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The historical rank and industry rank for China Financial Services Holdings's Operating Margin % or its related term are showing as below:
HKSE:00605'
s Operating Margin % Range Over the Past 10 Years
Min: -14.79 Med: 32.61 Max: 78.63
Current: 25.33
HKSE:00605's Operating Margin % is ranked better than 56.59% of 417
companies
in the Credit Services industry
Industry Median: 20.19
vs HKSE:00605: 25.33
China Financial Services Holdings (HKSE:00605) 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.
China Financial Services Holdings Operating Margin % Related Terms
China Financial Services 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.
China Financial Services Holdings Operating Margin % Chart
HKSE:00605 vs V, MA, AXP: Operating Margin % Comparison
For the Credit Services subindustry, China Financial Services 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.
China Financial Services Holdings Operating Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, China Financial Services Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Financial Services Holdings's Operating Margin % falls into.
China Financial Services 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.
* 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.
China Financial Services Holdings (HKSE:00605) has a Operating Margin % of 43.64% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Financial Services Holdings and its competitors. This is 34% above median its historical median of 32.61. According to the industry distribution chart, China Financial Services Holdings ranks #181 out of 417 companies in the Credit Services industry, placing it in the top 43.4%.
Is China Financial Services Holdings' Operating Margin % too high?
China Financial Services Holdings' current Operating Margin % of 43.64% is 34% above median its 10-year median of 32.61. The Credit Services industry median Operating Margin % is 20.19. China Financial Services Holdings' value of 43.64% is 116.1% above this industry median. Based on the distribution chart, China Financial Services Holdings ranks #181 out of 417 companies in the Credit Services industry, which is above the industry midpoint. Overall, China Financial Services Holdings has a GF Score™ of 42/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Financial Services Holdings' Operating Margin % compare to V and MA?
According to the Credit Services industry distribution chart, China Financial Services Holdings ranks #181 out of 417 companies for Operating Margin %. This puts China Financial Services Holdings in the upper half of its industry. The industry median Operating Margin % is 20.19. China Financial Services Holdings' value of 43.64% is 116.1% above this benchmark. While the company's 10-year median is 32.61 vs. the industry median of 20.19, China Financial Services Holdings 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 Credit Services company?
The median Operating Margin % among Credit Services companies is 20.19, based on 417 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. China Financial Services Holdings's current Operating Margin % of 43.64% is 116.1% 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 China Financial Services Holdings and its competitors. For the Credit Services industry, the median Operating Margin % is 20.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Financial Services Holdings's current Operating Margin % is 43.64%, which is 34% above median its own 10-year median of 32.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Financial Services Holdings stock overvalued right now?
Based on GuruFocus' analysis, China Financial Services Holdings (HKSE:00605) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.47, compared to a current price of HK$0.86 — trading 81.9% above its estimated fair value. The current Operating Margin % is 43.64%, which is 34% above median its 10-year median of 32.61 and 116.1% above the Credit Services industry median of 20.19. China Financial Services Holdings' overall GF Score™ is 42/100 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 China Financial Services Holdings (HKSE:00605), the current Operating Margin % is 43.64% 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 China Financial Services Holdings (HKSE:00605) Overvalued in 2026?
Based on GuruFocus' analysis, China Financial Services Holdings stock appears to be overvalued.
The current stock price of HK$0.86 is trading 81.9% above its estimated GF Value™ of HK$0.47.
GuruFocus considers China Financial Services Holdings to be Significantly Overvalued.
Key valuation signals for HKSE:00605:
Operating Margin %: 43.64% (34% above median its 10-year median of 32.61)
GF Value™: HK$0.47 vs. price of HK$0.86 (81.9% above fair value)
Industry Position: 116.1% above the Credit Services median (#181 of 417)
No single metric tells the full story. See the HKSE:00605 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Financial Services Holdings Ltd is engaged in the provision of financing services in four operating regions, namely Hong Kong, Shenzhen, Chengdu, and Beijing. The clients are individual customers and corporate customers located in Hong Kong and the PRC. The group identifies potential customers through in-house sales teams, referrals, and networks with commercial banks, property developers, and small-to-medium-sized enterprises. The company's reportable segment are; financing services, and education service. Geographically, revenue is derived from the People's Republic of China.
42GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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