XJ International Holdings CoFRA:HE1 54 Operating Margin % is 27.04% as of Feb. 2026, which is 11% above its 10-year median of 24.34. GuruFocus rates FRA:HE1 with a GF Score™ of 54/100 and a GF Value™ of €0.03. The stock has 5 warning signs investors should review. Among 255 Education companies, XJ International Holdings Co ranks better than 74.51% on this metric.
XJ International Holdings Co (FRA:HE1) 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.
XJ International Holdings Co Operating Margin % Related Terms
XJ International Holdings 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.
XJ International Holdings Co Operating Margin % Chart
FRA:HE1 vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, XJ International Holdings 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.
XJ International Holdings Co Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, XJ International Holdings Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where XJ International Holdings Co's Operating Margin % falls into.
XJ International Holdings 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.
XJ International Holdings Co (FRA:HE1) has a Operating Margin % of 27.04% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on XJ International Holdings Co and its competitors. This is 11% above median its historical median of 24.34. Over the past decade, XJ International Holdings Co's Operating Margin % has ranged from 18.63 to 35.12. According to the industry distribution chart, XJ International Holdings Co ranks #65 out of 255 companies in the Education industry, placing it in the top 25.5%.
Is XJ International Holdings Co's Operating Margin % too high?
XJ International Holdings Co's current Operating Margin % of 27.04% is 11% above median its 10-year median of 24.34. Over the past 10 years, this metric has ranged from a low of 18.63 to a high of 35.12. The Education industry median Operating Margin % is 9.59. XJ International Holdings Co's value of 27.04% is 182% above this industry median. Based on the distribution chart, XJ International Holdings Co ranks #65 out of 255 companies in the Education industry, which is above the industry midpoint. Overall, XJ International Holdings Co has a GF Score™ of 54/100, reflecting its overall financial health beyond just this single metric.
How does XJ International Holdings Co's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, XJ International Holdings Co ranks #65 out of 255 companies for Operating Margin %. This puts XJ International Holdings Co in the upper half of its industry. The industry median Operating Margin % is 9.59. XJ International Holdings Co's value of 27.04% is 182% above this benchmark. Historically, XJ International Holdings Co's own Operating Margin % has ranged from 18.63 to 35.12 over the past decade. While the company's 10-year median is 24.34 vs. the industry median of 9.59, XJ International Holdings 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 Education company?
The median Operating Margin % among Education companies is 9.59, based on 255 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. XJ International Holdings Co's current Operating Margin % of 27.04% is 182% 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 XJ International Holdings Co and its competitors. For the Education industry, the median Operating Margin % is 9.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. XJ International Holdings Co's current Operating Margin % is 27.04%, which is 11% above median its own 10-year median of 24.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is XJ International Holdings Co stock overvalued right now?
XJ International Holdings Co (FRA:HE1) has a current Operating Margin % of 27.04%. The stock's GF Value™ is €0.03, compared to a current price of €0.02 — trading 43.3% below its estimated fair value. The current Operating Margin % is 27.04%, which is 11% above median its 10-year median of 24.34 and 182% above the Education industry median of 9.59. XJ International Holdings Co's overall GF Score™ is 54/100 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 XJ International Holdings Co (FRA:HE1), the current Operating Margin % is 27.04% as of Feb. 2026. 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 XJ International Holdings Co (FRA:HE1) Overvalued in 2026?
Based on GuruFocus' analysis, XJ International Holdings Co stock appears to be undervalued.
The current stock price of €0.02 is trading 43.3% below its estimated GF Value™ of €0.03.
Key valuation signals for FRA:HE1:
Operating Margin %: 27.04% (11% above median its 10-year median of 24.34)
GF Value™: €0.03 vs. price of €0.02 (43.3% below fair value)
Industry Position: 182% above the Education median (#65 of 255)
No single metric tells the full story. See the FRA:HE1 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
XJ International Holdings Co Ltd formerly Hope Education Group Co Ltd is an investment holding company engaged in providing educational services. The company operates higher educational schools which include universities and junior colleges. Some of its colleges are Southwest Jiaotong University Hope Colleges, Business College of Guizhou University of Finance and Economics, Sichuan TOP IT Vocational Institute, and One Technical College among others. Its operating segments are the Domestic education which is the key revenue generating segment, global education segment and others. The company generates its revenue from tuition fees, boarding fees, sales of books and daily necessities, and others. Geographically company also operates in Malaysia, Thailand and Hungary.
54GF Score
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