China LiteratureFRA:C2X +1.92%78 Operating Margin % is 2.38% as of Dec. 2025, which is 73% below its 10-year median of 8.75. GuruFocus rates FRA:C2X with a GF Score™ of 78/100 and a GF Value™ of €3.49. The stock has 5 warning signs investors should review. Among 553 Interactive Media companies, China Literature ranks better than 54.61% on this metric.
China Literature (FRA:C2X) 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 Literature Operating Margin % Related Terms
China Literature Operating Margin % Historical Data
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The historical data trend for China Literature'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.
FRA:C2X vs GOOGL, META, SPOT: Operating Margin % Comparison
For the Internet Content & Information subindustry, China Literature'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 Literature Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, China Literature's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Literature'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.
China Literature'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.
China Literature (FRA:C2X) has a Operating Margin % of 2.38% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Literature and its competitors. This is 73% below median its historical median of 8.75. According to the industry distribution chart, China Literature ranks #251 out of 553 companies in the Interactive Media industry, placing it in the top 45.4%.
Is China Literature's Operating Margin % too high?
China Literature's current Operating Margin % of 2.38% is 73% below median its 10-year median of 8.75. The Interactive Media industry median Operating Margin % is 2.99. China Literature's value of 2.38% is 20.4% below this industry median. Based on the distribution chart, China Literature ranks #251 out of 553 companies in the Interactive Media industry, which is above the industry midpoint. Overall, China Literature has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does China Literature's Operating Margin % compare to GOOGL and META?
According to the Interactive Media industry distribution chart, China Literature ranks #251 out of 553 companies for Operating Margin %. This puts China Literature in the upper half of its industry. The industry median Operating Margin % is 2.99. China Literature's value of 2.38% is 20.4% below this benchmark. While the company's 10-year median is 8.75 vs. the industry median of 2.99, China Literature 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 an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.99, based on 553 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 Literature's current Operating Margin % of 2.38% is 20.4% 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 Literature and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Literature's current Operating Margin % is 2.38%, which is 73% below median its own 10-year median of 8.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Literature stock overvalued right now?
China Literature (FRA:C2X) has a current Operating Margin % of 2.38%. The stock's GF Value™ is €3.49, compared to a current price of €2.12 — trading 39.3% below its estimated fair value. The current Operating Margin % is 2.38%, which is 73% below median its 10-year median of 8.75 and 20.4% below the Interactive Media industry median of 2.99. China Literature's overall GF Score™ is 78/100 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 China Literature (FRA:C2X), the current Operating Margin % is 2.38% 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 Literature (FRA:C2X) Overvalued in 2026?
Based on GuruFocus' analysis, China Literature stock appears to be undervalued.
The current stock price of €2.12 is trading 39.3% below its estimated GF Value™ of €3.49.
Key valuation signals for FRA:C2X:
Operating Margin %: 2.38% (73% below median its 10-year median of 8.75)
GF Value™: €3.49 vs. price of €2.12 (39.3% below fair value)
Industry Position: 20.4% below the Interactive Media median (#251 of 553)
No single metric tells the full story. See the FRA:C2X stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Literature Ltd is an investment holding company. The company, along with its subsidiaries, provides online reading services, copyright commercialization, writer cultivation and brokerage, and operation of text work reading. It generates its revenue from Online reading through self-owned platform products. It operates in two segments: Online business, Intellectual property operations, and others. The Online business segment that derives the majority of revenue comprises online paid reading, online advertising, and game publishing. The Intellectual property operations and other segment include licensing and distribution of film and television properties, copyrights licensing, sales of adaptation rights and scripts, sales of physical books, and in-house online games operations.
78GF Score
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