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Hebei Construction GroupFRA:H9D 40 Operating Margin % is 1.45% as of Dec. 2025, which is 58% below its 10-year median of 3.42. GuruFocus rates FRA:H9D with a GF Score™ of 40/100 and a GF Value™ of €0.03. The stock has 7 warning signs investors should review. Among 1,772 Construction companies, Hebei Construction Group ranks worse than 67.49% on this metric.
Hebei Construction Group (FRA:H9D) 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.
Hebei Construction Group Operating Margin % Related Terms
Hebei Construction Group 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:H9D vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Hebei Construction 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.
Hebei Construction Group Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Hebei Construction Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hebei Construction Group's Operating Margin % falls into.
Hebei Construction 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.
Hebei Construction Group'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.
Hebei Construction Group (FRA:H9D) has a Operating Margin % of 1.45% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hebei Construction Group and its competitors. This is 58% below median its historical median of 3.42. Over the past decade, Hebei Construction Group's Operating Margin % has ranged from 2.00 to 4.55. According to the industry distribution chart, Hebei Construction Group ranks #1196 out of 1772 companies in the Construction industry, placing it in the top 67.5%.
Is Hebei Construction Group's Operating Margin % too high?
Hebei Construction Group's current Operating Margin % of 1.45% is 58% below median its 10-year median of 3.42. Over the past 10 years, this metric has ranged from a low of 2.00 to a high of 4.55. The Construction industry median Operating Margin % is 5.91. Hebei Construction Group's value of 1.45% is 75.5% below this industry median. Based on the distribution chart, Hebei Construction Group ranks #1196 out of 1772 companies in the Construction industry, which is below the industry midpoint. Overall, Hebei Construction Group has a GF Score™ of 40/100, reflecting its overall financial health beyond just this single metric.
How does Hebei Construction Group's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Hebei Construction Group ranks #1196 out of 1772 companies for Operating Margin %. This places Hebei Construction Group in the lower half of its industry. The industry median Operating Margin % is 5.91. Hebei Construction Group's value of 1.45% is 75.5% below this benchmark. Historically, Hebei Construction Group's own Operating Margin % has ranged from 2.00 to 4.55 over the past decade. While the company's 10-year median is 3.42 vs. the industry median of 5.91, Hebei Construction Group 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 Construction company?
The median Operating Margin % among Construction companies is 5.91, based on 1,772 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. Hebei Construction Group's current Operating Margin % of 1.45% is 75.5% 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 Hebei Construction Group and its competitors. For the Construction industry, the median Operating Margin % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hebei Construction Group's current Operating Margin % is 1.45%, which is 58% below median its own 10-year median of 3.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hebei Construction Group stock overvalued right now?
Hebei Construction Group (FRA:H9D) has a current Operating Margin % of 1.45%. The stock's GF Value™ is €0.03, compared to a current price of €0.02 — trading 21.7% below its estimated fair value. The current Operating Margin % is 1.45%, which is 58% below median its 10-year median of 3.42 and 75.5% below the Construction industry median of 5.91. Hebei Construction Group's overall GF Score™ is 40/100 with 7 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 Hebei Construction Group (FRA:H9D), the current Operating Margin % is 1.45% 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 Hebei Construction Group (FRA:H9D) Overvalued in 2026?
Based on GuruFocus' analysis, Hebei Construction Group stock appears to be undervalued.
The current stock price of €0.02 is trading 21.7% below its estimated GF Value™ of €0.03.
Key valuation signals for FRA:H9D:
Operating Margin %: 1.45% (58% below median its 10-year median of 3.42)
GF Value™: €0.03 vs. price of €0.02 (21.7% below fair value)
Industry Position: 75.5% below the Construction median (#1196 of 1772)
No single metric tells the full story. See the FRA:H9D stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hebei Construction Group Corp Ltd is an engineering and construction company. The company's services include construction contracting works of residential, public, industrial, and commercial buildings. It has two segments that are Construction contracting business and Other business. The construction contracting business segment provides general contractors for building construction projects and infrastructure construction projects. Other segment mainly includes concession arrangements and other services of the group. The majority of the group's revenue is generated from Mainland China.
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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