Cosco Shipping Development Co (OTCPK:CITAY) 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.
Cosco Shipping Development Co Operating Margin % Related Terms
Cosco Shipping Development 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.
Cosco Shipping Development Co Operating Margin % Chart
CITAY vs GE, RTX, BA: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Cosco Shipping Development 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.
Cosco Shipping Development Co Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Cosco Shipping Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cosco Shipping Development Co's Operating Margin % falls into.
Cosco Shipping Development 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.
Cosco Shipping Development Co (CITAY) has a Operating Margin % of 9.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cosco Shipping Development Co and its competitors. This is 48% below median its historical median of 19.31. Over the past decade, Cosco Shipping Development Co's Operating Margin % has ranged from 6.24 to 24.76. According to the industry distribution chart, Cosco Shipping Development Co ranks #96 out of 347 companies in the Aerospace & Defense industry, placing it in the top 27.7%.
Is Cosco Shipping Development Co's Operating Margin % too high?
Cosco Shipping Development Co's current Operating Margin % of 9.99% is 48% below median its 10-year median of 19.31. Over the past 10 years, this metric has ranged from a low of 6.24 to a high of 24.76. The Aerospace & Defense industry median Operating Margin % is 7.75. Cosco Shipping Development Co's value of 9.99% is 28.9% above this industry median. Based on the distribution chart, Cosco Shipping Development Co ranks #96 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Cosco Shipping Development Co has a GF Score™ of 63/100, reflecting its overall financial health beyond just this single metric.
How does Cosco Shipping Development Co's Operating Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Cosco Shipping Development Co ranks #96 out of 347 companies for Operating Margin %. This puts Cosco Shipping Development Co in the upper half of its industry. The industry median Operating Margin % is 7.75. Cosco Shipping Development Co's value of 9.99% is 28.9% above this benchmark. Historically, Cosco Shipping Development Co's own Operating Margin % has ranged from 6.24 to 24.76 over the past decade. While the company's 10-year median is 19.31 vs. the industry median of 7.75, Cosco Shipping Development 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 Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 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. Cosco Shipping Development Co's current Operating Margin % of 9.99% is 28.9% 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 Cosco Shipping Development Co and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cosco Shipping Development Co's current Operating Margin % is 9.99%, which is 48% below median its own 10-year median of 19.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cosco Shipping Development Co stock overvalued right now?
Cosco Shipping Development Co (CITAY) has a current Operating Margin % of 9.99%. The stock's GF Value™ is $8.99, compared to a current price of $7.00 — trading 22.1% below its estimated fair value. The current Operating Margin % is 9.99%, which is 48% below median its 10-year median of 19.31 and 28.9% above the Aerospace & Defense industry median of 7.75. Cosco Shipping Development Co's overall GF Score™ is 63/100 with 8 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 Cosco Shipping Development Co (CITAY), the current Operating Margin % is 9.99% 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 Cosco Shipping Development Co (CITAY) Overvalued in 2026?
Based on GuruFocus' analysis, Cosco Shipping Development Co stock appears to be undervalued.
The current stock price of $7.00 is trading 22.1% below its estimated GF Value™ of $8.99.
Key valuation signals for CITAY:
Operating Margin %: 9.99% (48% below median its 10-year median of 19.31)
GF Value™: $8.99 vs. price of $7.00 (22.1% below fair value)
Industry Position: 28.9% above the Aerospace & Defense median (#96 of 347)
No single metric tells the full story. See the CITAY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cosco Shipping Development Co Business Description
Cosco Shipping Development Co Ltd is a China-based company operating and managing container shipping. Its services include container transportation, vessel chartering, cargo canvassing and booking, customs clearance, depot services, container construction, sales, purchase, and vessel management. The operating business segments are the Shipping leasing and container leasing business segment, which derives maximum revenue, renders vessel chartering, container leasing, and finance lease services; the Container manufacturing segment, which manufactures and sells containers; the Investment management business segment, which focuses on equity or debt investment and insurance brokerage services. geographically , the company derives maximum revenue from Chinese Mainland.
63GF Score
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