Sanima Mai HydropowerXNEP:SHPC +0.18%75 Operating Margin % is 47.40% as of Jul. 2025, which is 29% below its 10-year median of 66.45. GuruFocus rates XNEP:SHPC with a GF Score™ of 75/100 and a GF Value™ of NPR232.03 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 417 Utilities - Independent Power Producers companies, Sanima Mai Hydropower ranks better than 95.68% on this metric.
Sanima Mai Hydropower Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -3.6%.
The historical rank and industry rank for Sanima Mai Hydropower's Operating Margin % or its related term are showing as below:
XNEP:SHPC'
s Operating Margin % Range Over the Past 10 Years
Min: 50.41 Med: 66.45 Max: 70.6
Current: 58.15
XNEP:SHPC's Operating Margin % is ranked better than 95.68% of 417
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.38
vs XNEP:SHPC: 58.15
Sanima Mai Hydropower's 5-Year Average Operating Margin % Growth Rate was -3.60% per year.
Sanima Mai Hydropower (XNEP:SHPC) 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.
Sanima Mai Hydropower Operating Margin % Related Terms
Sanima Mai Hydropower Operating Margin % Historical Data
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The historical data trend for Sanima Mai Hydropower'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.
Sanima Mai Hydropower Operating Margin % Competitor Comparison
For the Utilities - Renewable subindustry, Sanima Mai Hydropower'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.
Sanima Mai Hydropower Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Sanima Mai Hydropower's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sanima Mai Hydropower's Operating Margin % falls into.
Sanima Mai Hydropower 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.
Sanima Mai Hydropower'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.
Sanima Mai Hydropower (XNEP:SHPC) has a Operating Margin % of 47.40% as of Jul. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sanima Mai Hydropower and its competitors. This is 29% below median its historical median of 66.45. Over the past decade, Sanima Mai Hydropower's Operating Margin % has ranged from 50.41 to 70.60. According to the industry distribution chart, Sanima Mai Hydropower ranks #18 out of 417 companies in the Utilities - Independent Power Producers industry, placing it in the top 4.3%.
Is Sanima Mai Hydropower's Operating Margin % too high?
Sanima Mai Hydropower's current Operating Margin % of 47.40% is 29% below median its 10-year median of 66.45. Over the past 10 years, this metric has ranged from a low of 50.41 to a high of 70.60. The Utilities - Independent Power Producers industry median Operating Margin % is 13.38. Sanima Mai Hydropower's value of 47.40% is 254.3% above this industry median. Based on the distribution chart, Sanima Mai Hydropower ranks #18 out of 417 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Sanima Mai Hydropower has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Sanima Mai Hydropower's Operating Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Sanima Mai Hydropower ranks #18 out of 417 companies for Operating Margin %. This places Sanima Mai Hydropower in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.38. Sanima Mai Hydropower's value of 47.40% is 254.3% above this benchmark. Historically, Sanima Mai Hydropower's own Operating Margin % has ranged from 50.41 to 70.60 over the past decade. While the company's 10-year median is 66.45 vs. the industry median of 13.38, Sanima Mai Hydropower 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 13.38, based on 417 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. Sanima Mai Hydropower's current Operating Margin % of 47.40% is 254.3% 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 Sanima Mai Hydropower and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sanima Mai Hydropower's current Operating Margin % is 47.40%, which is 29% below median its own 10-year median of 66.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sanima Mai Hydropower stock overvalued right now?
Based on GuruFocus' analysis, Sanima Mai Hydropower (XNEP:SHPC) is currently considered Significantly Overvalued. The stock's GF Value™ is NPR232.03, compared to a current price of NPR495.90 — trading 113.7% above its estimated fair value. The current Operating Margin % is 47.40%, which is 29% below median its 10-year median of 66.45 and 254.3% above the Utilities - Independent Power Producers industry median of 13.38. Sanima Mai Hydropower's overall GF Score™ is 75/100 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 Sanima Mai Hydropower (XNEP:SHPC), the current Operating Margin % is 47.40% as of Jul. 2025. 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 Sanima Mai Hydropower (XNEP:SHPC) Overvalued in 2026?
Based on GuruFocus' analysis, Sanima Mai Hydropower stock appears to be overvalued.
The current stock price of NPR495.90 is trading 113.7% above its estimated GF Value™ of NPR232.03.
GuruFocus considers Sanima Mai Hydropower to be Significantly Overvalued.
Key valuation signals for XNEP:SHPC:
Operating Margin %: 47.40% (29% below median its 10-year median of 66.45)
GF Value™: NPR232.03 vs. price of NPR495.90 (113.7% above fair value)
Industry Position: 254.3% above the Utilities - Independent Power Producers median (#18 of 417)
No single metric tells the full story. See the XNEP:SHPC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sanima Mai Hydropower Ltd is a hydropower company. Its activity is to generate and sell hydroelectricity to the Nepal Electricity Authority. The company's operating segment include Mai Hydropower Plant and Mai Cascade Hydropower Plant. It generates maximum revenue from the Mai Hydropower Plant segment. The Mai Hydropower Project is a run-of-the-river hydropower plant with an installed capacity of 22MW.
75GF Score
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