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.
Tsui Wah Holdings Operating Margin % Related Terms
Tsui Wah Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for Tsui Wah Holdings'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:01314 vs MCD, SBUX, YUM: Operating Margin % Comparison
For the Restaurants subindustry, Tsui Wah Holdings'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.
Tsui Wah Holdings Operating Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Tsui Wah Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tsui Wah Holdings'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.
Tsui Wah Holdings's Operating Margin % for the fiscal year that ended in Mar. 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.
Tsui Wah Holdings (HKSE:01314) has a Operating Margin % of 0.46% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Tsui Wah Holdings and its competitors. According to the industry distribution chart, Tsui Wah Holdings ranks #281 out of 359 companies in the Restaurants industry, placing it in the top 78.3%.
Is Tsui Wah Holdings' Operating Margin % too high?
Tsui Wah Holdings' current Operating Margin % is 0.46%. The Restaurants industry median Operating Margin % is 4.43. Tsui Wah Holdings' value of 0.46% is 89.6% below this industry median. Based on the distribution chart, Tsui Wah Holdings ranks #281 out of 359 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Tsui Wah Holdings has a GF Score™ of 37/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tsui Wah Holdings' Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Tsui Wah Holdings ranks #281 out of 359 companies for Operating Margin %. This places Tsui Wah Holdings in the lower half of its industry. The industry median Operating Margin % is 4.43. Tsui Wah Holdings' value of 0.46% is 89.6% below this benchmark. 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 Restaurants company?
The median Operating Margin % among Restaurants companies is 4.43, based on 359 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. Tsui Wah Holdings's current Operating Margin % of 0.46% is 89.6% 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 Tsui Wah Holdings and its competitors. For the Restaurants industry, the median Operating Margin % is 4.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tsui Wah Holdings's current Operating Margin % is 0.46%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tsui Wah Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tsui Wah Holdings (HKSE:01314) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.21, compared to a current price of HK$0.19 — trading 10.5% below its estimated fair value. The current Operating Margin % is 0.46% and 89.6% below the Restaurants industry median of 4.43. Tsui Wah Holdings' overall GF Score™ is 37/100 with 6 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 Tsui Wah Holdings (HKSE:01314), the current Operating Margin % is 0.46% as of Sep. 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 Tsui Wah Holdings (HKSE:01314) Overvalued in 2026?
Based on GuruFocus' analysis, Tsui Wah Holdings stock appears to be undervalued.
The current stock price of HK$0.19 is trading 10.5% below its estimated GF Value™ of HK$0.21.
GuruFocus considers Tsui Wah Holdings to be Modestly Undervalued.
Key valuation signals for HKSE:01314:
Operating Margin %: 0.46%
GF Value™: HK$0.21 vs. price of HK$0.19 (10.5% below fair value)
Industry Position: 89.6% below the Restaurants median (#281 of 359)
No single metric tells the full story. See the HKSE:01314 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tsui Wah Holdings Ltd is an investment holding company. The company is principally engaged in the provision of food catering services through restaurants in Hong Kong, the People's Republic of China, Macau, and other locations. Geographically, the majority of its revenue comes from Hong Kong.
37GF Score
Get the complete analysis for HKSE:01314
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
HKSE:01314 has been successfully added to your 
