Pacific Health Care OrganizationPFHO 47 Operating Margin % is 11.55% as of Mar. 2026, which is 20% below its 10-year median of 14.49. GuruFocus rates PFHO with a GF Score™ of 47/100 and a GF Value™ of $0.93 (Fairly Valued). The stock has 1 warning sign investors should review. Among 15 Healthcare Plans companies, Pacific Health Care Organization ranks better than 73.33% on this metric.
Pacific Health Care Organization (OTCPK:PFHO) 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.
Pacific Health Care Organization Operating Margin % Related Terms
Pacific Health Care Organization 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.
Pacific Health Care Organization Operating Margin % Chart
PFHO vs UNH, CVS, ELV: Operating Margin % Comparison
For the Healthcare Plans subindustry, Pacific Health Care Organization'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.
Pacific Health Care Organization Operating Margin % vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Pacific Health Care Organization's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pacific Health Care Organization's Operating Margin % falls into.
Pacific Health Care Organization 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.
Pacific Health Care Organization (PFHO) has a Operating Margin % of 11.55% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pacific Health Care Organization and its competitors. This is 20% below median its historical median of 14.49. Over the past decade, Pacific Health Care Organization's Operating Margin % has ranged from 9.55 to 27.79. According to the industry distribution chart, Pacific Health Care Organization ranks #4 out of 15 companies in the Healthcare Plans industry, placing it in the top 26.7%.
Is Pacific Health Care Organization's Operating Margin % too high?
Pacific Health Care Organization's current Operating Margin % of 11.55% is 20% below median its 10-year median of 14.49. Over the past 10 years, this metric has ranged from a low of 9.55 to a high of 27.79. The Healthcare Plans industry median Operating Margin % is 3.10. Pacific Health Care Organization's value of 11.55% is 272.6% above this industry median. Based on the distribution chart, Pacific Health Care Organization ranks #4 out of 15 companies in the Healthcare Plans industry, which is above the industry midpoint. Overall, Pacific Health Care Organization has a GF Score™ of 47/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Pacific Health Care Organization's Operating Margin % compare to UNH and CVS?
According to the Healthcare Plans industry distribution chart, Pacific Health Care Organization ranks #4 out of 15 companies for Operating Margin %. This puts Pacific Health Care Organization in the upper half of its industry. The industry median Operating Margin % is 3.10. Pacific Health Care Organization's value of 11.55% is 272.6% above this benchmark. Historically, Pacific Health Care Organization's own Operating Margin % has ranged from 9.55 to 27.79 over the past decade. While the company's 10-year median is 14.49 vs. the industry median of 3.10, Pacific Health Care Organization 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 Healthcare Plans company?
The median Operating Margin % among Healthcare Plans companies is 3.10, based on 15 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. Pacific Health Care Organization's current Operating Margin % of 11.55% is 272.6% 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 Pacific Health Care Organization and its competitors. For the Healthcare Plans industry, the median Operating Margin % is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pacific Health Care Organization's current Operating Margin % is 11.55%, which is 20% below median its own 10-year median of 14.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pacific Health Care Organization stock overvalued right now?
Based on GuruFocus' analysis, Pacific Health Care Organization (PFHO) is currently considered Fairly Valued. The stock's GF Value™ is $0.93, compared to a current price of $0.85 — trading 8.6% below its estimated fair value. The current Operating Margin % is 11.55%, which is 20% below median its 10-year median of 14.49 and 272.6% above the Healthcare Plans industry median of 3.10. Pacific Health Care Organization's overall GF Score™ is 47/100 with 1 warning sign 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 Pacific Health Care Organization (PFHO), the current Operating Margin % is 11.55% 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 Pacific Health Care Organization (PFHO) Overvalued in 2026?
Based on GuruFocus' analysis, Pacific Health Care Organization stock appears to be undervalued.
The current stock price of $0.85 is trading 8.6% below its estimated GF Value™ of $0.93.
GuruFocus considers Pacific Health Care Organization to be Fairly Valued.
Key valuation signals for PFHO:
Operating Margin %: 11.55% (20% below median its 10-year median of 14.49)
GF Value™: $0.93 vs. price of $0.85 (8.6% below fair value)
Industry Position: 272.6% above the Healthcare Plans median (#4 of 15)
No single metric tells the full story. See the PFHO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pacific Health Care Organization Business Description
Pacific Health Care Organization Inc is a workers' compensation cost containment specialist providing a range of services principally to California employers and claims administrators. The company offers an integrated and layered array of complementary business solutions that enable its customers to manage their workers' compensation-related healthcare administration costs. Its services include two HCOs, MPNs, medical case management, utilization review, medical bill review, workers' compensation carve-outs and Medicare set-aside services. It also provides lien representation and witness testimony, ancillary to other services.
47GF Score
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