Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Tongqinglou Catering Co (SHSE:605108) 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.
Tongqinglou Catering Co Net Margin % Related Terms
Tongqinglou Catering 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.
SHSE:605108 vs CTAS, CPRT, GPN: Net Margin % Comparison
For the Specialty Business Services subindustry, Tongqinglou Catering 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.
Tongqinglou Catering Co Net Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Tongqinglou Catering Co's Net Margin % distribution charts can be found below:
* The bar in red indicates where Tongqinglou Catering 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.
Tongqinglou Catering Co (SHSE:605108) has a Net Margin % of -2.52% as of Jun. 2026. Net margin is the ratio of total net income to net sales. View historical data on Tongqinglou Catering Co and its competitors. Over the past decade, Tongqinglou Catering Co's Net Margin % has ranged from 1.18 to 14.28. According to the industry distribution chart, Tongqinglou Catering Co ranks #739 out of 1068 companies in the Business Services industry, placing it in the top 69.2%.
Is Tongqinglou Catering Co's Net Margin % too high?
Tongqinglou Catering Co's current Net Margin % is -2.52%. Over the past 10 years, this metric has ranged from a low of 1.18 to a high of 14.28. Based on the distribution chart, Tongqinglou Catering Co ranks #739 out of 1068 companies in the Business Services industry, which is below the industry midpoint. Overall, Tongqinglou Catering Co has a GF Score™ of 73/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Tongqinglou Catering Co's Net Margin % compare to CTAS and CPRT?
According to the Business Services industry distribution chart, Tongqinglou Catering Co ranks #739 out of 1068 companies for Net Margin %. This places Tongqinglou Catering Co in the lower half of its industry. The industry median Net Margin % is 4.03. Historically, Tongqinglou Catering Co's own Net Margin % has ranged from 1.18 to 14.28 over the past decade. 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 Business Services company?
The median Net Margin % among Business Services companies is 4.03, based on 1,068 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. 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 Tongqinglou Catering Co and its competitors. For the Business Services industry, the median Net Margin % is 4.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tongqinglou Catering Co's current Net Margin % is -2.52%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tongqinglou Catering Co stock overvalued right now?
Based on GuruFocus' analysis, Tongqinglou Catering Co (SHSE:605108) is currently considered Possible Value Trap. The stock's GF Value™ is ¥31.78, compared to a current price of ¥13.55 — trading 57.4% below its estimated fair value. The current Net Margin % is -2.52%. Tongqinglou Catering Co's overall GF Score™ is 73/100 with 11 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 Tongqinglou Catering Co (SHSE:605108), the current Net Margin % is -2.52% as of Jun. 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 Tongqinglou Catering Co (SHSE:605108) Overvalued in 2026?
Based on GuruFocus' analysis, Tongqinglou Catering Co stock appears to be undervalued.
The current stock price of ¥13.55 is trading 57.4% below its estimated GF Value™ of ¥31.78.
GuruFocus considers Tongqinglou Catering Co to be Possible Value Trap.
Key valuation signals for SHSE:605108:
Net Margin %: -2.52%
GF Value™: ¥31.78 vs. price of ¥13.55 (57.4% below fair value)
No single metric tells the full story. See the SHSE:605108 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tongqinglou Catering Co Ltd is a provider of catering services. The company provides catering (limited to branches); hotel management consulting and training services, tobacco and alcohol retail (limited to branches), conference services; wedding services, among others.
73GF Score
Get the complete analysis for SHSE:605108
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
SHSE:605108 has been successfully added to your 
