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China General Education Group (HKSE:02175) 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.
China General Education Group Operating Margin % Related Terms
China General Education Group 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.
China General Education Group Operating Margin % Chart
HKSE:02175 vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, China General Education Group'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.
China General Education Group Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, China General Education Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China General Education Group's Operating Margin % falls into.
China General Education Group 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.
China General Education Group (HKSE:02175) has a Operating Margin % of 23.57% as of Feb. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on China General Education Group and its competitors. This is 37% below median its historical median of 37.41. Over the past decade, China General Education Group's Operating Margin % has ranged from 20.70 to 50.95. According to the industry distribution chart, China General Education Group ranks #69 out of 256 companies in the Education industry, placing it in the top 27%.
Is China General Education Group's Operating Margin % too high?
China General Education Group's current Operating Margin % of 23.57% is 37% below median its 10-year median of 37.41. Over the past 10 years, this metric has ranged from a low of 20.70 to a high of 50.95. The Education industry median Operating Margin % is 10.05. China General Education Group's value of 23.57% is 134.6% above this industry median. Based on the distribution chart, China General Education Group ranks #69 out of 256 companies in the Education industry, which is above the industry midpoint. Overall, China General Education Group has a GF Score™ of 80/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China General Education Group's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, China General Education Group ranks #69 out of 256 companies for Operating Margin %. This puts China General Education Group in the upper half of its industry. The industry median Operating Margin % is 10.05. China General Education Group's value of 23.57% is 134.6% above this benchmark. Historically, China General Education Group's own Operating Margin % has ranged from 20.70 to 50.95 over the past decade. While the company's 10-year median is 37.41 vs. the industry median of 10.05, China General Education Group 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. China General Education Group's current Operating Margin % of 23.57% is 134.6% 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 China General Education Group 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. China General Education Group's current Operating Margin % is 23.57%, which is 37% below median its own 10-year median of 37.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China General Education Group stock overvalued right now?
Based on GuruFocus' analysis, China General Education Group (HKSE:02175) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$3.20, compared to a current price of HK$2.32 — trading 27.5% below its estimated fair value. The current Operating Margin % is 23.57%, which is 37% below median its 10-year median of 37.41 and 134.6% above the Education industry median of 10.05. China General Education Group's overall GF Score™ is 80/100 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 China General Education Group (HKSE:02175), the current Operating Margin % is 23.57% 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 China General Education Group (HKSE:02175) Overvalued in 2026?
Based on GuruFocus' analysis, China General Education Group stock appears to be undervalued.
The current stock price of HK$2.32 is trading 27.5% below its estimated GF Value™ of HK$3.20.
GuruFocus considers China General Education Group to be Modestly Undervalued.
Key valuation signals for HKSE:02175:
Operating Margin %: 23.57% (37% below median its 10-year median of 37.41)
GF Value™: HK$3.20 vs. price of HK$2.32 (27.5% below fair value)
Industry Position: 134.6% above the Education median (#69 of 256)
No single metric tells the full story. See the HKSE:02175 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China General Education Group Ltd is principally engaged in the provision of higher education services. The company operates one college, Shanxi Technology and Business College, in which it offers bachelor's degree programs in a total of around 39 majors including three concentrations to undergraduate students including accounting, auditing, civil engineering, and business administration. The Company also focuses on providing applied courses and internship training opportunities. The Group generates maximum revenue from Mainland China.
80GF Score
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