China High Speed Transmission Equipment Group Co (OTCPK:CHSTY) 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 High Speed Transmission Equipment Group Co Operating Margin % Related Terms
China High Speed Transmission Equipment Group 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.
China High Speed Transmission Equipment Group Co Operating Margin % Chart
China High Speed Transmission Equipment Group Co Annual Data
CHSTY vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, China High Speed Transmission Equipment Group 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.
China High Speed Transmission Equipment Group Co Operating Margin % vs Industrial Products Industry
China High Speed Transmission Equipment Group 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.
China High Speed Transmission Equipment Group Co (CHSTY) has a Operating Margin % of 9.54% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China High Speed Transmission Equipment Group Co and its competitors. This is 17% above median its historical median of 8.14. Over the past decade, China High Speed Transmission Equipment Group Co's Operating Margin % has ranged from 5.67 to 20.78. According to the industry distribution chart, China High Speed Transmission Equipment Group Co ranks #795 out of 3038 companies in the Industrial Products industry, placing it in the top 26.2%.
Is China High Speed Transmission Equipment Group Co's Operating Margin % too high?
China High Speed Transmission Equipment Group Co's current Operating Margin % of 9.54% is 17% above median its 10-year median of 8.14. Over the past 10 years, this metric has ranged from a low of 5.67 to a high of 20.78. The Industrial Products industry median Operating Margin % is 6.53. China High Speed Transmission Equipment Group Co's value of 9.54% is 46.1% above this industry median. Based on the distribution chart, China High Speed Transmission Equipment Group Co ranks #795 out of 3038 companies in the Industrial Products industry, which is above the industry midpoint. Overall, China High Speed Transmission Equipment Group Co has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does China High Speed Transmission Equipment Group Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, China High Speed Transmission Equipment Group Co ranks #795 out of 3038 companies for Operating Margin %. This puts China High Speed Transmission Equipment Group Co in the upper half of its industry. The industry median Operating Margin % is 6.53. China High Speed Transmission Equipment Group Co's value of 9.54% is 46.1% above this benchmark. Historically, China High Speed Transmission Equipment Group Co's own Operating Margin % has ranged from 5.67 to 20.78 over the past decade. While the company's 10-year median is 8.14 vs. the industry median of 6.53, China High Speed Transmission Equipment Group 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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 High Speed Transmission Equipment Group Co's current Operating Margin % of 9.54% is 46.1% 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 China High Speed Transmission Equipment Group Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China High Speed Transmission Equipment Group Co's current Operating Margin % is 9.54%, which is 17% above median its own 10-year median of 8.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China High Speed Transmission Equipment Group Co stock overvalued right now?
China High Speed Transmission Equipment Group Co (CHSTY) has a current Operating Margin % of 9.54%. The stock's GF Value™ is $4.48, compared to a current price of $5.62 — trading 25.5% above its estimated fair value. The current Operating Margin % is 9.54%, which is 17% above median its 10-year median of 8.14 and 46.1% above the Industrial Products industry median of 6.53. China High Speed Transmission Equipment Group Co's overall GF Score™ is 72/100 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 China High Speed Transmission Equipment Group Co (CHSTY), the current Operating Margin % is 9.54% as of Jun. 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 High Speed Transmission Equipment Group Co (CHSTY) Overvalued in 2026?
Based on GuruFocus' analysis, China High Speed Transmission Equipment Group Co stock appears to be overvalued.
The current stock price of $5.62 is trading 25.5% above its estimated GF Value™ of $4.48.
Key valuation signals for CHSTY:
Operating Margin %: 9.54% (17% above median its 10-year median of 8.14)
GF Value™: $4.48 vs. price of $5.62 (25.5% above fair value)
Industry Position: 46.1% above the Industrial Products median (#795 of 3038)
No single metric tells the full story. See the CHSTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China High Speed Transmission Equipment Group Co Business Description
China High Speed Transmission Equipment Group Co Ltd is engaged in researching, developing, designing, manufacturing, and distributing a wide range of mechanical transmission equipment that is used in wind power and a wide range of industrial appliances and trading of goods. Its product portfolio includes Wind Energy Gearboxes, Rail Vehicle Gearboxes, Industrial Gearboxes, New Energy Vehicle Gearboxes, GearSight System, and others. The company's segment includes Wind and industrial gear transmission equipment, which generates key revenue; the Rail transportation gear transmission equipment segment; the Trading business, and others. Geographically, the company generates a majority of its revenue from the People's Republic of China and the rest from Europe, the USA, and other countries.
72GF Score
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