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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.
Pangaea Connectivity Technology Operating Margin % Related Terms
Pangaea Connectivity Technology 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:01473 vs CSCO, MSI, HPE: Operating Margin % Comparison
For the Communication Equipment subindustry, Pangaea Connectivity Technology'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.
Pangaea Connectivity Technology Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Pangaea Connectivity Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Pangaea Connectivity Technology'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.
* 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.
Pangaea Connectivity Technology (HKSE:01473) has a Operating Margin % of 3.24% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Pangaea Connectivity Technology and its competitors. This is 13% above median its historical median of 2.88. According to the industry distribution chart, Pangaea Connectivity Technology ranks #1405 out of 2474 companies in the Hardware industry, placing it in the top 56.8%.
Is Pangaea Connectivity Technology's Operating Margin % too high?
Pangaea Connectivity Technology's current Operating Margin % of 3.24% is 13% above median its 10-year median of 2.88. The Hardware industry median Operating Margin % is 4.06. Pangaea Connectivity Technology's value of 3.24% is 20.1% below this industry median. Based on the distribution chart, Pangaea Connectivity Technology ranks #1405 out of 2474 companies in the Hardware industry, which is below the industry midpoint. Overall, Pangaea Connectivity Technology has a GF Score™ of 51/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Pangaea Connectivity Technology's Operating Margin % compare to CSCO and MSI?
According to the Hardware industry distribution chart, Pangaea Connectivity Technology ranks #1405 out of 2474 companies for Operating Margin %. This places Pangaea Connectivity Technology in the lower half of its industry. The industry median Operating Margin % is 4.06. Pangaea Connectivity Technology's value of 3.24% is 20.1% below this benchmark. While the company's 10-year median is 2.88 vs. the industry median of 4.06, Pangaea Connectivity Technology 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 Hardware company?
The median Operating Margin % among Hardware companies is 4.06, based on 2,474 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. Pangaea Connectivity Technology's current Operating Margin % of 3.24% is 20.1% 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 Pangaea Connectivity Technology and its competitors. For the Hardware industry, the median Operating Margin % is 4.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Pangaea Connectivity Technology's current Operating Margin % is 3.24%, which is 13% above median its own 10-year median of 2.88. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Pangaea Connectivity Technology stock overvalued right now?
Based on GuruFocus' analysis, Pangaea Connectivity Technology (HKSE:01473) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.37, compared to a current price of HK$1.23 — trading 232.4% above its estimated fair value. The current Operating Margin % is 3.24%, which is 13% above median its 10-year median of 2.88 and 20.1% below the Hardware industry median of 4.06. Pangaea Connectivity Technology's overall GF Score™ is 51/100 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 Pangaea Connectivity Technology (HKSE:01473), the current Operating Margin % is 3.24% 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 Pangaea Connectivity Technology (HKSE:01473) Overvalued in 2026?
Based on GuruFocus' analysis, Pangaea Connectivity Technology stock appears to be overvalued.
The current stock price of HK$1.23 is trading 232.4% above its estimated GF Value™ of HK$0.37.
GuruFocus considers Pangaea Connectivity Technology to be Significantly Overvalued.
Key valuation signals for HKSE:01473:
Operating Margin %: 3.24% (13% above median its 10-year median of 2.88)
GF Value™: HK$0.37 vs. price of HK$1.23 (232.4% above fair value)
Industry Position: 20.1% below the Hardware median (#1405 of 2474)
No single metric tells the full story. See the HKSE:01473 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Pangaea Connectivity Technology Ltd is involved in the telecom and datacom connectivity industry. It offers connectivity products covering wireless microwave networks, optical networks from access to metro to regional and long haul, and data center and commercial networks for cellular, fixed, personal and private usage. The company is principally engaged in import and export of connectivity products which are used in telecom and datacom connectivity industry for different end applications such as telecom infrastructure, data centres, high performance computing, IoT, and network connectivity products.
51GF Score
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