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Shanghai HYSEA Industrial Communications Co (BJSE:920405) 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.
Shanghai HYSEA Industrial Communications Co Operating Margin % Related Terms
Shanghai HYSEA Industrial Communications Co Operating 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.
Shanghai HYSEA Industrial Communications Co Operating Margin % Chart
Shanghai HYSEA Industrial Communications Co Annual Data
BJSE:920405 vs COHR, KEYS, GRMN: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Shanghai HYSEA Industrial Communications 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.
Shanghai HYSEA Industrial Communications Co Operating Margin % vs Hardware Industry
Shanghai HYSEA Industrial Communications 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.
* 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.
Shanghai HYSEA Industrial Communications Co (BJSE:920405) has a Operating Margin % of 5.68% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai HYSEA Industrial Communications Co and its competitors. This is 84% below median its historical median of 35.12. Over the past decade, Shanghai HYSEA Industrial Communications Co's Operating Margin % has ranged from 12.73 to 38.03. According to the industry distribution chart, Shanghai HYSEA Industrial Communications Co ranks #324 out of 2475 companies in the Hardware industry, placing it in the top 13.1%.
Is Shanghai HYSEA Industrial Communications Co's Operating Margin % too high?
Shanghai HYSEA Industrial Communications Co's current Operating Margin % of 5.68% is 84% below median its 10-year median of 35.12. Over the past 10 years, this metric has ranged from a low of 12.73 to a high of 38.03. The Hardware industry median Operating Margin % is 3.88. Shanghai HYSEA Industrial Communications Co's value of 5.68% is 46.4% above this industry median. Based on the distribution chart, Shanghai HYSEA Industrial Communications Co ranks #324 out of 2475 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai HYSEA Industrial Communications Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai HYSEA Industrial Communications Co's Operating Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Shanghai HYSEA Industrial Communications Co ranks #324 out of 2475 companies for Operating Margin %. This places Shanghai HYSEA Industrial Communications Co in the top 13% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Shanghai HYSEA Industrial Communications Co's value of 5.68% is 46.4% above this benchmark. Historically, Shanghai HYSEA Industrial Communications Co's own Operating Margin % has ranged from 12.73 to 38.03 over the past decade. While the company's 10-year median is 35.12 vs. the industry median of 3.88, Shanghai HYSEA Industrial Communications 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 a Hardware company?
The median Operating Margin % among Hardware companies is 3.88, based on 2,475 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. Shanghai HYSEA Industrial Communications Co's current Operating Margin % of 5.68% is 46.4% 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 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 Shanghai HYSEA Industrial Communications Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai HYSEA Industrial Communications Co's current Operating Margin % is 5.68%, which is 84% below median its own 10-year median of 35.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai HYSEA Industrial Communications Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai HYSEA Industrial Communications Co (BJSE:920405) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥23.81, compared to a current price of ¥19.18 — trading 19.4% below its estimated fair value. The current Operating Margin % is 5.68%, which is 84% below median its 10-year median of 35.12 and 46.4% above the Hardware industry median of 3.88. Shanghai HYSEA Industrial Communications Co's overall GF Score™ is 79/100 with 10 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 Shanghai HYSEA Industrial Communications Co (BJSE:920405), the current Operating Margin % is 5.68% 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 Shanghai HYSEA Industrial Communications Co (BJSE:920405) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai HYSEA Industrial Communications Co stock appears to be undervalued.
The current stock price of ¥19.18 is trading 19.4% below its estimated GF Value™ of ¥23.81.
GuruFocus considers Shanghai HYSEA Industrial Communications Co to be Modestly Undervalued.
Key valuation signals for BJSE:920405:
Operating Margin %: 5.68% (84% below median its 10-year median of 35.12)
GF Value™: ¥23.81 vs. price of ¥19.18 (19.4% below fair value)
Industry Position: 46.4% above the Hardware median (#324 of 2475)
No single metric tells the full story. See the BJSE:920405 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai HYSEA Industrial Communications Co Ltd engages in research and development, production, and after-sales service of industrial wireless remote control systems and engineering machinery electrical control system solutions. It caters to various industries including metallurgy, hoisting machinery, engineering machinery, construction machinery, automobile manufacturing, paper making, shipbuilding, nuclear power generation, and other fields.
79GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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