Shandong Xinhua Pharmaceutical Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.5%.
The historical rank and industry rank for Shandong Xinhua Pharmaceutical Co's Operating Margin % or its related term are showing as below:
HKSE:00719'
s Operating Margin % Range Over the Past 10 Years
Min: 4.9 Med: 7.4 Max: 9.1
Current: 4.9
HKSE:00719's Operating Margin % is ranked worse than 58.39% of 954
companies
in the Drug Manufacturers industry
Industry Median: 7.58
vs HKSE:00719: 4.90
Shandong Xinhua Pharmaceutical Co (HKSE:00719) 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.
Shandong Xinhua Pharmaceutical Co Operating Margin % Related Terms
Shandong Xinhua Pharmaceutical Co 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.
Shandong Xinhua Pharmaceutical Co Operating Margin % Chart
HKSE:00719 vs ZTS, UTHR: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Shandong Xinhua Pharmaceutical 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.
Shandong Xinhua Pharmaceutical Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shandong Xinhua Pharmaceutical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Xinhua Pharmaceutical Co's Operating Margin % falls into.
Shandong Xinhua Pharmaceutical Co 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.
Shandong Xinhua Pharmaceutical Co (HKSE:00719) has a Operating Margin % of 5.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shandong Xinhua Pharmaceutical Co and its competitors. This is 26% below median its historical median of 7.40. Over the past decade, Shandong Xinhua Pharmaceutical Co's Operating Margin % has ranged from 4.90 to 9.10. According to the industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #557 out of 954 companies in the Drug Manufacturers industry, placing it in the top 58.4%.
Is Shandong Xinhua Pharmaceutical Co's Operating Margin % too high?
Shandong Xinhua Pharmaceutical Co's current Operating Margin % of 5.50% is 26% below median its 10-year median of 7.40. Over the past 10 years, this metric has ranged from a low of 4.90 to a high of 9.10. The Drug Manufacturers industry median Operating Margin % is 7.58. Shandong Xinhua Pharmaceutical Co's value of 5.50% is 27.4% below this industry median. Based on the distribution chart, Shandong Xinhua Pharmaceutical Co ranks #557 out of 954 companies in the Drug Manufacturers industry, which is below the industry midpoint. Overall, Shandong Xinhua Pharmaceutical Co has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Xinhua Pharmaceutical Co's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Shandong Xinhua Pharmaceutical Co ranks #557 out of 954 companies for Operating Margin %. This places Shandong Xinhua Pharmaceutical Co in the lower half of its industry. The industry median Operating Margin % is 7.58. Shandong Xinhua Pharmaceutical Co's value of 5.50% is 27.4% below this benchmark. Historically, Shandong Xinhua Pharmaceutical Co's own Operating Margin % has ranged from 4.90 to 9.10 over the past decade. While the company's 10-year median is 7.40 vs. the industry median of 7.58, Shandong Xinhua Pharmaceutical Co 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.58, based on 954 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. Shandong Xinhua Pharmaceutical Co's current Operating Margin % of 5.50% is 27.4% 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 Shandong Xinhua Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Xinhua Pharmaceutical Co's current Operating Margin % is 5.50%, which is 26% below median its own 10-year median of 7.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Xinhua Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Xinhua Pharmaceutical Co (HKSE:00719) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$7.57, compared to a current price of HK$5.87 — trading 22.5% below its estimated fair value. The current Operating Margin % is 5.50%, which is 26% below median its 10-year median of 7.40 and 27.4% below the Drug Manufacturers industry median of 7.58. Shandong Xinhua Pharmaceutical Co's overall GF Score™ is 94/100 with 5 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 Shandong Xinhua Pharmaceutical Co (HKSE:00719), the current Operating Margin % is 5.50% as of Mar. 2026. 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 Shandong Xinhua Pharmaceutical Co (HKSE:00719) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Xinhua Pharmaceutical Co stock appears to be undervalued.
The current stock price of HK$5.87 is trading 22.5% below its estimated GF Value™ of HK$7.57.
GuruFocus considers Shandong Xinhua Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for HKSE:00719:
Operating Margin %: 5.50% (26% below median its 10-year median of 7.40)
GF Value™: HK$7.57 vs. price of HK$5.87 (22.5% below fair value)
Industry Position: 27.4% below the Drug Manufacturers median (#557 of 954)
No single metric tells the full story. See the HKSE:00719 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Xinhua Pharmaceutical Co Business Description
Shandong Xinhua Pharmaceutical Co Ltd is a pharmaceutical products manufacturer based in China. It operates various segments namely Chemical raw materials, Preparations, Pharmaceutical intermediates and other products. The company is mainly engaged in the business of development, manufacture and sale of bulk pharmaceuticals, preparations and chemical products.
94GF Score
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