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China Medical System HoldingsCHSYF +0.11%87 Operating Margin % is 19.18% as of Dec. 2025, which is 47% below its 10-year median of 36.29. GuruFocus rates CHSYF with a GF Score™ of 87/100 and a GF Value™ of $1.30 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 960 Drug Manufacturers companies, China Medical System Holdings ranks better than 81.67% on this metric.
China Medical System Holdings (OTCPK:CHSYF) 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 Medical System Holdings Operating Margin % Related Terms
China Medical System Holdings 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 Medical System Holdings Operating Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, China Medical System Holdings'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 Medical System Holdings Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, China Medical System Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Medical System Holdings's Operating Margin % falls into.
China Medical System Holdings 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 Medical System Holdings (CHSYF) has a Operating Margin % of 19.18% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Medical System Holdings and its competitors. This is 47% below median its historical median of 36.29. Over the past decade, China Medical System Holdings' Operating Margin % has ranged from 19.99 to 40.46. According to the industry distribution chart, China Medical System Holdings ranks #176 out of 960 companies in the Drug Manufacturers industry, placing it in the top 18.3%.
Is China Medical System Holdings' Operating Margin % too high?
China Medical System Holdings' current Operating Margin % of 19.18% is 47% below median its 10-year median of 36.29. Over the past 10 years, this metric has ranged from a low of 19.99 to a high of 40.46. The Drug Manufacturers industry median Operating Margin % is 7.60. China Medical System Holdings' value of 19.18% is 152.5% above this industry median. Based on the distribution chart, China Medical System Holdings ranks #176 out of 960 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, China Medical System Holdings has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Medical System Holdings' Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, China Medical System Holdings ranks #176 out of 960 companies for Operating Margin %. This places China Medical System Holdings in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.60. China Medical System Holdings' value of 19.18% is 152.5% above this benchmark. Historically, China Medical System Holdings' own Operating Margin % has ranged from 19.99 to 40.46 over the past decade. While the company's 10-year median is 36.29 vs. the industry median of 7.60, China Medical System Holdings 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 7.60, based on 960 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 Medical System Holdings's current Operating Margin % of 19.18% is 152.5% 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 Medical System Holdings and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Medical System Holdings's current Operating Margin % is 19.18%, which is 47% below median its own 10-year median of 36.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Medical System Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Medical System Holdings (CHSYF) is currently considered Modestly Overvalued. The stock's GF Value™ is $1.30, compared to a current price of $1.57 — trading 20.8% above its estimated fair value. The current Operating Margin % is 19.18%, which is 47% below median its 10-year median of 36.29 and 152.5% above the Drug Manufacturers industry median of 7.60. China Medical System Holdings' overall GF Score™ is 87/100 with 3 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 Medical System Holdings (CHSYF), the current Operating Margin % is 19.18% 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 Medical System Holdings (CHSYF) Overvalued in 2026?
Based on GuruFocus' analysis, China Medical System Holdings stock appears to be overvalued.
The current stock price of $1.57 is trading 20.8% above its estimated GF Value™ of $1.30.
GuruFocus considers China Medical System Holdings to be Modestly Overvalued.
Key valuation signals for CHSYF:
Operating Margin %: 19.18% (47% below median its 10-year median of 36.29)
GF Value™: $1.30 vs. price of $1.57 (20.8% above fair value)
Industry Position: 152.5% above the Drug Manufacturers median (#176 of 960)
No single metric tells the full story. See the CHSYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Medical System Holdings Business Description
China Medical System Holdings Ltd is a holding company. Along with its subsidiaries, it is engaged in the research and development, production, promotion and sale of medicines. The company's reportable segments are: (i) Integrated pharmaceuticals portfolio and (ii) Skin diseases related business. The majority of the company's revenue, which consists of pharmaceutical products sales, is derived from the integrated pharmaceuticals portfolio segment.
87GF Score
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