The historical rank and industry rank for China Evergrande Group's Operating Margin % or its related term are showing as below:
EGRNF's Operating Margin % is not ranked *
in the Real Estate industry.
Industry Median: 13.21 * Ranked among companies with meaningful Operating Margin % only.
China Evergrande Group's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
China Evergrande Group (OTCPK:EGRNF) 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 Evergrande Group Operating Margin % Related Terms
China Evergrande Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for China Evergrande Group'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.
China Evergrande Group Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, China Evergrande 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.
China Evergrande Group Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Evergrande Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Evergrande Group's Operating Margin % falls into.
China Evergrande 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.
China Evergrande Group's Operating Margin % for the fiscal year that ended in Dec. 2022 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 Evergrande Group (EGRNF) has a Operating Margin % of 0.56% as of Jun. 2023. Operating margin is the ratio of total operating income to net sales. View historical data on China Evergrande Group and its competitors.
Is China Evergrande Group's Operating Margin % too high?
China Evergrande Group's current Operating Margin % is 0.56%. The Real Estate industry median Operating Margin % is 13.21. China Evergrande Group's value of 0.56% is 95.8% below this industry median. Overall, China Evergrande Group has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does China Evergrande Group's Operating Margin % compare to competitors?
China Evergrande Group's Operating Margin % of 0.56% can be compared against companies in the Real Estate industry. The industry median Operating Margin % is 13.21. China Evergrande Group's value of 0.56% is 95.8% below this benchmark. 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 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 Evergrande Group's current Operating Margin % of 0.56% is 95.8% 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 Evergrande Group and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Evergrande Group's current Operating Margin % is 0.56%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Evergrande Group stock overvalued right now?
China Evergrande Group (EGRNF) has a current Operating Margin % of 0.56%. The current Operating Margin % is 0.56% and 95.8% below the Real Estate industry median of 13.21. China Evergrande Group's overall GF Score™ is 12/100. 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 Evergrande Group (EGRNF), the current Operating Margin % is 0.56% as of Jun. 2023. 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.
China Evergrande Group is engaged in the property development, property investment, property management, new energy vehicle business, cultural tourism business and health industry business principally in the People's Republic of China. The company is organized into four business segments: property development, property investment, property management and other businesses. Other businesses mainly include new energy vehicle business, cultural tourism business, health industry business and investment business.
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