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Cathay Group HoldingsHKSE:01981 73 Operating Margin % is 44.52% as of Dec. 2025, which is 36% above its 10-year median of 32.71. GuruFocus rates HKSE:01981 with a GF Score™ of 73/100 and a GF Value™ of HK$1.48 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 257 Education companies, Cathay Group Holdings ranks better than 92.61% on this metric.
Cathay Group Holdings (HKSE:01981) 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.
Cathay Group Holdings Operating Margin % Related Terms
Cathay Group Holdings Operating Margin % Historical Data
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The historical data trend for Cathay Group 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:01981 vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, Cathay Group 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.
Cathay Group Holdings Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Cathay Group Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cathay Group Holdings's Operating Margin % falls into.
Cathay Group Holdings 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.
Cathay Group 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.
Cathay Group Holdings (HKSE:01981) has a Operating Margin % of 44.52% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Cathay Group Holdings and its competitors. This is 36% above median its historical median of 32.71. Over the past decade, Cathay Group Holdings' Operating Margin % has ranged from 18.66 to 41.47. According to the industry distribution chart, Cathay Group Holdings ranks #19 out of 257 companies in the Education industry, placing it in the top 7.4%.
Is Cathay Group Holdings' Operating Margin % too high?
Cathay Group Holdings' current Operating Margin % of 44.52% is 36% above median its 10-year median of 32.71. Over the past 10 years, this metric has ranged from a low of 18.66 to a high of 41.47. The Education industry median Operating Margin % is 10.20. Cathay Group Holdings' value of 44.52% is 336.5% above this industry median. Based on the distribution chart, Cathay Group Holdings ranks #19 out of 257 companies in the Education industry, which is in the top quartile — a strong position relative to peers. Overall, Cathay Group Holdings has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cathay Group Holdings' Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Cathay Group Holdings ranks #19 out of 257 companies for Operating Margin %. This places Cathay Group Holdings in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 10.20. Cathay Group Holdings' value of 44.52% is 336.5% above this benchmark. Historically, Cathay Group Holdings' own Operating Margin % has ranged from 18.66 to 41.47 over the past decade. While the company's 10-year median is 32.71 vs. the industry median of 10.20, Cathay Group Holdings 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 10.20, based on 257 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. Cathay Group Holdings's current Operating Margin % of 44.52% is 336.5% 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 Cathay Group Holdings and its competitors. For the Education industry, the median Operating Margin % is 10.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Group Holdings's current Operating Margin % is 44.52%, which is 36% above median its own 10-year median of 32.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Cathay Group Holdings (HKSE:01981) is currently considered Significantly Undervalued. The stock's GF Value™ is HK$1.48, compared to a current price of HK$0.66 — trading 55.7% below its estimated fair value. The current Operating Margin % is 44.52%, which is 36% above median its 10-year median of 32.71 and 336.5% above the Education industry median of 10.20. Cathay Group Holdings' overall GF Score™ is 73/100 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 Cathay Group Holdings (HKSE:01981), the current Operating Margin % is 44.52% 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 Cathay Group Holdings (HKSE:01981) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Group Holdings stock appears to be undervalued.
The current stock price of HK$0.66 is trading 55.7% below its estimated GF Value™ of HK$1.48.
GuruFocus considers Cathay Group Holdings to be Significantly Undervalued.
Key valuation signals for HKSE:01981:
Operating Margin %: 44.52% (36% above median its 10-year median of 32.71)
GF Value™: HK$1.48 vs. price of HK$0.66 (55.7% below fair value)
Industry Position: 336.5% above the Education median (#19 of 257)
No single metric tells the full story. See the HKSE:01981 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Group Holdings Inc is an investment holding company. Along with its subsidiaries, the company is engaged in two reportable and operating segments, namely higher education (media and arts), vocational education and international education, which derives maximum revenue, and the entertainment and livestreaming e-commerce segment. Geographically, the group derives a majority of its revenue from Mainland China.
73GF Score
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