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Northeast Electrical Development Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Northeast Electrical Development Co's Operating Margin % or its related term are showing as below:
HKSE:00042'
s Operating Margin % Range Over the Past 10 Years
Min: -122.15 Med: -19.5 Max: -4.57
Current: -4.57
HKSE:00042's Operating Margin % is ranked worse than 79.57% of 842
companies
in the Travel & Leisure industry
Industry Median: 8.285
vs HKSE:00042: -4.57
Northeast Electrical Development Co (HKSE:00042) 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.
Northeast Electrical Development Co Operating Margin % Related Terms
Northeast Electrical Development 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.
Northeast Electrical Development Co Operating Margin % Chart
HKSE:00042 vs MAR, HLT, H: Operating Margin % Comparison
For the Lodging subindustry, Northeast Electrical Development 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.
Northeast Electrical Development Co Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Northeast Electrical Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Northeast Electrical Development Co's Operating Margin % falls into.
Northeast Electrical Development 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.
Northeast Electrical Development Co (HKSE:00042) has a Operating Margin % of -3.21% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Northeast Electrical Development Co and its competitors. According to the industry distribution chart, Northeast Electrical Development Co ranks #670 out of 842 companies in the Travel & Leisure industry, placing it in the top 79.6%.
Is Northeast Electrical Development Co's Operating Margin % too high?
Northeast Electrical Development Co's current Operating Margin % is -3.21%. Based on the distribution chart, Northeast Electrical Development Co ranks #670 out of 842 companies in the Travel & Leisure industry, which is in the bottom quartile relative to peers. Overall, Northeast Electrical Development Co has a GF Score™ of 26/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Northeast Electrical Development Co's Operating Margin % compare to MAR and HLT?
According to the Travel & Leisure industry distribution chart, Northeast Electrical Development Co ranks #670 out of 842 companies for Operating Margin %. This places Northeast Electrical Development Co in the lower half of its industry. The industry median Operating Margin % is 8.29. 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 Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.29, based on 842 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. 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 Northeast Electrical Development Co and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Northeast Electrical Development Co's current Operating Margin % is -3.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Northeast Electrical Development Co stock overvalued right now?
Based on GuruFocus' analysis, Northeast Electrical Development Co (HKSE:00042) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.29, compared to a current price of HK$0.23 — trading 19.7% below its estimated fair value. The current Operating Margin % is -3.21%. Northeast Electrical Development Co's overall GF Score™ is 26/100 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 Northeast Electrical Development Co (HKSE:00042), the current Operating Margin % is -3.21% 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 Northeast Electrical Development Co (HKSE:00042) Overvalued in 2026?
Based on GuruFocus' analysis, Northeast Electrical Development Co stock appears to be undervalued.
The current stock price of HK$0.23 is trading 19.7% below its estimated GF Value™ of HK$0.29.
GuruFocus considers Northeast Electrical Development Co to be Modestly Undervalued.
Key valuation signals for HKSE:00042:
Operating Margin %: -3.21%
GF Value™: HK$0.29 vs. price of HK$0.23 (19.7% below fair value)
No single metric tells the full story. See the HKSE:00042 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Northeast Electrical Development Co Ltd is principally engaged in the production and sale of power transmission equipment and related accessories; hotel operations and provision of related catering services; and investment holding. The company generates the majority of its revenue from the production and sale of power transmission equipment and related accessories. Geographically, the Group's operations are principally located in the PRC regions.
26GF Score
Get the complete analysis for HKSE:00042
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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