Tiangong International CoHKSE:00826 +1.82%77 Operating Margin % is 11.77% as of Dec. 2025, which is 21% above its 10-year median of 9.76. GuruFocus rates HKSE:00826 with a GF Score™ of 77/100 and a GF Value™ of HK$2.46 (Significantly Overvalued). The stock has 12 warning signs investors should review. Among 610 Steel companies, Tiangong International Co ranks better than 80.82% on this metric.
Tiangong International Co (HKSE:00826) 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.
Tiangong International Co Operating Margin % Related Terms
Tiangong International 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.
Tiangong International Co Operating Margin % Chart
HKSE:00826 vs NUE, STLD, RS: Operating Margin % Comparison
For the Steel subindustry, Tiangong International 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.
Tiangong International Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Tiangong International Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tiangong International Co's Operating Margin % falls into.
Tiangong International 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.
Tiangong International Co'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.
Tiangong International Co (HKSE:00826) has a Operating Margin % of 11.77% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tiangong International Co and its competitors. This is 21% above median its historical median of 9.76. Over the past decade, Tiangong International Co's Operating Margin % has ranged from 5.89 to 14.69. According to the industry distribution chart, Tiangong International Co ranks #117 out of 610 companies in the Steel industry, placing it in the top 19.2%.
Is Tiangong International Co's Operating Margin % too high?
Tiangong International Co's current Operating Margin % of 11.77% is 21% above median its 10-year median of 9.76. Over the past 10 years, this metric has ranged from a low of 5.89 to a high of 14.69. The Steel industry median Operating Margin % is 3.00. Tiangong International Co's value of 11.77% is 292.3% above this industry median. Based on the distribution chart, Tiangong International Co ranks #117 out of 610 companies in the Steel industry, which is in the top quartile — a strong position relative to peers. Overall, Tiangong International Co has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Tiangong International Co's Operating Margin % compare to NUE and STLD?
According to the Steel industry distribution chart, Tiangong International Co ranks #117 out of 610 companies for Operating Margin %. This places Tiangong International Co in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.00. Tiangong International Co's value of 11.77% is 292.3% above this benchmark. Historically, Tiangong International Co's own Operating Margin % has ranged from 5.89 to 14.69 over the past decade. While the company's 10-year median is 9.76 vs. the industry median of 3.00, Tiangong International Co 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 610 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. Tiangong International Co's current Operating Margin % of 11.77% is 292.3% 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 Tiangong International Co and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tiangong International Co's current Operating Margin % is 11.77%, which is 21% above median its own 10-year median of 9.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tiangong International Co stock overvalued right now?
Based on GuruFocus' analysis, Tiangong International Co (HKSE:00826) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$2.46, compared to a current price of HK$3.92 — trading 59.3% above its estimated fair value. The current Operating Margin % is 11.77%, which is 21% above median its 10-year median of 9.76 and 292.3% above the Steel industry median of 3.00. Tiangong International Co's overall GF Score™ is 77/100 with 12 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 Tiangong International Co (HKSE:00826), the current Operating Margin % is 11.77% 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 Tiangong International Co (HKSE:00826) Overvalued in 2026?
Based on GuruFocus' analysis, Tiangong International Co stock appears to be overvalued.
The current stock price of HK$3.92 is trading 59.3% above its estimated GF Value™ of HK$2.46.
GuruFocus considers Tiangong International Co to be Significantly Overvalued.
Key valuation signals for HKSE:00826:
Operating Margin %: 11.77% (21% above median its 10-year median of 9.76)
GF Value™: HK$2.46 vs. price of HK$3.92 (59.3% above fair value)
Industry Position: 292.3% above the Steel median (#117 of 610)
No single metric tells the full story. See the HKSE:00826 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tiangong International Co Ltd is engaged in the manufacturing and sales of high alloy steel, cutting tools, titanium alloy, trading of goods, and others. The reportable segments of the company are, the DS segment, which derives majority revenue, manufactures and sells materials that are used in the die set manufacturing industry; the HSS segment manufactures and sells materials that are used in the tools manufacturing industry; the cutting tools segment manufactures and sells HSS and carbide cutting tools to the tooling industry; the Titanium alloy segment manufactures and sells titanium alloys to the titanium industry; and the Others segment assembles and sells power tool kits. The company operates in PRC, North America, Europe, Asia (other than the PRC), and other regions.
77GF Score
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