered Significantly Overvalued. The stock's GF Value™ is $15.42, compared to a current price of $23.55 — trading 52.7% above its estimated fair value. The current Operating Margin % is 8.14%, which is 100% above median its 10-year median of 4.07 and 24.7% above the Industrial Products industry median of 6.53. Mitsubishi Heavy Industries' overall GF Score™ is 80/100 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 Mitsubishi Heavy Industries (MHVYF), the current Operating Margin % is 8.14% 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 Mitsubishi Heavy Industries (MHVYF) Overvalued in 2026?
Based on GuruFocus' analysis, Mitsubishi Heavy Industries stock appears to be overvalued.
The current stock price of $23.55 is trading 52.7% above its estimated GF Value™ of $15.42.
GuruFocus considers Mitsubishi Heavy Industries to be Significantly Overvalued.
Key valuation signals for MHVYF:
Operating Margin %: 8.14% (100% above median its 10-year median of 4.07)
GF Value™: $15.42 vs. price of $23.55 (52.7% above fair value)
Industry Position: 24.7% above the Industrial Products median (#1242 of 3038)
No single metric tells the full story. See the MHVYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Mitsubishi Heavy Industries is a diversified industrial and engineering group that was founded in 1884 and reorganized in 1950. It operates across four segments: energy systems; plants and infrastructure; logistics, thermal and drive systems; and aircraft, defense and space. MHI is a global leader in large gas turbines and energy services, and a key domestic supplier of aerospace and defense systems. Its end markets include energy infrastructure, industrial equipment, transport, and defense, with a growing focus on decarbonization technologies such as hydrogen- and ammonia-capable turbines. The company employs about 77,000 people globally.
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