Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
China Railway SignalmmunicationFRA:RS3 -0.57%56 Operating Margin % is 13.66% as of Dec. 2025, which is 13% above its 10-year median of 12.08. GuruFocus rates FRA:RS3 with a GF Score™ of 56/100 and a GF Value™ of €0.38 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,003 Transportation companies, China Railway Signalmmunication ranks better than 67.9% on this metric.
China Railway Signalmmunication (FRA:RS3) 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.
China Railway Signalmmunication Operating Margin % Related Terms
China Railway Signalmmunication 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.
China Railway Signalmmunication Operating Margin % Chart
FRA:RS3 vs UNP, CSX, NSC: Operating Margin % Comparison
For the Railroads subindustry, China Railway Signalmmunication'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.
China Railway Signalmmunication Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, China Railway Signalmmunication's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Railway Signalmmunication's Operating Margin % falls into.
China Railway Signalmmunication 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.
China Railway Signalmmunication (FRA:RS3) has a Operating Margin % of 13.66% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Railway Signalmmunication and its competitors. This is 13% above median its historical median of 12.08. Over the past decade, China Railway Signalmmunication's Operating Margin % has ranged from 10.55 to 13.90. According to the industry distribution chart, China Railway Signalmmunication ranks #322 out of 1003 companies in the Transportation industry, placing it in the top 32.1%.
Is China Railway Signalmmunication's Operating Margin % too high?
China Railway Signalmmunication's current Operating Margin % of 13.66% is 13% above median its 10-year median of 12.08. Over the past 10 years, this metric has ranged from a low of 10.55 to a high of 13.90. The Transportation industry median Operating Margin % is 7.26. China Railway Signalmmunication's value of 13.66% is 88.2% above this industry median. Based on the distribution chart, China Railway Signalmmunication ranks #322 out of 1003 companies in the Transportation industry, which is above the industry midpoint. Overall, China Railway Signalmmunication has a GF Score™ of 56/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Railway Signalmmunication's Operating Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, China Railway Signalmmunication ranks #322 out of 1003 companies for Operating Margin %. This puts China Railway Signalmmunication in the upper half of its industry. The industry median Operating Margin % is 7.26. China Railway Signalmmunication's value of 13.66% is 88.2% above this benchmark. Historically, China Railway Signalmmunication's own Operating Margin % has ranged from 10.55 to 13.90 over the past decade. While the company's 10-year median is 12.08 vs. the industry median of 7.26, China Railway Signalmmunication 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.26, based on 1,003 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. China Railway Signalmmunication's current Operating Margin % of 13.66% is 88.2% 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 China Railway Signalmmunication and its competitors. For the Transportation industry, the median Operating Margin % is 7.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Railway Signalmmunication's current Operating Margin % is 13.66%, which is 13% above median its own 10-year median of 12.08. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Railway Signalmmunication stock overvalued right now?
Based on GuruFocus' analysis, China Railway Signalmmunication (FRA:RS3) is currently considered Fairly Valued. The stock's GF Value™ is €0.38, compared to a current price of €0.35 — trading 8.9% below its estimated fair value. The current Operating Margin % is 13.66%, which is 13% above median its 10-year median of 12.08 and 88.2% above the Transportation industry median of 7.26. China Railway Signalmmunication's overall GF Score™ is 56/100 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 China Railway Signalmmunication (FRA:RS3), the current Operating Margin % is 13.66% 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 China Railway Signalmmunication (FRA:RS3) Overvalued in 2026?
Based on GuruFocus' analysis, China Railway Signalmmunication stock appears to be undervalued.
The current stock price of €0.35 is trading 8.9% below its estimated GF Value™ of €0.38.
GuruFocus considers China Railway Signalmmunication to be Fairly Valued.
Key valuation signals for FRA:RS3:
Operating Margin %: 13.66% (13% above median its 10-year median of 12.08)
GF Value™: €0.38 vs. price of €0.35 (8.9% below fair value)
Industry Position: 88.2% above the Transportation median (#322 of 1003)
No single metric tells the full story. See the FRA:RS3 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Railway Signalmmunication Business Description
China Railway Signal & Communication Corp Ltd provides products and services on the entire industrial chain of rail transit control systems. The company's operating segments are the Rail transportation control system segment, which provides specialized three-in-one services of design and integration, equipment manufacturing, and system implementation services for rail transportation control systems; the General engineering contracting segment engages in the provision of services relating to municipal and other construction projects; and other segments mainly engage in trading. The firm generates a majority of its revenue from the Rail transportation control system segment.
56GF Score
Get the complete analysis for FRA:RS3
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:RS3 has been successfully added to your 
