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Virscend Education CoHKSE:01565 -0.51%57 Operating Margin % is 18.28% as of Feb. 2026, which is 27% below its 10-year median of 25.15. GuruFocus rates HKSE:01565 with a GF Score™ of 57/100 and a GF Value™ of HK$0.24 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 256 Education companies, Virscend Education Co ranks better than 63.28% on this metric.
Virscend Education Co (HKSE:01565) 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.
Virscend Education Co Operating Margin % Related Terms
Virscend Education Co Operating Margin % Historical Data
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The historical data trend for Virscend Education Co'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:01565 vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, Virscend Education 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.
Virscend Education Co Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Virscend Education Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Virscend Education Co's Operating Margin % falls into.
Virscend Education 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.
Virscend Education Co's Operating Margin % for the fiscal year that ended in Aug. 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.
Virscend Education Co (HKSE:01565) has a Operating Margin % of 18.28% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Virscend Education Co and its competitors. This is 27% below median its historical median of 25.15. According to the industry distribution chart, Virscend Education Co ranks #94 out of 256 companies in the Education industry, placing it in the top 36.7%.
Is Virscend Education Co's Operating Margin % too high?
Virscend Education Co's current Operating Margin % of 18.28% is 27% below median its 10-year median of 25.15. The Education industry median Operating Margin % is 10.05. Virscend Education Co's value of 18.28% is 82% above this industry median. Based on the distribution chart, Virscend Education Co ranks #94 out of 256 companies in the Education industry, which is above the industry midpoint. Overall, Virscend Education Co has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Virscend Education Co's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Virscend Education Co ranks #94 out of 256 companies for Operating Margin %. This puts Virscend Education Co in the upper half of its industry. The industry median Operating Margin % is 10.05. Virscend Education Co's value of 18.28% is 82% above this benchmark. While the company's 10-year median is 25.15 vs. the industry median of 10.05, Virscend Education 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 an Education company?
The median Operating Margin % among Education companies is 10.05, based on 256 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. Virscend Education Co's current Operating Margin % of 18.28% is 82% 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 Virscend Education Co and its competitors. For the Education industry, the median Operating Margin % is 10.05 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Virscend Education Co's current Operating Margin % is 18.28%, which is 27% below median its own 10-year median of 25.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Virscend Education Co stock overvalued right now?
Based on GuruFocus' analysis, Virscend Education Co (HKSE:01565) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.24, compared to a current price of HK$0.19 — trading 19.2% below its estimated fair value. The current Operating Margin % is 18.28%, which is 27% below median its 10-year median of 25.15 and 82% above the Education industry median of 10.05. Virscend Education Co's overall GF Score™ is 57/100 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 Virscend Education Co (HKSE:01565), the current Operating Margin % is 18.28% as of Feb. 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 Virscend Education Co (HKSE:01565) Overvalued in 2026?
Based on GuruFocus' analysis, Virscend Education Co stock appears to be undervalued.
The current stock price of HK$0.19 is trading 19.2% below its estimated GF Value™ of HK$0.24.
GuruFocus considers Virscend Education Co to be Modestly Undervalued.
Key valuation signals for HKSE:01565:
Operating Margin %: 18.28% (27% below median its 10-year median of 25.15)
GF Value™: HK$0.24 vs. price of HK$0.19 (19.2% below fair value)
Industry Position: 82% above the Education median (#94 of 256)
No single metric tells the full story. See the HKSE:01565 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Virscend Education Co Ltd is a provider of K-12 private education services. The company is a provider of high school and university private education services in Southwest China. The firm's formal education industry consists of education for pre-school, primary, middle, and high school students with a total of over 16-second foreign language-based classes to its students, which include German, French, and Japanese, among other languages. The majority of the company's revenues are generated through tuition fees.
57GF Score
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