Transport International Holdings (FRA:KWO) 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.
Transport International Holdings Operating Margin % Related Terms
Transport International 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.
Transport International Holdings Operating Margin % Chart
FRA:KWO vs UNP, CSX, NSC: Operating Margin % Comparison
For the Railroads subindustry, Transport International 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.
Transport International Holdings Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Transport International Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Transport International Holdings's Operating Margin % falls into.
Transport International Holdings 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.
Transport International Holdings (FRA:KWO) has a Operating Margin % of 4.63% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Transport International Holdings and its competitors. This is 24% above median its historical median of 3.74. According to the industry distribution chart, Transport International Holdings ranks #579 out of 1007 companies in the Transportation industry, placing it in the top 57.5%.
Is Transport International Holdings' Operating Margin % too high?
Transport International Holdings' current Operating Margin % of 4.63% is 24% above median its 10-year median of 3.74. The Transportation industry median Operating Margin % is 7.36. Transport International Holdings' value of 4.63% is 37.1% below this industry median. Based on the distribution chart, Transport International Holdings ranks #579 out of 1007 companies in the Transportation industry, which is below the industry midpoint. Overall, Transport International Holdings has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Transport International Holdings' Operating Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Transport International Holdings ranks #579 out of 1007 companies for Operating Margin %. This places Transport International Holdings in the lower half of its industry. The industry median Operating Margin % is 7.36. Transport International Holdings' value of 4.63% is 37.1% below this benchmark. While the company's 10-year median is 3.74 vs. the industry median of 7.36, Transport International 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. Transport International Holdings's current Operating Margin % of 4.63% is 37.1% 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 Transport International Holdings and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Transport International Holdings's current Operating Margin % is 4.63%, which is 24% above median its own 10-year median of 3.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Transport International Holdings stock overvalued right now?
Transport International Holdings (FRA:KWO) has a current Operating Margin % of 4.63%. The stock's GF Value™ is €1.00, compared to a current price of €0.98 — trading 2% below its estimated fair value. The current Operating Margin % is 4.63%, which is 24% above median its 10-year median of 3.74 and 37.1% below the Transportation industry median of 7.36. Transport International Holdings' overall GF Score™ is 68/100 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 Transport International Holdings (FRA:KWO), the current Operating Margin % is 4.63% 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 Transport International Holdings (FRA:KWO) Overvalued in 2026?
Based on GuruFocus' analysis, Transport International Holdings stock appears to be undervalued.
The current stock price of €0.98 is trading 2% below its estimated GF Value™ of €1.00.
Key valuation signals for FRA:KWO:
Operating Margin %: 4.63% (24% above median its 10-year median of 3.74)
GF Value™: €1.00 vs. price of €0.98 (2% below fair value)
Industry Position: 37.1% below the Transportation median (#579 of 1007)
No single metric tells the full story. See the FRA:KWO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Transport International Holdings Business Description
Transport International Holdings Ltd is a public transportation company domiciled in the People's Republic of China. Its main segments include franchised bus operation and property holdings and development. The franchised bus operation segment, which generates the vast majority of revenue, provides franchised public bus services in Hong Kong. The property holdings and development segment develops and leases nonresidential properties for use as investment properties.
68GF Score
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