Houlihan LokeySTU:2HL -1.46%91 Operating Margin % is 22.50% as of Mar. 2026, which is 4% above its 10-year median of 21.57. GuruFocus rates STU:2HL with a GF Score™ of 91/100 and a GF Value™ of €167.09 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 664 Capital Markets companies, Houlihan Lokey ranks better than 63.4% on this metric.
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.
Houlihan Lokey Operating Margin % Related Terms
Houlihan Lokey Operating Margin % Historical Data
* Premium members only.
The historical data trend for Houlihan Lokey'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.
STU:2HL vs RIOT, SNEX, SF: Operating Margin % Comparison
For the Capital Markets subindustry, Houlihan Lokey'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.
Houlihan Lokey Operating Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Houlihan Lokey's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Houlihan Lokey'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.
Houlihan Lokey'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.
Houlihan Lokey (STU:2HL) has a Operating Margin % of 22.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Houlihan Lokey and its competitors. This is near median its historical median of 21.57. Over the past decade, Houlihan Lokey's Operating Margin % has ranged from 19.80 to 27.00. According to the industry distribution chart, Houlihan Lokey ranks #243 out of 664 companies in the Capital Markets industry, placing it in the top 36.6%.
Is Houlihan Lokey's Operating Margin % too high?
Houlihan Lokey's current Operating Margin % of 22.50% is near median its 10-year median of 21.57. Over the past 10 years, this metric has ranged from a low of 19.80 to a high of 27.00. The Capital Markets industry median Operating Margin % is 6.96. Houlihan Lokey's value of 22.50% is 223.5% above this industry median. Based on the distribution chart, Houlihan Lokey ranks #243 out of 664 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Houlihan Lokey has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Houlihan Lokey's Operating Margin % compare to RIOT and SNEX?
According to the Capital Markets industry distribution chart, Houlihan Lokey ranks #243 out of 664 companies for Operating Margin %. This puts Houlihan Lokey in the upper half of its industry. The industry median Operating Margin % is 6.96. Houlihan Lokey's value of 22.50% is 223.5% above this benchmark. Historically, Houlihan Lokey's own Operating Margin % has ranged from 19.80 to 27.00 over the past decade. While the company's 10-year median is 21.57 vs. the industry median of 6.96, Houlihan Lokey 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 Capital Markets company?
The median Operating Margin % among Capital Markets companies is 6.96, based on 664 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. Houlihan Lokey's current Operating Margin % of 22.50% is 223.5% 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 Houlihan Lokey and its competitors. For the Capital Markets industry, the median Operating Margin % is 6.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Houlihan Lokey's current Operating Margin % is 22.50%, which is near median its own 10-year median of 21.57. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Houlihan Lokey stock overvalued right now?
Based on GuruFocus' analysis, Houlihan Lokey (STU:2HL) is currently considered Modestly Undervalued. The stock's GF Value™ is €167.09, compared to a current price of €121.90 — trading 27% below its estimated fair value. The current Operating Margin % is 22.50%, which is near median its 10-year median of 21.57 and 223.5% above the Capital Markets industry median of 6.96. Houlihan Lokey's overall GF Score™ is 91/100 with 3 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 Houlihan Lokey (STU:2HL), the current Operating Margin % is 22.50% 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 Houlihan Lokey (STU:2HL) Overvalued in 2026?
Based on GuruFocus' analysis, Houlihan Lokey stock appears to be undervalued.
The current stock price of €121.90 is trading 27% below its estimated GF Value™ of €167.09.
GuruFocus considers Houlihan Lokey to be Modestly Undervalued.
Key valuation signals for STU:2HL:
Operating Margin %: 22.50% (near median its 10-year median of 21.57)
GF Value™: €167.09 vs. price of €121.90 (27% below fair value)
Industry Position: 223.5% above the Capital Markets median (#243 of 664)
No single metric tells the full story. See the STU:2HL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments world-wide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. The Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
91GF Score
Get the complete analysis for STU:2HL
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
STU:2HL has been successfully added to your 
