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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.
Ximei Resources Holding Operating Margin % Related Terms
Ximei Resources Holding Operating Margin % Historical Data
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The historical data trend for Ximei Resources Holding'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:L23 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Ximei Resources Holding'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.
Ximei Resources Holding Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ximei Resources Holding's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ximei Resources Holding'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.
Ximei Resources Holding'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.
Ximei Resources Holding (FRA:L23) has a Operating Margin % of 8.48% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Ximei Resources Holding and its competitors. This is 42% below median its historical median of 14.74. Over the past decade, Ximei Resources Holding's Operating Margin % has ranged from 10.58 to 20.81. According to the industry distribution chart, Ximei Resources Holding ranks #488 out of 1583 companies in the Chemicals industry, placing it in the top 30.8%.
Is Ximei Resources Holding's Operating Margin % too high?
Ximei Resources Holding's current Operating Margin % of 8.48% is 42% below median its 10-year median of 14.74. Over the past 10 years, this metric has ranged from a low of 10.58 to a high of 20.81. The Chemicals industry median Operating Margin % is 6.62. Ximei Resources Holding's value of 8.48% is 28.1% above this industry median. Based on the distribution chart, Ximei Resources Holding ranks #488 out of 1583 companies in the Chemicals industry, which is above the industry midpoint. Overall, Ximei Resources Holding has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Ximei Resources Holding's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Ximei Resources Holding ranks #488 out of 1583 companies for Operating Margin %. This puts Ximei Resources Holding in the upper half of its industry. The industry median Operating Margin % is 6.62. Ximei Resources Holding's value of 8.48% is 28.1% above this benchmark. Historically, Ximei Resources Holding's own Operating Margin % has ranged from 10.58 to 20.81 over the past decade. While the company's 10-year median is 14.74 vs. the industry median of 6.62, Ximei Resources Holding 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 a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.62, based on 1,583 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. Ximei Resources Holding's current Operating Margin % of 8.48% is 28.1% 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 Ximei Resources Holding and its competitors. For the Chemicals industry, the median Operating Margin % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ximei Resources Holding's current Operating Margin % is 8.48%, which is 42% below median its own 10-year median of 14.74. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ximei Resources Holding stock overvalued right now?
Ximei Resources Holding (FRA:L23) has a current Operating Margin % of 8.48%. The stock's GF Value™ is €0.70, compared to a current price of €1.51 — trading 115.7% above its estimated fair value. The current Operating Margin % is 8.48%, which is 42% below median its 10-year median of 14.74 and 28.1% above the Chemicals industry median of 6.62. Ximei Resources Holding's overall GF Score™ is 70/100 with 6 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 Ximei Resources Holding (FRA:L23), the current Operating Margin % is 8.48% 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 Ximei Resources Holding (FRA:L23) Overvalued in 2026?
Based on GuruFocus' analysis, Ximei Resources Holding stock appears to be overvalued.
The current stock price of €1.51 is trading 115.7% above its estimated GF Value™ of €0.70.
Key valuation signals for FRA:L23:
Operating Margin %: 8.48% (42% below median its 10-year median of 14.74)
GF Value™: €0.70 vs. price of €1.51 (115.7% above fair value)
Industry Position: 28.1% above the Chemicals median (#488 of 1583)
No single metric tells the full story. See the FRA:L23 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ximei Resources Holding Ltd produces tantalum and niobium-based metallurgical products in China. Tantalum and niobium-based metallurgical products are essential in the downstream manufacture of many products used in high-tech industries, such as special alloys, chemicals, automobiles, Oil and gas pipelines, Sputtering targets, capacitors, and hard alloys. Its principal products are tantalum pentoxide and niobium pentoxide. It also produces and sells potassium heptafluorotantalate. The company sells processed products such as tantalum bars, tantalum carbide, and niobium bars to process the pentoxide products and potassium heptafluorotantalate it produces or purchases from third-party metallurgy companies.
70GF Score
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