Kunming Dianchi Water Treatment Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Kunming Dianchi Water Treatment Co's Operating Margin % or its related term are showing as below:
FRA:1KD'
s Operating Margin % Range Over the Past 10 Years
Min: 25.46 Med: 35.71 Max: 44.76
Current: 44.76
FRA:1KD's Operating Margin % is ranked better than 94.99% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs FRA:1KD: 44.76
Kunming Dianchi Water Treatment Co (FRA:1KD) 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.
Kunming Dianchi Water Treatment Co Operating Margin % Related Terms
Kunming Dianchi Water Treatment 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.
Kunming Dianchi Water Treatment Co Operating Margin % Chart
FRA:1KD vs AWK, WTRG, AWR: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, Kunming Dianchi Water Treatment 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.
Kunming Dianchi Water Treatment Co Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Kunming Dianchi Water Treatment Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kunming Dianchi Water Treatment Co's Operating Margin % falls into.
Kunming Dianchi Water Treatment 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.
Kunming Dianchi Water Treatment Co (FRA:1KD) has a Operating Margin % of 45.80% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kunming Dianchi Water Treatment Co and its competitors. This is 28% above median its historical median of 35.71. Over the past decade, Kunming Dianchi Water Treatment Co's Operating Margin % has ranged from 25.46 to 44.76. According to the industry distribution chart, Kunming Dianchi Water Treatment Co ranks #25 out of 499 companies in the Utilities - Regulated industry, placing it in the top 5%.
Is Kunming Dianchi Water Treatment Co's Operating Margin % too high?
Kunming Dianchi Water Treatment Co's current Operating Margin % of 45.80% is 28% above median its 10-year median of 35.71. Over the past 10 years, this metric has ranged from a low of 25.46 to a high of 44.76. The Utilities - Regulated industry median Operating Margin % is 14.97. Kunming Dianchi Water Treatment Co's value of 45.80% is 205.9% above this industry median. Based on the distribution chart, Kunming Dianchi Water Treatment Co ranks #25 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Kunming Dianchi Water Treatment Co has a GF Score™ of 50/100, reflecting its overall financial health beyond just this single metric.
How does Kunming Dianchi Water Treatment Co's Operating Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Kunming Dianchi Water Treatment Co ranks #25 out of 499 companies for Operating Margin %. This places Kunming Dianchi Water Treatment Co in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. Kunming Dianchi Water Treatment Co's value of 45.80% is 205.9% above this benchmark. Historically, Kunming Dianchi Water Treatment Co's own Operating Margin % has ranged from 25.46 to 44.76 over the past decade. While the company's 10-year median is 35.71 vs. the industry median of 14.97, Kunming Dianchi Water Treatment 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 Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Kunming Dianchi Water Treatment Co's current Operating Margin % of 45.80% is 205.9% 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 Kunming Dianchi Water Treatment Co and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kunming Dianchi Water Treatment Co's current Operating Margin % is 45.80%, which is 28% above median its own 10-year median of 35.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kunming Dianchi Water Treatment Co stock overvalued right now?
Kunming Dianchi Water Treatment Co (FRA:1KD) has a current Operating Margin % of 45.80%. The stock's GF Value™ is €0.05, compared to a current price of €0.04 — trading 20% below its estimated fair value. The current Operating Margin % is 45.80%, which is 28% above median its 10-year median of 35.71 and 205.9% above the Utilities - Regulated industry median of 14.97. Kunming Dianchi Water Treatment Co's overall GF Score™ is 50/100 with 5 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 Kunming Dianchi Water Treatment Co (FRA:1KD), the current Operating Margin % is 45.80% 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 Kunming Dianchi Water Treatment Co (FRA:1KD) Overvalued in 2026?
Based on GuruFocus' analysis, Kunming Dianchi Water Treatment Co stock appears to be undervalued.
The current stock price of €0.04 is trading 20% below its estimated GF Value™ of €0.05.
Key valuation signals for FRA:1KD:
Operating Margin %: 45.80% (28% above median its 10-year median of 35.71)
GF Value™: €0.05 vs. price of €0.04 (20% below fair value)
Industry Position: 205.9% above the Utilities - Regulated median (#25 of 499)
No single metric tells the full story. See the FRA:1KD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kunming Dianchi Water Treatment Co Business Description
Kunming Dianchi Water Treatment Co Ltd, and its subsidiaries, are principally engaged in the development, design, construction, operation and maintenance of water supply and wastewater treatment facilities in the PRC. The company's reportable segments are as follows: i) Wastewater treatment; ii) Water supply; and iii) Others, including management services, transportation services, construction services, thermal production and treasury functions. The majority of the company's revenue is derived from the Wastewater treatment segment. Geographically, the company's operations are principally located in the PRC.
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