FSE Lifestyle ServicesHKSE:00331 +0.59%74 Operating Margin % is 6.71% as of Dec. 2025, which is 1% below its 10-year median of 6.75. GuruFocus rates HKSE:00331 with a GF Score™ of 74/100 and a GF Value™ of HK$6.83 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,767 Construction companies, FSE Lifestyle Services ranks better than 53.03% 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.
FSE Lifestyle Services Operating Margin % Related Terms
FSE Lifestyle Services Operating Margin % Historical Data
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The historical data trend for FSE Lifestyle Services'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:00331 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, FSE Lifestyle Services'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.
FSE Lifestyle Services Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, FSE Lifestyle Services's Operating Margin % distribution charts can be found below:
* The bar in red indicates where FSE Lifestyle Services'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.
FSE Lifestyle Services's Operating Margin % for the fiscal year that ended in Jun. 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.
FSE Lifestyle Services (HKSE:00331) has a Operating Margin % of 6.71% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on FSE Lifestyle Services and its competitors. This is near median its historical median of 6.75. Over the past decade, FSE Lifestyle Services' Operating Margin % has ranged from 4.91 to 10.50. According to the industry distribution chart, FSE Lifestyle Services ranks #830 out of 1767 companies in the Construction industry, placing it in the top 47%.
Is FSE Lifestyle Services' Operating Margin % too high?
FSE Lifestyle Services' current Operating Margin % of 6.71% is near median its 10-year median of 6.75. Over the past 10 years, this metric has ranged from a low of 4.91 to a high of 10.50. The Construction industry median Operating Margin % is 5.89. FSE Lifestyle Services' value of 6.71% is 13.9% above this industry median. Based on the distribution chart, FSE Lifestyle Services ranks #830 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, FSE Lifestyle Services has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does FSE Lifestyle Services' Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, FSE Lifestyle Services ranks #830 out of 1767 companies for Operating Margin %. This puts FSE Lifestyle Services in the upper half of its industry. The industry median Operating Margin % is 5.89. FSE Lifestyle Services' value of 6.71% is 13.9% above this benchmark. Historically, FSE Lifestyle Services' own Operating Margin % has ranged from 4.91 to 10.50 over the past decade. While the company's 10-year median is 6.75 vs. the industry median of 5.89, FSE Lifestyle Services 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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. FSE Lifestyle Services's current Operating Margin % of 6.71% is 13.9% 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 FSE Lifestyle Services and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. FSE Lifestyle Services's current Operating Margin % is 6.71%, which is near median its own 10-year median of 6.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is FSE Lifestyle Services stock overvalued right now?
Based on GuruFocus' analysis, FSE Lifestyle Services (HKSE:00331) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$6.83, compared to a current price of HK$5.12 — trading 25% below its estimated fair value. The current Operating Margin % is 6.71%, which is near median its 10-year median of 6.75 and 13.9% above the Construction industry median of 5.89. FSE Lifestyle Services' overall GF Score™ is 74/100 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 FSE Lifestyle Services (HKSE:00331), the current Operating Margin % is 6.71% 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 FSE Lifestyle Services (HKSE:00331) Overvalued in 2026?
Based on GuruFocus' analysis, FSE Lifestyle Services stock appears to be undervalued.
The current stock price of HK$5.12 is trading 25% below its estimated GF Value™ of HK$6.83.
GuruFocus considers FSE Lifestyle Services to be Modestly Undervalued.
Key valuation signals for HKSE:00331:
Operating Margin %: 6.71% (near median its 10-year median of 6.75)
GF Value™: HK$6.83 vs. price of HK$5.12 (25% below fair value)
Industry Position: 13.9% above the Construction median (#830 of 1767)
No single metric tells the full story. See the HKSE:00331 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
FSE Lifestyle Services Ltd is an investment holding company operating mainly in Hong Kong, Mainland China, and Macau. Along with its subsidiaries, the company provides services through three key segments: property and facility management, city essential services, and electrical and mechanical engineering services. The property and facility management segment offers building management, property agency, car park management, and security services. City essential services include cleaning, pest control, waste disposal, recycling, environmental solutions, insurance, and event services. The electrical and mechanical segment focuses on engineering and consultancy related to installations. The majority of revenue is generated from the Property & facility management services segment.
74GF Score
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