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Shenzhen Xunce Technology CoFRA:LV3 20 Operating Margin % is 6.06% as of Dec. 2025. GuruFocus rates FRA:LV3 with a GF Score™ of 20/100. The stock has 3 warning signs investors should review. Among 2,825 Software companies, Shenzhen Xunce Technology Co ranks worse than 63.33% on this metric.
Shenzhen Xunce Technology Co (FRA:LV3) 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.
Shenzhen Xunce Technology Co Operating Margin % Related Terms
Shenzhen Xunce Technology 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.
Shenzhen Xunce Technology Co Operating Margin % Chart
FRA:LV3 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, Shenzhen Xunce Technology 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.
Shenzhen Xunce Technology Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Shenzhen Xunce Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shenzhen Xunce Technology Co's Operating Margin % falls into.
Shenzhen Xunce Technology 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.
Shenzhen Xunce Technology Co (FRA:LV3) has a Operating Margin % of 6.06% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Shenzhen Xunce Technology Co and its competitors. According to the industry distribution chart, Shenzhen Xunce Technology Co ranks #1789 out of 2825 companies in the Software industry, placing it in the top 63.3%.
Is Shenzhen Xunce Technology Co's Operating Margin % too high?
Shenzhen Xunce Technology Co's current Operating Margin % is 6.06%. The Software industry median Operating Margin % is 3.95. Shenzhen Xunce Technology Co's value of 6.06% is 53.4% above this industry median. Based on the distribution chart, Shenzhen Xunce Technology Co ranks #1789 out of 2825 companies in the Software industry, which is below the industry midpoint. Overall, Shenzhen Xunce Technology Co has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Xunce Technology Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, Shenzhen Xunce Technology Co ranks #1789 out of 2825 companies for Operating Margin %. This places Shenzhen Xunce Technology Co in the lower half of its industry. The industry median Operating Margin % is 3.95. Shenzhen Xunce Technology Co's value of 6.06% is 53.4% above this benchmark. 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 Software company?
The median Operating Margin % among Software companies is 3.95, based on 2,825 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. Shenzhen Xunce Technology Co's current Operating Margin % of 6.06% is 53.4% 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 Shenzhen Xunce Technology Co and its competitors. For the Software industry, the median Operating Margin % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Xunce Technology Co's current Operating Margin % is 6.06%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Xunce Technology Co stock overvalued right now?
Shenzhen Xunce Technology Co (FRA:LV3) has a current Operating Margin % of 6.06%. The current Operating Margin % is 6.06% and 53.4% above the Software industry median of 3.95. Shenzhen Xunce Technology Co's overall GF Score™ is 20/100 with 3 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 Shenzhen Xunce Technology Co (FRA:LV3), the current Operating Margin % is 6.06% 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.
Shenzhen Xunce Technology Co Ltd is a real-time data infrastructure and analytics solutions provider in China. The Company, with its core AI Data Agent, continuously strengthened its millisecond-level real-time data processing capabilities and built a full-chain technical system covering data acquisition, cleansing, standardisation, real-time computation, and large model fine-tuning. The Group provides solutions encompassing data infrastructure and data analytics to customers across various industries, achieving seamless deployment within clients' self-managed clouds and on-premises systems. The Group is organized into one single business unit that is the provision of transactionbased specialist technology products and subscription-based specialist technology products.
20GF Score
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