Shimao Services HoldingsFRA:5GO -8.49%63 Operating Margin % is 6.65% as of Dec. 2025, which is 54% below its 10-year median of 14.56. GuruFocus rates FRA:5GO with a GF Score™ of 63/100 and a GF Value™ of €0.10 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 1,745 Real Estate companies, Shimao Services Holdings ranks worse than 62.01% on this metric.
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.
Shimao Services Holdings Operating Margin % Related Terms
Shimao Services 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.
FRA:5GO vs CBRE, BEKE: Operating Margin % Comparison
For the Real Estate Services subindustry, Shimao Services 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.
Shimao Services Holdings Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Shimao Services Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shimao Services Holdings's Operating Margin % falls into.
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.
Shimao Services Holdings's Operating Margin % for the fiscal year that ended in Dec. 2025 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.
Shimao Services Holdings (FRA:5GO) has a Operating Margin % of 6.65% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Shimao Services Holdings and its competitors. This is 54% below median its historical median of 14.56. Over the past decade, Shimao Services Holdings' Operating Margin % has ranged from 4.71 to 20.99. According to the industry distribution chart, Shimao Services Holdings ranks #1082 out of 1745 companies in the Real Estate industry, placing it in the top 62%.
Is Shimao Services Holdings' Operating Margin % too high?
Shimao Services Holdings' current Operating Margin % of 6.65% is 54% below median its 10-year median of 14.56. Over the past 10 years, this metric has ranged from a low of 4.71 to a high of 20.99. The Real Estate industry median Operating Margin % is 13.21. Shimao Services Holdings' value of 6.65% is 49.7% below this industry median. Based on the distribution chart, Shimao Services Holdings ranks #1082 out of 1745 companies in the Real Estate industry, which is below the industry midpoint. Overall, Shimao Services Holdings has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shimao Services Holdings' Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Shimao Services Holdings ranks #1082 out of 1745 companies for Operating Margin %. This places Shimao Services Holdings in the lower half of its industry. The industry median Operating Margin % is 13.21. Shimao Services Holdings' value of 6.65% is 49.7% below this benchmark. Historically, Shimao Services Holdings' own Operating Margin % has ranged from 4.71 to 20.99 over the past decade. While the company's 10-year median is 14.56 vs. the industry median of 13.21, Shimao Services Holdings has consistently been below 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 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. Shimao Services Holdings's current Operating Margin % of 6.65% is 49.7% 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 Shimao Services Holdings 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. Shimao Services Holdings's current Operating Margin % is 6.65%, which is 54% below median its own 10-year median of 14.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shimao Services Holdings stock overvalued right now?
Based on GuruFocus' analysis, Shimao Services Holdings (FRA:5GO) is currently considered Possible Value Trap. The stock's GF Value™ is €0.10, compared to a current price of €0.05 — trading 51.5% below its estimated fair value. The current Operating Margin % is 6.65%, which is 54% below median its 10-year median of 14.56 and 49.7% below the Real Estate industry median of 13.21. Shimao Services Holdings' overall GF Score™ is 63/100 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 Shimao Services Holdings (FRA:5GO), the current Operating Margin % is 6.65% 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 Shimao Services Holdings (FRA:5GO) Overvalued in 2026?
Based on GuruFocus' analysis, Shimao Services Holdings stock appears to be undervalued.
The current stock price of €0.05 is trading 51.5% below its estimated GF Value™ of €0.10.
GuruFocus considers Shimao Services Holdings to be Possible Value Trap.
Key valuation signals for FRA:5GO:
Operating Margin %: 6.65% (54% below median its 10-year median of 14.56)
GF Value™: €0.10 vs. price of €0.05 (51.5% below fair value)
Industry Position: 49.7% below the Real Estate median (#1082 of 1745)
No single metric tells the full story. See the FRA:5GO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shimao Services Holdings Ltd is engaged in the provision of property management services, community value-added services, value-added services to non-property owners, and city services in the People's Republic of China (the PRC). Its segments include Property management and related services, which include property management services, community value-added services, and value-added services to non-property owners; and City services, which include sanitation, cleaning, sewage, and waste treatment business. It derives the majority of revenue from the Property management and related services segment from the PRC.
63GF Score
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