Grand Pharmaceutical GroupCGPHF 87 Operating Margin % is 11.20% as of Dec. 2025, which is 44% below its 10-year median of 19.94. GuruFocus rates CGPHF with a GF Score™ of 87/100. The stock has 6 warning signs investors should review. Among 955 Drug Manufacturers companies, Grand Pharmaceutical Group ranks better than 66.6% on this metric.
Grand Pharmaceutical Group (OTCPK:CGPHF) 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.
Grand Pharmaceutical Group Operating Margin % Related Terms
Grand Pharmaceutical Group 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.
Grand Pharmaceutical Group Operating Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Grand Pharmaceutical Group'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.
Grand Pharmaceutical Group Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Grand Pharmaceutical Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Grand Pharmaceutical Group's Operating Margin % falls into.
Grand Pharmaceutical Group 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.
Grand Pharmaceutical Group's Operating Margin % for the fiscal year that ended in Dec. 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.
Grand Pharmaceutical Group (CGPHF) has a Operating Margin % of 11.20% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Grand Pharmaceutical Group and its competitors. This is 44% below median its historical median of 19.94. Over the past decade, Grand Pharmaceutical Group's Operating Margin % has ranged from 11.63 to 28.06. According to the industry distribution chart, Grand Pharmaceutical Group ranks #319 out of 955 companies in the Drug Manufacturers industry, placing it in the top 33.4%.
Is Grand Pharmaceutical Group's Operating Margin % too high?
Grand Pharmaceutical Group's current Operating Margin % of 11.20% is 44% below median its 10-year median of 19.94. Over the past 10 years, this metric has ranged from a low of 11.63 to a high of 28.06. The Drug Manufacturers industry median Operating Margin % is 7.45. Grand Pharmaceutical Group's value of 11.20% is 50.3% above this industry median. Based on the distribution chart, Grand Pharmaceutical Group ranks #319 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Grand Pharmaceutical Group has a GF Score™ of 87/100, reflecting its overall financial health beyond just this single metric.
How does Grand Pharmaceutical Group's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Grand Pharmaceutical Group ranks #319 out of 955 companies for Operating Margin %. This puts Grand Pharmaceutical Group in the upper half of its industry. The industry median Operating Margin % is 7.45. Grand Pharmaceutical Group's value of 11.20% is 50.3% above this benchmark. Historically, Grand Pharmaceutical Group's own Operating Margin % has ranged from 11.63 to 28.06 over the past decade. While the company's 10-year median is 19.94 vs. the industry median of 7.45, Grand Pharmaceutical Group 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Grand Pharmaceutical Group's current Operating Margin % of 11.20% is 50.3% 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 Grand Pharmaceutical Group and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grand Pharmaceutical Group's current Operating Margin % is 11.20%, which is 44% below median its own 10-year median of 19.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grand Pharmaceutical Group stock overvalued right now?
Grand Pharmaceutical Group (CGPHF) has a current Operating Margin % of 11.20%. The current Operating Margin % is 11.20%, which is 44% below median its 10-year median of 19.94 and 50.3% above the Drug Manufacturers industry median of 7.45. Grand Pharmaceutical Group's overall GF Score™ is 87/100 with 6 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 Grand Pharmaceutical Group (CGPHF), the current Operating Margin % is 11.20% as of Dec. 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.
Grand Pharmaceutical Group Ltd are principally engaged in the manufacture and sales of pharmaceutical technology products, manufacture and sales of bio-technology products as well as manufacture and sales of nuclear medicine anti-tumor diagnosis and treatment and cerebro-cardiovascular precision interventional diagnosis and treatment technology products, in the People's Republic of China. The operation of the group constitutes one single reportable segment. The company has presence in The PRC, America, Europe, Asia other than the PRC and Others. The majority of revenue comes from the PRC. Its brands are breathe, biology, Cardiovascular emergency care, Cardiovascular intervention, ENT, tumor.
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