China National Building Material Co (FRA:D1Y) 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 National Building Material Co Operating Margin % Related Terms
China National Building Material 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.
China National Building Material Co Operating Margin % Chart
FRA:D1Y vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, China National Building Material 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.
China National Building Material Co Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, China National Building Material Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China National Building Material Co's Operating Margin % falls into.
China National Building Material 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.
China National Building Material Co (FRA:D1Y) has a Operating Margin % of -13.91% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China National Building Material Co and its competitors. Over the past decade, China National Building Material Co's Operating Margin % has ranged from 2.44 to 14.29. According to the industry distribution chart, China National Building Material Co ranks #282 out of 404 companies in the Building Materials industry, placing it in the top 69.8%.
Is China National Building Material Co's Operating Margin % too high?
China National Building Material Co's current Operating Margin % is -13.91%. Over the past 10 years, this metric has ranged from a low of 2.44 to a high of 14.29. Based on the distribution chart, China National Building Material Co ranks #282 out of 404 companies in the Building Materials industry, which is below the industry midpoint. Overall, China National Building Material Co has a GF Score™ of 44/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China National Building Material Co's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, China National Building Material Co ranks #282 out of 404 companies for Operating Margin %. This places China National Building Material Co in the lower half of its industry. The industry median Operating Margin % is 7.65. Historically, China National Building Material Co's own Operating Margin % has ranged from 2.44 to 14.29 over the past decade. 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.65, based on 404 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. 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 National Building Material Co and its competitors. For the Building Materials industry, the median Operating Margin % is 7.65 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China National Building Material Co's current Operating Margin % is -13.91%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China National Building Material Co stock overvalued right now?
Based on GuruFocus' analysis, China National Building Material Co (FRA:D1Y) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.48, compared to a current price of €0.65 — trading 35.2% above its estimated fair value. The current Operating Margin % is -13.91%. China National Building Material Co's overall GF Score™ is 44/100 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 China National Building Material Co (FRA:D1Y), the current Operating Margin % is -13.91% 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 National Building Material Co (FRA:D1Y) Overvalued in 2026?
Based on GuruFocus' analysis, China National Building Material Co stock appears to be overvalued.
The current stock price of €0.65 is trading 35.2% above its estimated GF Value™ of €0.48.
GuruFocus considers China National Building Material Co to be Significantly Overvalued.
Key valuation signals for FRA:D1Y:
Operating Margin %: -13.91%
GF Value™: €0.48 vs. price of €0.65 (35.2% above fair value)
No single metric tells the full story. See the FRA:D1Y stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China National Building Material Co Business Description
China National Building Material Co Ltd. is a state-owned building material holding company. It has three reportable segments: Basic building materials segment, New materials segment, and Engineering technology service segment. The company's majority of revenue is from the Basic building materials segment. Geographically, the company operates in the PRC, Asia, Europe, the Middle East, Africa, the Americas, and other regions, with the maximum revenue from the PRC and Africa.
44GF Score
Get the complete analysis for FRA:D1Y
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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