Fosun InternationalHKSE:00656 -2.82%77 Operating Margin % is 0.74% as of Dec. 2025, which is 80% below its 10-year median of 3.78. GuruFocus rates HKSE:00656 with a GF Score™ of 77/100 and a GF Value™ of HK$4.53 (Modestly Undervalued). The stock has 8 warning signs investors should review. Among 548 Conglomerates companies, Fosun International ranks worse than 68.8% on this metric.
Fosun International (HKSE:00656) 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.
Fosun International Operating Margin % Related Terms
Fosun International Operating Margin % Historical Data
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The historical data trend for Fosun International'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:00656 vs HON, MMM: Operating Margin % Comparison
For the Conglomerates subindustry, Fosun International'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.
Fosun International Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Fosun International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fosun International's Operating Margin % falls into.
Fosun International 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.
Fosun International's Operating Margin % for the fiscal year that ended in Dec. 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.
Fosun International (HKSE:00656) has a Operating Margin % of 0.74% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Fosun International and its competitors. This is 80% below median its historical median of 3.78. Over the past decade, Fosun International's Operating Margin % has ranged from 1.23 to 7.36. According to the industry distribution chart, Fosun International ranks #377 out of 548 companies in the Conglomerates industry, placing it in the top 68.8%.
Is Fosun International's Operating Margin % too high?
Fosun International's current Operating Margin % of 0.74% is 80% below median its 10-year median of 3.78. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 7.36. The Conglomerates industry median Operating Margin % is 5.86. Fosun International's value of 0.74% is 87.4% below this industry median. Based on the distribution chart, Fosun International ranks #377 out of 548 companies in the Conglomerates industry, which is below the industry midpoint. Overall, Fosun International has a GF Score™ of 77/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Fosun International's Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Fosun International ranks #377 out of 548 companies for Operating Margin %. This places Fosun International in the lower half of its industry. The industry median Operating Margin % is 5.86. Fosun International's value of 0.74% is 87.4% below this benchmark. Historically, Fosun International's own Operating Margin % has ranged from 1.23 to 7.36 over the past decade. While the company's 10-year median is 3.78 vs. the industry median of 5.86, Fosun International 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 5.86, based on 548 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. Fosun International's current Operating Margin % of 0.74% is 87.4% 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 Fosun International and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Fosun International's current Operating Margin % is 0.74%, which is 80% below median its own 10-year median of 3.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fosun International stock overvalued right now?
Based on GuruFocus' analysis, Fosun International (HKSE:00656) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$4.53, compared to a current price of HK$3.79 — trading 16.3% below its estimated fair value. The current Operating Margin % is 0.74%, which is 80% below median its 10-year median of 3.78 and 87.4% below the Conglomerates industry median of 5.86. Fosun International's overall GF Score™ is 77/100 with 8 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 Fosun International (HKSE:00656), the current Operating Margin % is 0.74% 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 Fosun International (HKSE:00656) Overvalued in 2026?
Based on GuruFocus' analysis, Fosun International stock appears to be undervalued.
The current stock price of HK$3.79 is trading 16.3% below its estimated GF Value™ of HK$4.53.
GuruFocus considers Fosun International to be Modestly Undervalued.
Key valuation signals for HKSE:00656:
Operating Margin %: 0.74% (80% below median its 10-year median of 3.78)
GF Value™: HK$4.53 vs. price of HK$3.79 (16.3% below fair value)
Industry Position: 87.4% below the Conglomerates median (#377 of 548)
No single metric tells the full story. See the HKSE:00656 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fosun International Ltd is an investment holding company that is also an international innovation-driven consumer group dedicated to providing high-quality products and services for families around the world. The company's operating segments include Health, Happiness, Wealth, and Intelligent Manufacturing. It generates maximum revenue from the Happiness segment. The Wealth Segment includes two sub-segments: Insurance and Asset Management. The Happiness segment comprises principally the operation and investments in tourism and leisure, fashion, consumer, and lifestyle industries. Geographically, it derives a majority of its revenue from the Chinese Mainland, while it also has its presence in Portugal; and Other Countries.
77GF Score
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