Frontage HoldingsHKSE:01521 +2.08%88 Operating Margin % is 8.32% as of Dec. 2025, which is 42% below its 10-year median of 14.28. GuruFocus rates HKSE:01521 with a GF Score™ of 88/100 and a GF Value™ of HK$1.53 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 939 Biotechnology companies, Frontage Holdings ranks better than 78.49% on this metric.
Frontage Holdings Corp operating margin has been in a 5-year decline. The average rate of decline per year is -20.4%.
The historical rank and industry rank for Frontage Holdings's Operating Margin % or its related term are showing as below:
HKSE:01521'
s Operating Margin % Range Over the Past 10 Years
Min: 3.66 Med: 14.28 Max: 28.38
Current: 7.64
HKSE:01521's Operating Margin % is ranked better than 78.49% of 939
companies
in the Biotechnology industry
Industry Median: -86.77
vs HKSE:01521: 7.64
Frontage Holdings's 5-Year Average Operating Margin % Growth Rate was -20.40% per year.
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.
Frontage Holdings Operating Margin % Related Terms
Frontage Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for Frontage 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:01521 vs VRTX, REGN, ALNY: Operating Margin % Comparison
For the Biotechnology subindustry, Frontage 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.
Frontage Holdings Operating Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Frontage Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Frontage 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.
Frontage Holdings'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.
Frontage Holdings (HKSE:01521) has a Operating Margin % of 8.32% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Frontage Holdings and its competitors. This is 42% below median its historical median of 14.28. Over the past decade, Frontage Holdings' Operating Margin % has ranged from 3.66 to 28.38. According to the industry distribution chart, Frontage Holdings ranks #202 out of 939 companies in the Biotechnology industry, placing it in the top 21.5%.
Is Frontage Holdings' Operating Margin % too high?
Frontage Holdings' current Operating Margin % of 8.32% is 42% below median its 10-year median of 14.28. Over the past 10 years, this metric has ranged from a low of 3.66 to a high of 28.38. Based on the distribution chart, Frontage Holdings ranks #202 out of 939 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Frontage Holdings has a GF Score™ of 88/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Frontage Holdings' Operating Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Frontage Holdings ranks #202 out of 939 companies for Operating Margin %. This places Frontage Holdings in the top 22% of its industry — outperforming the majority of peers. Historically, Frontage Holdings' own Operating Margin % has ranged from 3.66 to 28.38 over the past decade. 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 Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. 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 Frontage Holdings and its competitors. Frontage Holdings's current Operating Margin % is 8.32%, which is 42% below median its own 10-year median of 14.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Frontage Holdings stock overvalued right now?
Based on GuruFocus' analysis, Frontage Holdings (HKSE:01521) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.53, compared to a current price of HK$0.98 — trading 35.9% below its estimated fair value. The current Operating Margin % is 8.32%, which is 42% below median its 10-year median of 14.28. Frontage Holdings' overall GF Score™ is 88/100 with 8 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 Frontage Holdings (HKSE:01521), the current Operating Margin % is 8.32% 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 Frontage Holdings (HKSE:01521) Overvalued in 2026?
Based on GuruFocus' analysis, Frontage Holdings stock appears to be undervalued.
The current stock price of HK$0.98 is trading 35.9% below its estimated GF Value™ of HK$1.53.
GuruFocus considers Frontage Holdings to be Possible Value Trap.
Key valuation signals for HKSE:01521:
Operating Margin %: 8.32% (42% below median its 10-year median of 14.28)
GF Value™: HK$1.53 vs. price of HK$0.98 (35.9% below fair value)
No single metric tells the full story. See the HKSE:01521 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Frontage Holdings Corp provides laboratory and related services to pharmaceutical and agrochemical companies. Its segments include North America and Europe segment, including drug discovery, drug development, pharmaceutical product development and laboratory testing in the USA, Canada and Europe; and PRC segment, including drug discovery, drug development, pharmaceutical product development and laboratory testing in the PRC. It derives majority of the revenue from North America and Europe segment. Geographically majority of the revenue is derived from USA and Canada.
88GF Score
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