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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.
Eternity Investment Operating Margin % Related Terms
Eternity Investment Operating Margin % Historical Data
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The historical data trend for Eternity Investment'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:00764 vs MMM, HON: Operating Margin % Comparison
For the Conglomerates subindustry, Eternity Investment'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.
Eternity Investment Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Eternity Investment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Eternity Investment'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.
Eternity Investment'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.
Eternity Investment (HKSE:00764) has a Operating Margin % of -19.03% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Eternity Investment and its competitors. According to the industry distribution chart, Eternity Investment ranks #467 out of 537 companies in the Conglomerates industry, placing it in the top 87%.
Is Eternity Investment's Operating Margin % too high?
Eternity Investment's current Operating Margin % is -19.03%. Based on the distribution chart, Eternity Investment ranks #467 out of 537 companies in the Conglomerates industry, which is in the bottom quartile relative to peers. Overall, Eternity Investment has a GF Score™ of 30/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Eternity Investment's Operating Margin % compare to MMM and HON?
According to the Conglomerates industry distribution chart, Eternity Investment ranks #467 out of 537 companies for Operating Margin %. This places Eternity Investment in the lower half of its industry. The industry median Operating Margin % is 5.79. 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 5.79, based on 537 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. 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 Eternity Investment and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eternity Investment's current Operating Margin % is -19.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eternity Investment stock overvalued right now?
Based on GuruFocus' analysis, Eternity Investment (HKSE:00764) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.83, compared to a current price of HK$0.27 — trading 67.5% below its estimated fair value. The current Operating Margin % is -19.03%. Eternity Investment's overall GF Score™ is 30/100 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 Eternity Investment (HKSE:00764), the current Operating Margin % is -19.03% 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 Eternity Investment (HKSE:00764) Overvalued in 2026?
Based on GuruFocus' analysis, Eternity Investment stock appears to be undervalued.
The current stock price of HK$0.27 is trading 67.5% below its estimated GF Value™ of HK$0.83.
GuruFocus considers Eternity Investment to be Possible Value Trap.
Key valuation signals for HKSE:00764:
Operating Margin %: -19.03%
GF Value™: HK$0.83 vs. price of HK$0.27 (67.5% below fair value)
No single metric tells the full story. See the HKSE:00764 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eternity Investment Ltd is an investment holding company. Along with its subsidiaries, it is engaged in the sale of financial assets, property investment, money lending, design and sale of jewelry products, and operation of a golf course in the People's Republic of China (PRC). These business activities are also classified as its operating segments. The majority of the Group's revenue comes from the golf club operations business in China, which mainly derives income from membership, golf club operation, and food and beverage operation. Geographically, it generates maximum revenue from the PRC, and the rest from Hong Kong, Asia, Australia, Europe, North America, and the Middle East.
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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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