China Automotive SystemsHAM:2IW 78 Operating Margin % is 10.47% as of Dec. 2025, which is 244% above its 10-year median of 3.04. GuruFocus rates HAM:2IW with a GF Score™ of 78/100 and a GF Value™ of €4.76. The stock has 3 warning signs investors should review. Among 1,325 Vehicles & Parts companies, China Automotive Systems ranks better than 68.15% on this metric.
China Automotive Systems (HAM:2IW) 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 Automotive Systems Operating Margin % Related Terms
China Automotive Systems 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.
HAM:2IW vs SCTH, INVZ, CVGI: Operating Margin % Comparison
For the Auto Parts subindustry, China Automotive Systems'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 Automotive Systems Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, China Automotive Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Automotive Systems's Operating Margin % falls into.
China Automotive Systems 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.
China Automotive Systems'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.
China Automotive Systems (HAM:2IW) has a Operating Margin % of 10.47% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Automotive Systems and its competitors. This is 244% above median its historical median of 3.04. According to the industry distribution chart, China Automotive Systems ranks #422 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 31.8%.
Is China Automotive Systems' Operating Margin % too high?
China Automotive Systems' current Operating Margin % of 10.47% is 244% above median its 10-year median of 3.04. The Vehicles & Parts industry median Operating Margin % is 4.86. China Automotive Systems' value of 10.47% is 115.4% above this industry median. Based on the distribution chart, China Automotive Systems ranks #422 out of 1325 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, China Automotive Systems has a GF Score™ of 78/100, reflecting its overall financial health beyond just this single metric.
How does China Automotive Systems' Operating Margin % compare to SCTH and INVZ?
According to the Vehicles & Parts industry distribution chart, China Automotive Systems ranks #422 out of 1325 companies for Operating Margin %. This puts China Automotive Systems in the upper half of its industry. The industry median Operating Margin % is 4.86. China Automotive Systems' value of 10.47% is 115.4% above this benchmark. While the company's 10-year median is 3.04 vs. the industry median of 4.86, China Automotive Systems 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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 Automotive Systems's current Operating Margin % of 10.47% is 115.4% 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 China Automotive Systems and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Automotive Systems's current Operating Margin % is 10.47%, which is 244% above median its own 10-year median of 3.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Automotive Systems stock overvalued right now?
China Automotive Systems (HAM:2IW) has a current Operating Margin % of 10.47%. The stock's GF Value™ is €4.76, compared to a current price of €3.98 — trading 16.5% below its estimated fair value. The current Operating Margin % is 10.47%, which is 244% above median its 10-year median of 3.04 and 115.4% above the Vehicles & Parts industry median of 4.86. China Automotive Systems' overall GF Score™ is 78/100 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 Automotive Systems (HAM:2IW), the current Operating Margin % is 10.47% 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 Automotive Systems (HAM:2IW) Overvalued in 2026?
Based on GuruFocus' analysis, China Automotive Systems stock appears to be undervalued.
The current stock price of €3.98 is trading 16.5% below its estimated GF Value™ of €4.76.
Key valuation signals for HAM:2IW:
Operating Margin %: 10.47% (244% above median its 10-year median of 3.04)
GF Value™: €4.76 vs. price of €3.98 (16.5% below fair value)
Industry Position: 115.4% above the Vehicles & Parts median (#422 of 1325)
No single metric tells the full story. See the HAM:2IW stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Automotive Systems Inc is a holding company. The firm, through its subsidiary, is a supplier of power steering systems and components to China's automotive industry. Its product offering encompasses a full range of auto parts incorporated into steering systems for both passenger automobiles and commercial vehicles. The company offers four separate series of power steering models, including rack and pinion power steering, integral power steering, electronic power steering, steering columns, steering oil pumps, and steering hoses. Geographically, it derives a majority of its revenue from China.
78GF Score
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