Precision Tsugami (China)HKSE:01651 +7.86%84 Operating Margin % is 32.44% as of Mar. 2026, which is 66% above its 10-year median of 19.49. GuruFocus rates HKSE:01651 with a GF Score™ of 84/100 and a GF Value™ of HK$19.80 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 3,027 Industrial Products companies, Precision Tsugami (China) ranks better than 97.85% on this metric.
Precision Tsugami (China) Corp Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Precision Tsugami (China)'s Operating Margin % or its related term are showing as below:
HKSE:01651'
s Operating Margin % Range Over the Past 10 Years
Min: 10.75 Med: 19.49 Max: 29.95
Current: 29.95
HKSE:01651's Operating Margin % is ranked better than 97.85% of 3027
companies
in the Industrial Products industry
Industry Median: 6.53
vs HKSE:01651: 29.95
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.
Precision Tsugami (China) Operating Margin % Related Terms
Precision Tsugami (China) 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:01651 vs SNA, RBC, LECO: Operating Margin % Comparison
For the Tools & Accessories subindustry, Precision Tsugami (China)'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.
Precision Tsugami (China) Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Precision Tsugami (China)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where Precision Tsugami (China)'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.
Precision Tsugami (China)'s Operating Margin % for the fiscal year that ended in Mar. 2026 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.
Precision Tsugami (China) (HKSE:01651) has a Operating Margin % of 32.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Precision Tsugami (China) and its competitors. This is 66% above median its historical median of 19.49. Over the past decade, Precision Tsugami (China)'s Operating Margin % has ranged from 10.75 to 29.95. According to the industry distribution chart, Precision Tsugami (China) ranks #65 out of 3027 companies in the Industrial Products industry, placing it in the top 2.1%.
Is Precision Tsugami (China)'s Operating Margin % too high?
Precision Tsugami (China)'s current Operating Margin % of 32.44% is 66% above median its 10-year median of 19.49. Over the past 10 years, this metric has ranged from a low of 10.75 to a high of 29.95. The Industrial Products industry median Operating Margin % is 6.53. Precision Tsugami (China)'s value of 32.44% is 396.8% above this industry median. Based on the distribution chart, Precision Tsugami (China) ranks #65 out of 3027 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Precision Tsugami (China) has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precision Tsugami (China)'s Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Precision Tsugami (China) ranks #65 out of 3027 companies for Operating Margin %. This places Precision Tsugami (China) in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Precision Tsugami (China)'s value of 32.44% is 396.8% above this benchmark. Historically, Precision Tsugami (China)'s own Operating Margin % has ranged from 10.75 to 29.95 over the past decade. While the company's 10-year median is 19.49 vs. the industry median of 6.53, Precision Tsugami (China) 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,027 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. Precision Tsugami (China)'s current Operating Margin % of 32.44% is 396.8% 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 Precision Tsugami (China) and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precision Tsugami (China)'s current Operating Margin % is 32.44%, which is 66% above median its own 10-year median of 19.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precision Tsugami (China) stock overvalued right now?
Based on GuruFocus' analysis, Precision Tsugami (China) (HKSE:01651) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$19.80, compared to a current price of HK$72.70 — trading 267.2% above its estimated fair value. The current Operating Margin % is 32.44%, which is 66% above median its 10-year median of 19.49 and 396.8% above the Industrial Products industry median of 6.53. Precision Tsugami (China)'s overall GF Score™ is 84/100 with 5 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 Precision Tsugami (China) (HKSE:01651), the current Operating Margin % is 32.44% 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 Precision Tsugami (China) (HKSE:01651) Overvalued in 2026?
Based on GuruFocus' analysis, Precision Tsugami (China) stock appears to be overvalued.
The current stock price of HK$72.70 is trading 267.2% above its estimated GF Value™ of HK$19.80.
GuruFocus considers Precision Tsugami (China) to be Significantly Overvalued.
Key valuation signals for HKSE:01651:
Operating Margin %: 32.44% (66% above median its 10-year median of 19.49)
GF Value™: HK$19.80 vs. price of HK$72.70 (267.2% above fair value)
Industry Position: 396.8% above the Industrial Products median (#65 of 3027)
No single metric tells the full story. See the HKSE:01651 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precision Tsugami (China) Corp Ltd is engaged in the manufacturing and distribution of computer numerical control (CNC) high precision machine tools; and the provision of commercial consultation services. It manufactures and sells CNC machine tools including Precision lathes, Precision machining centers, Precision thread and form rolling machines and Precision grinding machines under the TSUGAMI brand. The company only has one reportable operating segment which is the manufacture and sale of high precision CNC machine tools. Its products are mainly for the Chinese market and are also sold to Japan, Europe, the USA, Southeast Asia and other countries.
84GF Score
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