Kwoon Chung Bus HoldingsHKSE:00306 -1.42%71 Operating Margin % is 5.70% as of Sep. 2025, which is 26% below its 10-year median of 7.66. GuruFocus rates HKSE:00306 with a GF Score™ of 71/100 and a GF Value™ of HK$2.99 (Fairly Valued). The stock has 4 warning signs investors should review. Among 999 Transportation companies, Kwoon Chung Bus Holdings ranks better than 66.97% on this metric.
The historical rank and industry rank for Kwoon Chung Bus Holdings's Operating Margin % or its related term are showing as below:
HKSE:00306'
s Operating Margin % Range Over the Past 10 Years
Min: -8.59 Med: 7.66 Max: 16.37
Current: 12.75
HKSE:00306's Operating Margin % is ranked better than 66.97% of 999
companies
in the Transportation industry
Industry Median: 7.29
vs HKSE:00306: 12.75
Kwoon Chung Bus Holdings (HKSE:00306) 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.
Kwoon Chung Bus Holdings Operating Margin % Related Terms
Kwoon Chung Bus Holdings 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:00306 vs UNP, CSX, NSC: Operating Margin % Comparison
For the Railroads subindustry, Kwoon Chung Bus Holdings'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.
Kwoon Chung Bus Holdings Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Kwoon Chung Bus Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kwoon Chung Bus Holdings's Operating Margin % falls into.
Kwoon Chung Bus Holdings 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.
Kwoon Chung Bus Holdings'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.
Kwoon Chung Bus Holdings (HKSE:00306) has a Operating Margin % of 5.70% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kwoon Chung Bus Holdings and its competitors. This is 26% below median its historical median of 7.66. According to the industry distribution chart, Kwoon Chung Bus Holdings ranks #330 out of 999 companies in the Transportation industry, placing it in the top 33%.
Is Kwoon Chung Bus Holdings' Operating Margin % too high?
Kwoon Chung Bus Holdings' current Operating Margin % of 5.70% is 26% below median its 10-year median of 7.66. The Transportation industry median Operating Margin % is 7.29. Kwoon Chung Bus Holdings' value of 5.70% is 21.8% below this industry median. Based on the distribution chart, Kwoon Chung Bus Holdings ranks #330 out of 999 companies in the Transportation industry, which is above the industry midpoint. Overall, Kwoon Chung Bus Holdings has a GF Score™ of 71/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kwoon Chung Bus Holdings' Operating Margin % compare to UNP and CSX?
According to the Transportation industry distribution chart, Kwoon Chung Bus Holdings ranks #330 out of 999 companies for Operating Margin %. This puts Kwoon Chung Bus Holdings in the upper half of its industry. The industry median Operating Margin % is 7.29. Kwoon Chung Bus Holdings' value of 5.70% is 21.8% below this benchmark. While the company's 10-year median is 7.66 vs. the industry median of 7.29, Kwoon Chung Bus Holdings 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.29, based on 999 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. Kwoon Chung Bus Holdings's current Operating Margin % of 5.70% is 21.8% 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 Kwoon Chung Bus Holdings and its competitors. For the Transportation industry, the median Operating Margin % is 7.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kwoon Chung Bus Holdings's current Operating Margin % is 5.70%, which is 26% below median its own 10-year median of 7.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kwoon Chung Bus Holdings stock overvalued right now?
Based on GuruFocus' analysis, Kwoon Chung Bus Holdings (HKSE:00306) is currently considered Fairly Valued. The stock's GF Value™ is HK$2.99, compared to a current price of HK$2.77 — trading 7.4% below its estimated fair value. The current Operating Margin % is 5.70%, which is 26% below median its 10-year median of 7.66 and 21.8% below the Transportation industry median of 7.29. Kwoon Chung Bus Holdings' overall GF Score™ is 71/100 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 Kwoon Chung Bus Holdings (HKSE:00306), the current Operating Margin % is 5.70% 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 Kwoon Chung Bus Holdings (HKSE:00306) Overvalued in 2026?
Based on GuruFocus' analysis, Kwoon Chung Bus Holdings stock appears to be undervalued.
The current stock price of HK$2.77 is trading 7.4% below its estimated GF Value™ of HK$2.99.
GuruFocus considers Kwoon Chung Bus Holdings to be Fairly Valued.
Key valuation signals for HKSE:00306:
Operating Margin %: 5.70% (26% below median its 10-year median of 7.66)
GF Value™: HK$2.99 vs. price of HK$2.77 (7.4% below fair value)
Industry Position: 21.8% below the Transportation median (#330 of 999)
No single metric tells the full story. See the HKSE:00306 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kwoon Chung Bus Holdings Ltd is engaged in transportation businesses. The company's operating segment includes a Non-franchised Bus; Limousine; Franchised Bus and PLB; Mainland China Business and Others. It generates maximum revenue from the Non-franchised bus segment. The Non-franchised bus segment includes the provision of non-franchised bus hire services in Hong Kong, cross-boundary passenger transportation services (other than limousine hire services) between Hong Kong and Mainland China, and other related services. Geographically, it operates in Hong Kong and Macau; and Chinese Mainland.
71GF Score
Get the complete analysis for HKSE:00306
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:00306 has been successfully added to your 
