Hikari TsushinSTU:HIK -2.12%80 Operating Margin % is 14.64% as of Mar. 2026, which is 10% above its 10-year median of 13.28. GuruFocus rates STU:HIK with a GF Score™ of 80/100 and a GF Value™ of €211.61 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 545 Conglomerates companies, Hikari Tsushin ranks better than 82.02% 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.
Hikari Tsushin Operating Margin % Related Terms
Hikari Tsushin Operating Margin % Historical Data
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The historical data trend for Hikari Tsushin'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:HIK vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Hikari Tsushin'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.
Hikari Tsushin Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Tsushin's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hikari Tsushin'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.
Hikari Tsushin'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.
Hikari Tsushin (STU:HIK) has a Operating Margin % of 14.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hikari Tsushin and its competitors. This is 10% above median its historical median of 13.28. Over the past decade, Hikari Tsushin's Operating Margin % has ranged from 9.69 to 15.88. According to the industry distribution chart, Hikari Tsushin ranks #98 out of 545 companies in the Conglomerates industry, placing it in the top 18%.
Is Hikari Tsushin's Operating Margin % too high?
Hikari Tsushin's current Operating Margin % of 14.64% is 10% above median its 10-year median of 13.28. Over the past 10 years, this metric has ranged from a low of 9.69 to a high of 15.88. The Conglomerates industry median Operating Margin % is 5.93. Hikari Tsushin's value of 14.64% is 146.9% above this industry median. Based on the distribution chart, Hikari Tsushin ranks #98 out of 545 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Hikari Tsushin has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Hikari Tsushin's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Hikari Tsushin ranks #98 out of 545 companies for Operating Margin %. This places Hikari Tsushin in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.93. Hikari Tsushin's value of 14.64% is 146.9% above this benchmark. Historically, Hikari Tsushin's own Operating Margin % has ranged from 9.69 to 15.88 over the past decade. While the company's 10-year median is 13.28 vs. the industry median of 5.93, Hikari Tsushin 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 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. Hikari Tsushin's current Operating Margin % of 14.64% is 146.9% 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 Hikari Tsushin and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hikari Tsushin's current Operating Margin % is 14.64%, which is 10% above median its own 10-year median of 13.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Tsushin stock overvalued right now?
Based on GuruFocus' analysis, Hikari Tsushin (STU:HIK) is currently considered Modestly Undervalued. The stock's GF Value™ is €211.61, compared to a current price of €185.00 — trading 12.6% below its estimated fair value. The current Operating Margin % is 14.64%, which is 10% above median its 10-year median of 13.28 and 146.9% above the Conglomerates industry median of 5.93. Hikari Tsushin's overall GF Score™ is 80/100 with 5 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 Hikari Tsushin (STU:HIK), the current Operating Margin % is 14.64% 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 Hikari Tsushin (STU:HIK) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Tsushin stock appears to be undervalued.
The current stock price of €185.00 is trading 12.6% below its estimated GF Value™ of €211.61.
GuruFocus considers Hikari Tsushin to be Modestly Undervalued.
Key valuation signals for STU:HIK:
Operating Margin %: 14.64% (10% above median its 10-year median of 13.28)
GF Value™: €211.61 vs. price of €185.00 (12.6% below fair value)
Industry Position: 146.9% above the Conglomerates median (#98 of 545)
No single metric tells the full story. See the STU:HIK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Tsushin Inc operates as a holding company engaged in diversified businesses through seven segments: Electricity and Gas, Telecommunications, Beverages, Insurance, Finance, Solutions, and Agency Sales. The group provides electricity and gas supply, communication services, natural mineral water, non-life insurance, and warranty services, as well as financial services such as microfinance, industry-specific solution platforms, and agency sales of various products from telecommunications carriers and manufacturers. It generates the majority of its revenue from the Electricity and Gas segment.
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