V.S. International GroupHKSE:01002 Operating Margin % is 5.02% as of Jun. 2025, which is 498% above its 10-year median of 0.84. The stock has 2 warning signs investors should review. Among 1,585 Chemicals companies, V.S. International Group ranks worse than 89.21% on this metric.
V.S. International Group (HKSE:01002) 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.
V.S. International Group Operating Margin % Related Terms
V.S. International Group 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.
HKSE:01002 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, V.S. International Group'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.
V.S. International Group Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, V.S. International Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where V.S. International Group's Operating Margin % falls into.
V.S. International Group 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.
V.S. International Group's Operating Margin % for the fiscal year that ended in Jul. 2023 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.
V.S. International Group (HKSE:01002) has a Operating Margin % of 5.02% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on V.S. International Group and its competitors. This is 498% above median its historical median of 0.84. According to the industry distribution chart, V.S. International Group ranks #1414 out of 1585 companies in the Chemicals industry, placing it in the top 89.2%.
Is V.S. International Group's Operating Margin % too high?
V.S. International Group's current Operating Margin % of 5.02% is 498% above median its 10-year median of 0.84. The Chemicals industry median Operating Margin % is 6.02. V.S. International Group's value of 5.02% is 16.6% below this industry median. Based on the distribution chart, V.S. International Group ranks #1414 out of 1585 companies in the Chemicals industry, which is in the bottom quartile relative to peers.
How does V.S. International Group's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, V.S. International Group ranks #1414 out of 1585 companies for Operating Margin %. This places V.S. International Group in the lower half of its industry. The industry median Operating Margin % is 6.02. V.S. International Group's value of 5.02% is 16.6% below this benchmark. While the company's 10-year median is 0.84 vs. the industry median of 6.02, V.S. International Group 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 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. V.S. International Group's current Operating Margin % of 5.02% is 16.6% 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 V.S. International Group and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. V.S. International Group's current Operating Margin % is 5.02%, which is 498% above median its own 10-year median of 0.84. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is V.S. International Group stock overvalued right now?
Based on GuruFocus' analysis, V.S. International Group (HKSE:01002) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.20, compared to a current price of HK$0.05 — trading 74.5% below its estimated fair value. The current Operating Margin % is 5.02%, which is 498% above median its 10-year median of 0.84 and 16.6% below the Chemicals industry median of 6.02. 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 V.S. International Group (HKSE:01002), the current Operating Margin % is 5.02% as of Jun. 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.
V.S. International Group Ltd is an investment holding company. It is engaged in the plastic injection and moulding business. It operates in three segments. The Plastic injection and moulding segment, which is the key revenue driver, manufactures and sells plastic moulded products and parts; the Assembling of electronic products segment assembles and sells electronic products, this segment also includes processing fees generated from assembling electronic products; the Mould design and fabrication segment manufactures and sells plastic injection moulds.
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