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.
Panasonic Manufacturing Philippines Operating Margin % Related Terms
Panasonic Manufacturing Philippines 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.
For the Consumer Electronics subindustry, Panasonic Manufacturing Philippines'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.
Panasonic Manufacturing Philippines Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Panasonic Manufacturing Philippines's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Panasonic Manufacturing Philippines's Operating Margin % falls into.
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.
Panasonic Manufacturing Philippines (PHS:PMPC) has a Operating Margin % of 0.61% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Panasonic Manufacturing Philippines and its competitors. This is 65% below median its historical median of 1.76. Over the past decade, Panasonic Manufacturing Philippines' Operating Margin % has ranged from 0.81 to 5.44. According to the industry distribution chart, Panasonic Manufacturing Philippines ranks #1368 out of 2471 companies in the Hardware industry, placing it in the top 55.4%.
Is Panasonic Manufacturing Philippines' Operating Margin % too high?
Panasonic Manufacturing Philippines' current Operating Margin % of 0.61% is 65% below median its 10-year median of 1.76. Over the past 10 years, this metric has ranged from a low of 0.81 to a high of 5.44. The Hardware industry median Operating Margin % is 3.80. Panasonic Manufacturing Philippines' value of 0.61% is 83.9% below this industry median. Based on the distribution chart, Panasonic Manufacturing Philippines ranks #1368 out of 2471 companies in the Hardware industry, which is below the industry midpoint. Overall, Panasonic Manufacturing Philippines has a GF Score™ of 86/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Panasonic Manufacturing Philippines' Operating Margin % compare to AAPL?
According to the Hardware industry distribution chart, Panasonic Manufacturing Philippines ranks #1368 out of 2471 companies for Operating Margin %. This places Panasonic Manufacturing Philippines in the lower half of its industry. The industry median Operating Margin % is 3.80. Panasonic Manufacturing Philippines' value of 0.61% is 83.9% below this benchmark. Historically, Panasonic Manufacturing Philippines' own Operating Margin % has ranged from 0.81 to 5.44 over the past decade. While the company's 10-year median is 1.76 vs. the industry median of 3.80, Panasonic Manufacturing Philippines 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,471 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. Panasonic Manufacturing Philippines's current Operating Margin % of 0.61% is 83.9% 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 Panasonic Manufacturing Philippines and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Panasonic Manufacturing Philippines's current Operating Margin % is 0.61%, which is 65% below median its own 10-year median of 1.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Panasonic Manufacturing Philippines stock overvalued right now?
Based on GuruFocus' analysis, Panasonic Manufacturing Philippines (PHS:PMPC) is currently considered Significantly Overvalued. The stock's GF Value™ is ₱6.43, compared to a current price of ₱8.60 — trading 33.7% above its estimated fair value. The current Operating Margin % is 0.61%, which is 65% below median its 10-year median of 1.76 and 83.9% below the Hardware industry median of 3.80. Panasonic Manufacturing Philippines' overall GF Score™ is 86/100 with 2 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 Panasonic Manufacturing Philippines (PHS:PMPC), the current Operating Margin % is 0.61% as of Dec. 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 Panasonic Manufacturing Philippines (PHS:PMPC) Overvalued in 2026?
Based on GuruFocus' analysis, Panasonic Manufacturing Philippines stock appears to be overvalued.
The current stock price of ₱8.60 is trading 33.7% above its estimated GF Value™ of ₱6.43.
GuruFocus considers Panasonic Manufacturing Philippines to be Significantly Overvalued.
Key valuation signals for PHS:PMPC:
Operating Margin %: 0.61% (65% below median its 10-year median of 1.76)
GF Value™: ₱6.43 vs. price of ₱8.60 (33.7% above fair value)
Industry Position: 83.9% below the Hardware median (#1368 of 2471)
No single metric tells the full story. See the PHS:PMPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Panasonic Manufacturing Philippines Business Description
Panasonic Manufacturing Philippines Corp is a manufacturer, importer, and distributor of electronic, electrical, mechanical, and electro-mechanical appliances, and other types of machinery, parts, components, and batteries. The business of the company operates in segments that include Consumer, which sells products for the media and entertainment industry; System Solutions Group, which sells security systems and projectors; Electric Works (EW) includes lamps, ventilation fans, Panasonic Nanoe Generator (PNG), and other lighting accessories and others, which sells supermarket refrigeration products. It sells all its products under the brand name Panasonic. Its geographical segments are the Philippines, Hong Kong, and Taiwan.
86GF Score
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