Hiroshima Gas CoTSE:9535 62 Operating Margin % is 6.81% as of Mar. 2026, which is 80% above its 10-year median of 3.79. GuruFocus rates TSE:9535 with a GF Score™ of 62/100 and a GF Value™ of 円352.04 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 917 Oil & Gas companies, Hiroshima Gas Co ranks worse than 67.39% on this metric.
Hiroshima Gas Co (TSE:9535) 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.
Hiroshima Gas Co Operating Margin % Related Terms
Hiroshima Gas Co Operating Margin % Historical Data
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The historical data trend for Hiroshima Gas 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:9535 vs XOM, CVX: Operating Margin % Comparison
For the Oil & Gas Integrated subindustry, Hiroshima Gas 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.
Hiroshima Gas Co Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Hiroshima Gas Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hiroshima Gas 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.
Hiroshima Gas Co'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.
Hiroshima Gas Co (TSE:9535) has a Operating Margin % of 6.81% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hiroshima Gas Co and its competitors. This is 80% above median its historical median of 3.79. Over the past decade, Hiroshima Gas Co's Operating Margin % has ranged from 1.37 to 7.38. According to the industry distribution chart, Hiroshima Gas Co ranks #618 out of 917 companies in the Oil & Gas industry, placing it in the top 67.4%.
Is Hiroshima Gas Co's Operating Margin % too high?
Hiroshima Gas Co's current Operating Margin % of 6.81% is 80% above median its 10-year median of 3.79. Over the past 10 years, this metric has ranged from a low of 1.37 to a high of 7.38. The Oil & Gas industry median Operating Margin % is 6.87. Hiroshima Gas Co's value of 6.81% is 0.9% below this industry median. Based on the distribution chart, Hiroshima Gas Co ranks #618 out of 917 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Hiroshima Gas Co has a GF Score™ of 62/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hiroshima Gas Co's Operating Margin % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, Hiroshima Gas Co ranks #618 out of 917 companies for Operating Margin %. This places Hiroshima Gas Co in the lower half of its industry. The industry median Operating Margin % is 6.87. Hiroshima Gas Co's value of 6.81% is 0.9% below this benchmark. Historically, Hiroshima Gas Co's own Operating Margin % has ranged from 1.37 to 7.38 over the past decade. While the company's 10-year median is 3.79 vs. the industry median of 6.87, Hiroshima Gas 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 an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.87, based on 917 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. Hiroshima Gas Co's current Operating Margin % of 6.81% is 0.9% 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 Hiroshima Gas Co and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hiroshima Gas Co's current Operating Margin % is 6.81%, which is 80% above median its own 10-year median of 3.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hiroshima Gas Co stock overvalued right now?
Based on GuruFocus' analysis, Hiroshima Gas Co (TSE:9535) is currently considered Modestly Overvalued. The stock's GF Value™ is 円352.04, compared to a current price of 円420.00 — trading 19.3% above its estimated fair value. The current Operating Margin % is 6.81%, which is 80% above median its 10-year median of 3.79 and 0.9% below the Oil & Gas industry median of 6.87. Hiroshima Gas Co's overall GF Score™ is 62/100 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 Hiroshima Gas Co (TSE:9535), the current Operating Margin % is 6.81% 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 Hiroshima Gas Co (TSE:9535) Overvalued in 2026?
Based on GuruFocus' analysis, Hiroshima Gas Co stock appears to be overvalued.
The current stock price of 円420.00 is trading 19.3% above its estimated GF Value™ of 円352.04.
GuruFocus considers Hiroshima Gas Co to be Modestly Overvalued.
Key valuation signals for TSE:9535:
Operating Margin %: 6.81% (80% above median its 10-year median of 3.79)
GF Value™: 円352.04 vs. price of 円420.00 (19.3% above fair value)
Industry Position: 0.9% below the Oil & Gas median (#618 of 917)
No single metric tells the full story. See the TSE:9535 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hiroshima Gas Co Ltd is a provider of gas in the Chugoku region of Japan. It engages in supply of gas business, sale of gas appliances, sales of liquefied natural gas, and electricity business. Its business segments include Gas business which includes production, supply and sale of city gas, wholesale supply of gas to other gas companies; LPG business includes sale of LPG, refilling of LPG tanks, sale of LPG devices and installation of LPG pipes, and Other activities include construction, engineering, installation of machinery, and information distribution.
62GF Score
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