Safety Godown CoHKSE:00237 78 Operating Margin % is 76.41% as of Sep. 2025, which is 3% above its 10-year median of 74.06. GuruFocus rates HKSE:00237 with a GF Score™ of 78/100 and a GF Value™ of HK$2.12 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,744 Real Estate companies, Safety Godown Co ranks better than 95.76% on this metric.
Safety Godown Co (HKSE:00237) 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.
Safety Godown Co Operating Margin % Related Terms
Safety Godown Co Operating Margin % Historical Data
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The historical data trend for Safety Godown Co's Operating Margin % can be seen below:
* 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:00237 vs CBRE, BEKE, JLL: Operating Margin % Comparison
For the Real Estate Services subindustry, Safety Godown 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.
Safety Godown Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Safety Godown Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Safety Godown Co'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.
Safety Godown Co's Operating Margin % for the fiscal year that ended in Mar. 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.
Safety Godown Co (HKSE:00237) has a Operating Margin % of 76.41% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Safety Godown Co and its competitors. This is near median its historical median of 74.06. Over the past decade, Safety Godown Co's Operating Margin % has ranged from 32.57 to 83.74. According to the industry distribution chart, Safety Godown Co ranks #74 out of 1744 companies in the Real Estate industry, placing it in the top 4.2%.
Is Safety Godown Co's Operating Margin % too high?
Safety Godown Co's current Operating Margin % of 76.41% is near median its 10-year median of 74.06. Over the past 10 years, this metric has ranged from a low of 32.57 to a high of 83.74. The Real Estate industry median Operating Margin % is 13.19. Safety Godown Co's value of 76.41% is 479.3% above this industry median. Based on the distribution chart, Safety Godown Co ranks #74 out of 1744 companies in the Real Estate industry, which is in the top quartile — a strong position relative to peers. Overall, Safety Godown Co has a GF Score™ of 78/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Safety Godown Co's Operating Margin % compare to CBRE and BEKE?
According to the Real Estate industry distribution chart, Safety Godown Co ranks #74 out of 1744 companies for Operating Margin %. This places Safety Godown Co in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.19. Safety Godown Co's value of 76.41% is 479.3% above this benchmark. Historically, Safety Godown Co's own Operating Margin % has ranged from 32.57 to 83.74 over the past decade. While the company's 10-year median is 74.06 vs. the industry median of 13.19, Safety Godown 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 13.19, based on 1,744 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. Safety Godown Co's current Operating Margin % of 76.41% is 479.3% 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 Safety Godown Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Safety Godown Co's current Operating Margin % is 76.41%, which is near median its own 10-year median of 74.06. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Safety Godown Co stock overvalued right now?
Based on GuruFocus' analysis, Safety Godown Co (HKSE:00237) is currently considered Fairly Valued. The stock's GF Value™ is HK$2.12, compared to a current price of HK$2.10 — trading 0.9% below its estimated fair value. The current Operating Margin % is 76.41%, which is near median its 10-year median of 74.06 and 479.3% above the Real Estate industry median of 13.19. Safety Godown Co's 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 Safety Godown Co (HKSE:00237), the current Operating Margin % is 76.41% as of Sep. 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 Safety Godown Co (HKSE:00237) Overvalued in 2026?
Based on GuruFocus' analysis, Safety Godown Co stock appears to be undervalued.
The current stock price of HK$2.10 is trading 0.9% below its estimated GF Value™ of HK$2.12.
GuruFocus considers Safety Godown Co to be Fairly Valued.
Key valuation signals for HKSE:00237:
Operating Margin %: 76.41% (near median its 10-year median of 74.06)
GF Value™: HK$2.12 vs. price of HK$2.10 (0.9% below fair value)
Industry Position: 479.3% above the Real Estate median (#74 of 1744)
No single metric tells the full story. See the HKSE:00237 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Safety Godown Co Ltd is an investment holding company. The company's operating segment includes Godown operations; Property investment and Treasury investment. It generates maximum revenue from the Property investment segment. The property Investment segment engages in the leasing of investment properties. Godown Operations consist of the operation of godowns. Treasury Investment segment which involves securities trading and investment. Geographically, it derives revenue from Hong Kong.
78GF Score
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