Hikari Holdings Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Hikari Holdings Co (TSE:1445) 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.
Hikari Holdings Co Operating Margin % Related Terms
Hikari Holdings Co Operating Margin % Historical Data
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The historical data trend for Hikari Holdings Co'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.
TSE:1445 vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Hikari Holdings Co'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 Holdings Co Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Hikari Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hikari Holdings Co'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 Holdings Co's Operating Margin % for the fiscal year that ended in Aug. 2025 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 Holdings Co (TSE:1445) has a Operating Margin % of 4.41% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hikari Holdings Co and its competitors. This is 390% above median its historical median of 0.90.
Is Hikari Holdings Co's Operating Margin % too high?
Hikari Holdings Co's current Operating Margin % of 4.41% is 390% above median its 10-year median of 0.90. The Conglomerates industry median Operating Margin % is 5.93. Hikari Holdings Co's value of 4.41% is 25.6% below this industry median. Overall, Hikari Holdings Co has a GF Score™ of 16/100, reflecting its overall financial health beyond just this single metric.
How does Hikari Holdings Co's Operating Margin % compare to HON and MMM?
Hikari Holdings Co's Operating Margin % of 4.41% can be compared against companies in the Conglomerates industry. The industry median Operating Margin % is 5.93. Hikari Holdings Co's value of 4.41% is 25.6% below this benchmark. While the company's 10-year median is 0.90 vs. the industry median of 5.93, Hikari Holdings Co 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 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 Holdings Co's current Operating Margin % of 4.41% is 25.6% 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 Hikari Holdings Co 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 Holdings Co's current Operating Margin % is 4.41%, which is 390% above median its own 10-year median of 0.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hikari Holdings Co stock overvalued right now?
Hikari Holdings Co (TSE:1445) has a current Operating Margin % of 4.41%. The stock's GF Value™ is 円4,506.62, compared to a current price of 円2,900.00 — trading 35.7% below its estimated fair value. The current Operating Margin % is 4.41%, which is 390% above median its 10-year median of 0.90 and 25.6% below the Conglomerates industry median of 5.93. Hikari Holdings Co's overall GF Score™ is 16/100 with 7 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 Holdings Co (TSE:1445), the current Operating Margin % is 4.41% as of Feb. 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 Holdings Co (TSE:1445) Overvalued in 2026?
Based on GuruFocus' analysis, Hikari Holdings Co stock appears to be undervalued.
The current stock price of 円2,900.00 is trading 35.7% below its estimated GF Value™ of 円4,506.62.
Key valuation signals for TSE:1445:
Operating Margin %: 4.41% (390% above median its 10-year median of 0.90)
GF Value™: 円4,506.62 vs. price of 円2,900.00 (35.7% below fair value)
Industry Position: 25.6% below the Conglomerates median
No single metric tells the full story. See the TSE:1445 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hikari Holdings Co Ltd is engaged in construction-related businesses with five reportable segments: Tile and Stone Processing and Sales Business, General Building Materials Business, Telecommunications Construction Business, Civil Engineering Work Business, and General Renovation Construction Business. The company provides a wide range of services, including processing and sales of interior and exterior materials, construction work using tiles and stone, telecommunications system design and supervision, public works projects like sewerage and road improvements, and comprehensive renovation work such as tile renovation and ultra-high pressure cleaning. It generates the majority of its revenue from the General Building Materials Business segment.
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