China Railway GroupFRA:CNO -9.51%44 Net Margin % is 1.85% as of Mar. 2026, which is 26% below its 10-year median of 2.49. GuruFocus rates FRA:CNO with a GF Score™ of 44/100 and a GF Value™ of €0.46 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,766 Construction companies, China Railway Group ranks worse than 63.14% on this metric.
The historical rank and industry rank for China Railway Group's Net Margin % or its related term are showing as below:
FRA:CNO'
s Net Margin % Range Over the Past 10 Years
Min: 1.94 Med: 2.49 Max: 2.78
Current: 1.97
FRA:CNO's Net Margin % is ranked worse than 63.14% of 1766
companies
in the Construction industry
Industry Median: 3.92
vs FRA:CNO: 1.97
China Railway Group (FRA:CNO) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
China Railway Group Net Margin % Related Terms
China Railway Group Net Margin % Historical Data
* Premium members only.
The historical data trend for China Railway Group's Net 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.
For the Engineering & Construction subindustry, China Railway Group's Net Margin %, along with its competitors' market caps and Net 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.
China Railway Group Net Margin % vs Construction Industry
For the Construction industry and Industrials sector, China Railway Group's Net Margin % distribution charts can be found below:
* The bar in red indicates where China Railway Group's Net Margin % falls into.
* 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.
China Railway Group (FRA:CNO) has a Net Margin % of 1.85% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on China Railway Group and its competitors. This is 26% below median its historical median of 2.49. Over the past decade, China Railway Group's Net Margin % has ranged from 1.94 to 2.78. According to the industry distribution chart, China Railway Group ranks #1115 out of 1766 companies in the Construction industry, placing it in the top 63.1%.
Is China Railway Group's Net Margin % too high?
China Railway Group's current Net Margin % of 1.85% is 26% below median its 10-year median of 2.49. Over the past 10 years, this metric has ranged from a low of 1.94 to a high of 2.78. The Construction industry median Net Margin % is 3.92. China Railway Group's value of 1.85% is 52.8% below this industry median. Based on the distribution chart, China Railway Group ranks #1115 out of 1766 companies in the Construction industry, which is below the industry midpoint. Overall, China Railway Group has a GF Score™ of 44/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Railway Group's Net Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, China Railway Group ranks #1115 out of 1766 companies for Net Margin %. This places China Railway Group in the lower half of its industry. The industry median Net Margin % is 3.92. China Railway Group's value of 1.85% is 52.8% below this benchmark. Historically, China Railway Group's own Net Margin % has ranged from 1.94 to 2.78 over the past decade. While the company's 10-year median is 2.49 vs. the industry median of 3.92, China Railway Group 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 Net Margin % for a Construction company?
The median Net Margin % among Construction companies is 3.92, based on 1,766 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Railway Group's current Net Margin % of 1.85% is 52.8% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on China Railway Group and its competitors. For the Construction industry, the median Net Margin % is 3.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Group's current Net Margin % is 1.85%, which is 26% below median its own 10-year median of 2.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Group stock overvalued right now?
Based on GuruFocus' analysis, China Railway Group (FRA:CNO) is currently considered Modestly Undervalued. The stock's GF Value™ is €0.46, compared to a current price of €0.38 — trading 17.3% below its estimated fair value. The current Net Margin % is 1.85%, which is 26% below median its 10-year median of 2.49 and 52.8% below the Construction industry median of 3.92. China Railway Group's overall GF Score™ is 44/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For China Railway Group (FRA:CNO), the current Net Margin % is 1.85% 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 China Railway Group (FRA:CNO) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Group stock appears to be undervalued.
The current stock price of €0.38 is trading 17.3% below its estimated GF Value™ of €0.46.
GuruFocus considers China Railway Group to be Modestly Undervalued.
Key valuation signals for FRA:CNO:
Net Margin %: 1.85% (26% below median its 10-year median of 2.49)
GF Value™: €0.46 vs. price of €0.38 (17.3% below fair value)
Industry Position: 52.8% below the Construction median (#1115 of 1766)
No single metric tells the full story. See the FRA:CNO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Group Ltd is a construction conglomerate company. The company's operating segment includes Infrastructure construction; Survey, design and consulting services; Engineering equipment and component manufacturing; Property development, and Other businesses. It generates maximum revenue from the Infrastructure construction segment. The Infrastructure construction segment includes the construction of railways, highways, bridges, tunnels, metropolitan railways (including subways and light railways), buildings, irrigation works, hydroelectricity projects, ports, docks, airports, and other municipal works.
44GF Score
Get the complete analysis for FRA:CNO
Net Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:CNO has been successfully added to your 
