National Hydro Power CoXNEP:NHPC -1.92%84 Operating Margin % is 37.12% as of Jan. 2026, which is 40% above its 10-year median of 26.52. GuruFocus rates XNEP:NHPC with a GF Score™ of 84/100 and a GF Value™ of NPR330.54 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 418 Utilities - Independent Power Producers companies, National Hydro Power Co ranks better than 84.21% on this metric.
The historical rank and industry rank for National Hydro Power Co's Operating Margin % or its related term are showing as below:
XNEP:NHPC'
s Operating Margin % Range Over the Past 10 Years
Min: -22.62 Med: 26.52 Max: 395.3
Current: 36.7
XNEP:NHPC's Operating Margin % is ranked better than 84.21% of 418
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.55
vs XNEP:NHPC: 36.70
National Hydro Power Co (XNEP:NHPC) 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.
National Hydro Power Co Operating Margin % Related Terms
National Hydro Power Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for National Hydro Power 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.
National Hydro Power Co Operating Margin % Competitor Comparison
For the Utilities - Renewable subindustry, National Hydro Power 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.
National Hydro Power Co Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, National Hydro Power Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where National Hydro Power Co's Operating Margin % falls into.
National Hydro Power Co Operating Margin % Calculation
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.
National Hydro Power Co's Operating Margin % for the fiscal year that ended in Jul. 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.
National Hydro Power Co (XNEP:NHPC) has a Operating Margin % of 37.12% as of Jan. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on National Hydro Power Co and its competitors. This is 40% above median its historical median of 26.52. According to the industry distribution chart, National Hydro Power Co ranks #66 out of 418 companies in the Utilities - Independent Power Producers industry, placing it in the top 15.8%.
Is National Hydro Power Co's Operating Margin % too high?
National Hydro Power Co's current Operating Margin % of 37.12% is 40% above median its 10-year median of 26.52. The Utilities - Independent Power Producers industry median Operating Margin % is 13.55. National Hydro Power Co's value of 37.12% is 173.9% above this industry median. Based on the distribution chart, National Hydro Power Co ranks #66 out of 418 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, National Hydro Power Co has a GF Score™ of 84/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does National Hydro Power Co's Operating Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, National Hydro Power Co ranks #66 out of 418 companies for Operating Margin %. This places National Hydro Power Co in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.55. National Hydro Power Co's value of 37.12% is 173.9% above this benchmark. While the company's 10-year median is 26.52 vs. the industry median of 13.55, National Hydro Power Co 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 an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.55, based on 418 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. National Hydro Power Co's current Operating Margin % of 37.12% is 173.9% 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 National Hydro Power Co and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.55 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. National Hydro Power Co's current Operating Margin % is 37.12%, which is 40% above median its own 10-year median of 26.52. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is National Hydro Power Co stock overvalued right now?
Based on GuruFocus' analysis, National Hydro Power Co (XNEP:NHPC) is currently considered Modestly Undervalued. The stock's GF Value™ is NPR330.54, compared to a current price of NPR255.00 — trading 22.9% below its estimated fair value. The current Operating Margin % is 37.12%, which is 40% above median its 10-year median of 26.52 and 173.9% above the Utilities - Independent Power Producers industry median of 13.55. National Hydro Power Co's overall GF Score™ is 84/100 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 National Hydro Power Co (XNEP:NHPC), the current Operating Margin % is 37.12% as of Jan. 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 National Hydro Power Co (XNEP:NHPC) Overvalued in 2026?
Based on GuruFocus' analysis, National Hydro Power Co stock appears to be undervalued.
The current stock price of NPR255.00 is trading 22.9% below its estimated GF Value™ of NPR330.54.
GuruFocus considers National Hydro Power Co to be Modestly Undervalued.
Key valuation signals for XNEP:NHPC:
Operating Margin %: 37.12% (40% above median its 10-year median of 26.52)
GF Value™: NPR330.54 vs. price of NPR255.00 (22.9% below fair value)
Industry Position: 173.9% above the Utilities - Independent Power Producers median (#66 of 418)
No single metric tells the full story. See the XNEP:NHPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
National Hydro Power Co Ltd is engaged in the development of hydropower projects. The company's projects include Indrawati-III Hydropower Project, Lower Indrawati Hydropower Project and Lower Erkhuwa Hydropower Project.
84GF Score
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