China Merchants Bank CoFRA:M4B -2.00%63 Net Margin % is 43.54% as of Mar. 2026, which is 22% above its 10-year median of 35.65. GuruFocus rates FRA:M4B with a GF Score™ of 63/100 and a GF Value™ of €5.44 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,526 Banks companies, China Merchants Bank Co ranks better than 90.5% on this metric.
The historical rank and industry rank for China Merchants Bank Co's Net Margin % or its related term are showing as below:
FRA:M4B'
s Net Margin % Range Over the Past 10 Years
Min: 29.65 Med: 35.65 Max: 45.23
Current: 45.19
FRA:M4B's Net Margin % is ranked better than 90.5% of 1526
companies
in the Banks industry
Industry Median: 26.97
vs FRA:M4B: 45.19
China Merchants Bank Co (FRA:M4B) 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 Merchants Bank Co Net Margin % Related Terms
China Merchants Bank Co Net Margin % Historical Data
* 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 Merchants Bank Co Net Margin % Competitor Comparison
For the Banks - Regional subindustry, China Merchants Bank Co'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 Merchants Bank Co Net Margin % vs Banks Industry
For the Banks industry and Financial Services sector, China Merchants Bank Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where China Merchants Bank Co'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 Merchants Bank Co (FRA:M4B) has a Net Margin % of 43.54% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on China Merchants Bank Co and its competitors. This is 22% above median its historical median of 35.65. Over the past decade, China Merchants Bank Co's Net Margin % has ranged from 29.65 to 45.23. According to the industry distribution chart, China Merchants Bank Co ranks #145 out of 1526 companies in the Banks industry, placing it in the top 9.5%.
Is China Merchants Bank Co's Net Margin % too high?
China Merchants Bank Co's current Net Margin % of 43.54% is 22% above median its 10-year median of 35.65. Over the past 10 years, this metric has ranged from a low of 29.65 to a high of 45.23. The Banks industry median Net Margin % is 26.97. China Merchants Bank Co's value of 43.54% is 61.4% above this industry median. Based on the distribution chart, China Merchants Bank Co ranks #145 out of 1526 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, China Merchants Bank Co has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Bank Co's Net Margin % compare to competitors?
According to the Banks industry distribution chart, China Merchants Bank Co ranks #145 out of 1526 companies for Net Margin %. This places China Merchants Bank Co in the top 10% of its industry — outperforming the majority of peers. The industry median Net Margin % is 26.97. China Merchants Bank Co's value of 43.54% is 61.4% above this benchmark. Historically, China Merchants Bank Co's own Net Margin % has ranged from 29.65 to 45.23 over the past decade. While the company's 10-year median is 35.65 vs. the industry median of 26.97, China Merchants Bank 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 Net Margin % for a Banks company?
The median Net Margin % among Banks companies is 26.97, based on 1,526 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 Merchants Bank Co's current Net Margin % of 43.54% is 61.4% 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 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 Merchants Bank Co and its competitors. For the Banks industry, the median Net Margin % is 26.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Bank Co's current Net Margin % is 43.54%, which is 22% above median its own 10-year median of 35.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Bank Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Bank Co (FRA:M4B) is currently considered Fairly Valued. The stock's GF Value™ is €5.44, compared to a current price of €5.09 — trading 6.5% below its estimated fair value. The current Net Margin % is 43.54%, which is 22% above median its 10-year median of 35.65 and 61.4% above the Banks industry median of 26.97. China Merchants Bank Co's overall GF Score™ is 63/100 with 2 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 Merchants Bank Co (FRA:M4B), the current Net Margin % is 43.54% 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 Merchants Bank Co (FRA:M4B) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Bank Co stock appears to be undervalued.
The current stock price of €5.09 is trading 6.5% below its estimated GF Value™ of €5.44.
GuruFocus considers China Merchants Bank Co to be Fairly Valued.
Key valuation signals for FRA:M4B:
Net Margin %: 43.54% (22% above median its 10-year median of 35.65)
GF Value™: €5.44 vs. price of €5.09 (6.5% below fair value)
Industry Position: 61.4% above the Banks median (#145 of 1526)
No single metric tells the full story. See the FRA:M4B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Bank was founded in 1987 and is headquartered in Shenzhen. The bank is China's seventh-largest listed bank by assets, with the largest distribution network among China's joint-stock banks. CMB's network has been expanding rapidly. Its outlets are located mainly in China's more developed areas, including the Pearl River and Yangtze River deltas. The firm has 18% and 82% of its shares listed on the Hong Kong and Shanghai exchanges, respectively. It has no foreign strategic investors. China Merchants Group is its largest shareholder, with a 30% stake. Retail banking, corporate banking, and wholesale banking accounted for 49%, 51%, and 0% of total profit before tax, respectively, and 40%, 58%, and 2% of total revenue in 2024.
63GF Score
Get the complete analysis for FRA:M4B
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:M4B has been successfully added to your 
