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Lvgem (China) Real Estate Investment Co (HKSE:00095) 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.
Lvgem (China) Real Estate Investment Co Operating Margin % Related Terms
Lvgem (China) Real Estate Investment 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.
Lvgem (China) Real Estate Investment Co Operating Margin % Chart
Lvgem (China) Real Estate Investment Co Annual Data
Lvgem (China) Real Estate Investment Co Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, Lvgem (China) Real Estate Investment 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.
Lvgem (China) Real Estate Investment Co Operating Margin % vs Real Estate Industry
Lvgem (China) Real Estate Investment 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.
Lvgem (China) Real Estate Investment Co (HKSE:00095) has a Operating Margin % of 28.80% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lvgem (China) Real Estate Investment Co and its competitors. This is 20% below median its historical median of 35.88. Over the past decade, Lvgem (China) Real Estate Investment Co's Operating Margin % has ranged from 5.54 to 55.70. According to the industry distribution chart, Lvgem (China) Real Estate Investment Co ranks #669 out of 1743 companies in the Real Estate industry, placing it in the top 38.4%.
Is Lvgem (China) Real Estate Investment Co's Operating Margin % too high?
Lvgem (China) Real Estate Investment Co's current Operating Margin % of 28.80% is 20% below median its 10-year median of 35.88. Over the past 10 years, this metric has ranged from a low of 5.54 to a high of 55.70. The Real Estate industry median Operating Margin % is 12.82. Lvgem (China) Real Estate Investment Co's value of 28.80% is 124.6% above this industry median. Based on the distribution chart, Lvgem (China) Real Estate Investment Co ranks #669 out of 1743 companies in the Real Estate industry, which is above the industry midpoint. Overall, Lvgem (China) Real Estate Investment Co has a GF Score™ of 36/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lvgem (China) Real Estate Investment Co's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Lvgem (China) Real Estate Investment Co ranks #669 out of 1743 companies for Operating Margin %. This puts Lvgem (China) Real Estate Investment Co in the upper half of its industry. The industry median Operating Margin % is 12.82. Lvgem (China) Real Estate Investment Co's value of 28.80% is 124.6% above this benchmark. Historically, Lvgem (China) Real Estate Investment Co's own Operating Margin % has ranged from 5.54 to 55.70 over the past decade. While the company's 10-year median is 35.88 vs. the industry median of 12.82, Lvgem (China) Real Estate Investment Co 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 12.82, based on 1,743 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. Lvgem (China) Real Estate Investment Co's current Operating Margin % of 28.80% is 124.6% 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 Lvgem (China) Real Estate Investment Co and its competitors. For the Real Estate industry, the median Operating Margin % is 12.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lvgem (China) Real Estate Investment Co's current Operating Margin % is 28.80%, which is 20% below median its own 10-year median of 35.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lvgem (China) Real Estate Investment Co stock overvalued right now?
Based on GuruFocus' analysis, Lvgem (China) Real Estate Investment Co (HKSE:00095) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.10, compared to a current price of HK$0.19 — trading 90% above its estimated fair value. The current Operating Margin % is 28.80%, which is 20% below median its 10-year median of 35.88 and 124.6% above the Real Estate industry median of 12.82. Lvgem (China) Real Estate Investment Co's overall GF Score™ is 36/100 with 8 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 Lvgem (China) Real Estate Investment Co (HKSE:00095), the current Operating Margin % is 28.80% 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 Lvgem (China) Real Estate Investment Co (HKSE:00095) Overvalued in 2026?
Based on GuruFocus' analysis, Lvgem (China) Real Estate Investment Co stock appears to be overvalued.
The current stock price of HK$0.19 is trading 90% above its estimated GF Value™ of HK$0.10.
GuruFocus considers Lvgem (China) Real Estate Investment Co to be Significantly Overvalued.
Key valuation signals for HKSE:00095:
Operating Margin %: 28.80% (20% below median its 10-year median of 35.88)
GF Value™: HK$0.10 vs. price of HK$0.19 (90% above fair value)
Industry Position: 124.6% above the Real Estate median (#669 of 1743)
No single metric tells the full story. See the HKSE:00095 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lvgem (China) Real Estate Investment Co Ltd is a real estate developer and a commercial property operator. Its reportable segments are: Real estate development and sales, Commercial property investment and operations, and Comprehensive services. Maximum revenue is generated from the Real estate development and sales segment, which generates revenue from the sales of properties by actively participating in urban renewal residential, and commercial property projects in the Pearl River Delta region, especially in Shenzhen, China. The Commercial property investment and operations segment includes the lease of commercial properties, office premises, apartments, and car parks; and the Comprehensive services segment comprises hotel operation, property management, and other services.
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