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Cosmos Machinery EnterprisesHKSE:00118 43 Operating Margin % is 3.81% as of Dec. 2025, which is 80% above its 10-year median of 2.12. GuruFocus rates HKSE:00118 with a GF Score™ of 43/100 and a GF Value™ of HK$0.24 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 531 Conglomerates companies, Cosmos Machinery Enterprises ranks worse than 70.81% on this metric.
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.
Cosmos Machinery Enterprises Operating Margin % Related Terms
Cosmos Machinery Enterprises 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.
HKSE:00118 vs MMM, HON: Operating Margin % Comparison
For the Conglomerates subindustry, Cosmos Machinery Enterprises'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.
Cosmos Machinery Enterprises Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Cosmos Machinery Enterprises's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cosmos Machinery Enterprises's Operating Margin % falls into.
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.
Cosmos Machinery Enterprises (HKSE:00118) has a Operating Margin % of 3.81% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Cosmos Machinery Enterprises and its competitors. This is 80% above median its historical median of 2.12. According to the industry distribution chart, Cosmos Machinery Enterprises ranks #376 out of 531 companies in the Conglomerates industry, placing it in the top 70.8%.
Is Cosmos Machinery Enterprises' Operating Margin % too high?
Cosmos Machinery Enterprises' current Operating Margin % of 3.81% is 80% above median its 10-year median of 2.12. The Conglomerates industry median Operating Margin % is 6.09. Cosmos Machinery Enterprises' value of 3.81% is 37.4% below this industry median. Based on the distribution chart, Cosmos Machinery Enterprises ranks #376 out of 531 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Cosmos Machinery Enterprises has a GF Score™ of 43/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cosmos Machinery Enterprises' Operating Margin % compare to MMM and HON?
According to the Conglomerates industry distribution chart, Cosmos Machinery Enterprises ranks #376 out of 531 companies for Operating Margin %. This places Cosmos Machinery Enterprises in the lower half of its industry. The industry median Operating Margin % is 6.09. Cosmos Machinery Enterprises' value of 3.81% is 37.4% below this benchmark. While the company's 10-year median is 2.12 vs. the industry median of 6.09, Cosmos Machinery Enterprises has consistently been below 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 6.09, based on 531 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. Cosmos Machinery Enterprises's current Operating Margin % of 3.81% is 37.4% below 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 Cosmos Machinery Enterprises and its competitors. For the Conglomerates industry, the median Operating Margin % is 6.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cosmos Machinery Enterprises's current Operating Margin % is 3.81%, which is 80% above median its own 10-year median of 2.12. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cosmos Machinery Enterprises stock overvalued right now?
Based on GuruFocus' analysis, Cosmos Machinery Enterprises (HKSE:00118) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.20 — trading 17.1% below its estimated fair value. The current Operating Margin % is 3.81%, which is 80% above median its 10-year median of 2.12 and 37.4% below the Conglomerates industry median of 6.09. Cosmos Machinery Enterprises' overall GF Score™ is 43/100 with 4 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 Cosmos Machinery Enterprises (HKSE:00118), the current Operating Margin % is 3.81% 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 Cosmos Machinery Enterprises (HKSE:00118) Overvalued in 2026?
Based on GuruFocus' analysis, Cosmos Machinery Enterprises stock appears to be undervalued.
The current stock price of HK$0.20 is trading 17.1% below its estimated GF Value™ of HK$0.24.
GuruFocus considers Cosmos Machinery Enterprises to be Modestly Undervalued.
Key valuation signals for HKSE:00118:
Operating Margin %: 3.81% (80% above median its 10-year median of 2.12)
GF Value™: HK$0.24 vs. price of HK$0.20 (17.1% below fair value)
Industry Position: 37.4% below the Conglomerates median (#376 of 531)
No single metric tells the full story. See the HKSE:00118 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cosmos Machinery Enterprises Ltd is an investment holding company. Its segments include Trading of Industrial Consumables; Processing and Manufacturing of Plastic Products; Manufacturing of Machinery; and Machinery Leasing. Majority of the revenue is derived from the Manufacturing of machinery segment. Geographically, group's operations are located in Hong Kong, Mainland China, other Asia-Pacific countries, North America and Europe.
43GF Score
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