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China Graphite GroupHKSE:02237 54 Operating Margin % is 13.80% as of Dec. 2025, which is 46% below its 10-year median of 25.69. GuruFocus rates HKSE:02237 with a GF Score™ of 54/100 and a GF Value™ of HK$0.33 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 843 Metals & Mining companies, China Graphite Group ranks worse than 61.57% on this metric.
China Graphite Group (HKSE:02237) 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 Graphite Group Operating Margin % Related Terms
China Graphite Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for China Graphite Group'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.
China Graphite Group Operating Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, China Graphite 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 Graphite Group Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, China Graphite Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Graphite Group's Operating Margin % falls into.
China Graphite 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.
China Graphite Group'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.
China Graphite Group (HKSE:02237) has a Operating Margin % of 13.80% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Graphite Group and its competitors. This is 46% below median its historical median of 25.69. According to the industry distribution chart, China Graphite Group ranks #519 out of 843 companies in the Metals & Mining industry, placing it in the top 61.6%.
Is China Graphite Group's Operating Margin % too high?
China Graphite Group's current Operating Margin % of 13.80% is 46% below median its 10-year median of 25.69. The Metals & Mining industry median Operating Margin % is 6.25. China Graphite Group's value of 13.80% is 120.8% above this industry median. Based on the distribution chart, China Graphite Group ranks #519 out of 843 companies in the Metals & Mining industry, which is below the industry midpoint. Overall, China Graphite Group has a GF Score™ of 54/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does China Graphite Group's Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, China Graphite Group ranks #519 out of 843 companies for Operating Margin %. This places China Graphite Group in the lower half of its industry. The industry median Operating Margin % is 6.25. China Graphite Group's value of 13.80% is 120.8% above this benchmark. While the company's 10-year median is 25.69 vs. the industry median of 6.25, China Graphite 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 a Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 6.25, based on 843 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 Graphite Group's current Operating Margin % of 13.80% is 120.8% 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 China Graphite Group and its competitors. For the Metals & Mining industry, the median Operating Margin % is 6.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Graphite Group's current Operating Margin % is 13.80%, which is 46% below median its own 10-year median of 25.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Graphite Group stock overvalued right now?
Based on GuruFocus' analysis, China Graphite Group (HKSE:02237) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.33, compared to a current price of HK$0.21 — trading 37.9% below its estimated fair value. The current Operating Margin % is 13.80%, which is 46% below median its 10-year median of 25.69 and 120.8% above the Metals & Mining industry median of 6.25. China Graphite Group's overall GF Score™ is 54/100 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 China Graphite Group (HKSE:02237), the current Operating Margin % is 13.80% 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 China Graphite Group (HKSE:02237) Overvalued in 2026?
Based on GuruFocus' analysis, China Graphite Group stock appears to be undervalued.
The current stock price of HK$0.21 is trading 37.9% below its estimated GF Value™ of HK$0.33.
GuruFocus considers China Graphite Group to be Possible Value Trap.
Key valuation signals for HKSE:02237:
Operating Margin %: 13.80% (46% below median its 10-year median of 25.69)
GF Value™: HK$0.33 vs. price of HK$0.21 (37.9% below fair value)
Industry Position: 120.8% above the Metals & Mining median (#519 of 843)
No single metric tells the full story. See the HKSE:02237 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Graphite Group Ltd is engaged in the manufacturing and sale of graphite products, focusing on the production and sale of flake graphite concentrate and spherical graphite in the PRC. The company operates through reportable segments comprising the sale of flake graphite concentrate, which generates the majority of its revenue, and the sale of spherical graphite and its by-products, along with unprocessed marble.
54GF Score
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