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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.
BII Railway Transportation Technology Holdings Co Operating Margin % Related Terms
BII Railway Transportation Technology Holdings 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.
BII Railway Transportation Technology Holdings Co Operating Margin % Chart
BII Railway Transportation Technology Holdings Co Annual Data
HKSE:01522 vs IBM, ACN, FISV: Operating Margin % Comparison
For the Information Technology Services subindustry, BII Railway Transportation Technology Holdings 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.
BII Railway Transportation Technology Holdings Co Operating Margin % vs Software Industry
BII Railway Transportation Technology Holdings 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.
* 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.
BII Railway Transportation Technology Holdings Co (HKSE:01522) has a Operating Margin % of 14.06% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on BII Railway Transportation Technology Holdings Co and its competitors. This is 37% above median its historical median of 10.30. Over the past decade, BII Railway Transportation Technology Holdings Co's Operating Margin % has ranged from 0.44 to 16.34. According to the industry distribution chart, BII Railway Transportation Technology Holdings Co ranks #852 out of 2825 companies in the Software industry, placing it in the top 30.2%.
Is BII Railway Transportation Technology Holdings Co's Operating Margin % too high?
BII Railway Transportation Technology Holdings Co's current Operating Margin % of 14.06% is 37% above median its 10-year median of 10.30. Over the past 10 years, this metric has ranged from a low of 0.44 to a high of 16.34. The Software industry median Operating Margin % is 3.95. BII Railway Transportation Technology Holdings Co's value of 14.06% is 255.9% above this industry median. Based on the distribution chart, BII Railway Transportation Technology Holdings Co ranks #852 out of 2825 companies in the Software industry, which is above the industry midpoint. Overall, BII Railway Transportation Technology Holdings Co has a GF Score™ of 53/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does BII Railway Transportation Technology Holdings Co's Operating Margin % compare to IBM and ACN?
According to the Software industry distribution chart, BII Railway Transportation Technology Holdings Co ranks #852 out of 2825 companies for Operating Margin %. This puts BII Railway Transportation Technology Holdings Co in the upper half of its industry. The industry median Operating Margin % is 3.95. BII Railway Transportation Technology Holdings Co's value of 14.06% is 255.9% above this benchmark. Historically, BII Railway Transportation Technology Holdings Co's own Operating Margin % has ranged from 0.44 to 16.34 over the past decade. While the company's 10-year median is 10.30 vs. the industry median of 3.95, BII Railway Transportation Technology Holdings 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 Software company?
The median Operating Margin % among Software companies is 3.95, based on 2,825 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. BII Railway Transportation Technology Holdings Co's current Operating Margin % of 14.06% is 255.9% 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 BII Railway Transportation Technology Holdings Co and its competitors. For the Software industry, the median Operating Margin % is 3.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BII Railway Transportation Technology Holdings Co's current Operating Margin % is 14.06%, which is 37% above median its own 10-year median of 10.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BII Railway Transportation Technology Holdings Co stock overvalued right now?
Based on GuruFocus' analysis, BII Railway Transportation Technology Holdings Co (HKSE:01522) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.32, compared to a current price of HK$0.21 — trading 33.4% below its estimated fair value. The current Operating Margin % is 14.06%, which is 37% above median its 10-year median of 10.30 and 255.9% above the Software industry median of 3.95. BII Railway Transportation Technology Holdings Co's overall GF Score™ is 53/100 with 4 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 BII Railway Transportation Technology Holdings Co (HKSE:01522), the current Operating Margin % is 14.06% 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 BII Railway Transportation Technology Holdings Co (HKSE:01522) Overvalued in 2026?
Based on GuruFocus' analysis, BII Railway Transportation Technology Holdings Co stock appears to be undervalued.
The current stock price of HK$0.21 is trading 33.4% below its estimated GF Value™ of HK$0.32.
GuruFocus considers BII Railway Transportation Technology Holdings Co to be Possible Value Trap.
Key valuation signals for HKSE:01522:
Operating Margin %: 14.06% (37% above median its 10-year median of 10.30)
GF Value™: HK$0.32 vs. price of HK$0.21 (33.4% below fair value)
Industry Position: 255.9% above the Software median (#852 of 2825)
No single metric tells the full story. See the HKSE:01522 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BII Railway Transportation Technology Holdings Co Ltd is engaged in designing, implementing, selling, and maintenance, of application solutions for the networking and controlling systems of public transport. Its segments include Intelligent passenger information services; Digital-intelligence urban rail services; Innovative development; and Business development investment. The key part of the revenue is from the Intelligent passenger information services that provides design, production, implementation and sale, and maintenance of application solution services, which include related software, hardware, and spare parts in railway transportation areas. The group's revenue is derived from Mainland China, Hong Kong and Overseas.
53GF Score
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