China FoodsCHFHY 81 Operating Margin % is 6.14% as of Dec. 2025, which is 3% below its 10-year median of 6.34. GuruFocus rates CHFHY with a GF Score™ of 81/100 and a GF Value™ of $7.93 (Modestly Overvalued). The stock has 1 warning sign investors should review. Among 116 Beverages - Non-Alcoholic companies, China Foods ranks worse than 53.45% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. China Foods's Operating Income for the
six
months ended in Dec. 2025 was $85 Mil. China Foods's Revenue for the
six
months ended in Dec. 2025 was $1,390 Mil. Therefore, China Foods's Operating Margin % for the quarter that ended in Dec. 2025 was 6.14%.
Good Sign:
China Foods Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for China Foods's Operating Margin % or its related term are showing as below:
CHFHY'
s Operating Margin % Range Over the Past 10 Years
Min: 3.14 Med: 6.34 Max: 8.62
Current: 8.61
CHFHY's Operating Margin % is ranked worse than 53.45% of 116
companies
in the Beverages - Non-Alcoholic industry
Industry Median: 8.975
vs CHFHY: 8.61
China Foods's 5-Year Average Operating Margin % Growth Rate was 7.80% per year.
China Foods's Operating Income for the
six
months ended in Dec. 2025 was $85 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $266 Mil.
China Foods (OTCPK:CHFHY) 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.
China Foods Operating Margin % Related Terms
China Foods Operating Margin % Historical Data
* Premium members only.
The historical data trend for China Foods's Operating 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.
CHFHY vs KO, PEP, MNST: Operating Margin % Comparison
For the Beverages - Non-Alcoholic subindustry, China Foods'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.
China Foods Operating Margin % vs Beverages - Non-Alcoholic Industry
For the Beverages - Non-Alcoholic industry and Consumer Defensive sector, China Foods's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Foods's Operating Margin % falls into.
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.
China Foods'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.
China Foods (CHFHY) has a Operating Margin % of 6.14% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Foods and its competitors. This is near median its historical median of 6.34. Over the past decade, China Foods' Operating Margin % has ranged from 3.14 to 8.62. According to the industry distribution chart, China Foods ranks #62 out of 116 companies in the Beverages - Non-Alcoholic industry, placing it in the top 53.4%.
Is China Foods' Operating Margin % too high?
China Foods' current Operating Margin % of 6.14% is near median its 10-year median of 6.34. Over the past 10 years, this metric has ranged from a low of 3.14 to a high of 8.62. The Beverages - Non-Alcoholic industry median Operating Margin % is 8.98. China Foods' value of 6.14% is 31.6% below this industry median. Based on the distribution chart, China Foods ranks #62 out of 116 companies in the Beverages - Non-Alcoholic industry, which is below the industry midpoint. Overall, China Foods has a GF Score™ of 81/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Foods' Operating Margin % compare to KO and PEP?
According to the Beverages - Non-Alcoholic industry distribution chart, China Foods ranks #62 out of 116 companies for Operating Margin %. This places China Foods in the lower half of its industry. The industry median Operating Margin % is 8.98. China Foods' value of 6.14% is 31.6% below this benchmark. Historically, China Foods' own Operating Margin % has ranged from 3.14 to 8.62 over the past decade. While the company's 10-year median is 6.34 vs. the industry median of 8.98, China Foods 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 Operating Margin % for a Beverages - Non-Alcoholic company?
The median Operating Margin % among Beverages - Non-Alcoholic companies is 8.98, based on 116 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. China Foods's current Operating Margin % of 6.14% is 31.6% 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 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 China Foods and its competitors. For the Beverages - Non-Alcoholic industry, the median Operating Margin % is 8.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Foods's current Operating Margin % is 6.14%, which is near median its own 10-year median of 6.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Foods stock overvalued right now?
Based on GuruFocus' analysis, China Foods (CHFHY) is currently considered Modestly Overvalued. The stock's GF Value™ is $7.93, compared to a current price of $9.46 — trading 19.2% above its estimated fair value. The current Operating Margin % is 6.14%, which is near median its 10-year median of 6.34 and 31.6% below the Beverages - Non-Alcoholic industry median of 8.98. China Foods' overall GF Score™ is 81/100 with 1 warning sign 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 China Foods (CHFHY), the current Operating Margin % is 6.14% 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.
Is China Foods (CHFHY) Overvalued in 2026?
Based on GuruFocus' analysis, China Foods stock appears to be overvalued.
The current stock price of $9.46 is trading 19.2% above its estimated GF Value™ of $7.93.
GuruFocus considers China Foods to be Modestly Overvalued.
Key valuation signals for CHFHY:
Operating Margin %: 6.14% (near median its 10-year median of 6.34)
GF Value™: $7.93 vs. price of $9.46 (19.2% above fair value)
Industry Position: 31.6% below the Beverages - Non-Alcoholic median (#62 of 116)
No single metric tells the full story. See the CHFHY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Foods Ltd is an investment holding company that operates in the beverage business. It offers twenty-four brands of products in ten types of beverages which include sparkling drink, juice, water, milk drink, energy drink, tea, coffee, functional nutrition drink, sports drink, plant-based protein drink, and alcoholic drink.
81GF 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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