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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.
Chuanglian Holdings Operating Margin % Related Terms
Chuanglian Holdings Operating Margin % Historical Data
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The historical data trend for Chuanglian 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:02371 vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, Chuanglian 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.
Chuanglian Holdings Operating Margin % vs Education Industry
For the Education industry and Consumer Defensive sector, Chuanglian Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chuanglian Holdings'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.
Chuanglian Holdings's Operating Margin % for the fiscal year that ended in Jun. 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.
Chuanglian Holdings (HKSE:02371) has a Operating Margin % of 2.03% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Chuanglian Holdings and its competitors. According to the industry distribution chart, Chuanglian Holdings ranks #204 out of 257 companies in the Education industry, placing it in the top 79.4%.
Is Chuanglian Holdings' Operating Margin % too high?
Chuanglian Holdings' current Operating Margin % is 2.03%. The Education industry median Operating Margin % is 9.68. Chuanglian Holdings' value of 2.03% is 79% below this industry median. Based on the distribution chart, Chuanglian Holdings ranks #204 out of 257 companies in the Education industry, which is in the bottom quartile relative to peers. Overall, Chuanglian Holdings has a GF Score™ of 43/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chuanglian Holdings' Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, Chuanglian Holdings ranks #204 out of 257 companies for Operating Margin %. This places Chuanglian Holdings in the lower half of its industry. The industry median Operating Margin % is 9.68. Chuanglian Holdings' value of 2.03% is 79% below this benchmark. 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 9.68, 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. Chuanglian Holdings's current Operating Margin % of 2.03% is 79% below 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 Chuanglian Holdings and its competitors. For the Education industry, the median Operating Margin % is 9.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chuanglian Holdings's current Operating Margin % is 2.03%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chuanglian Holdings stock overvalued right now?
Based on GuruFocus' analysis, Chuanglian Holdings (HKSE:02371) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.42, compared to a current price of HK$0.19 — trading 53.8% below its estimated fair value. The current Operating Margin % is 2.03% and 79% below the Education industry median of 9.68. Chuanglian Holdings' overall GF Score™ is 43/100 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 Chuanglian Holdings (HKSE:02371), the current Operating Margin % is 2.03% 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 Chuanglian Holdings (HKSE:02371) Overvalued in 2026?
Based on GuruFocus' analysis, Chuanglian Holdings stock appears to be undervalued.
The current stock price of HK$0.19 is trading 53.8% below its estimated GF Value™ of HK$0.42.
GuruFocus considers Chuanglian Holdings to be Possible Value Trap.
Key valuation signals for HKSE:02371:
Operating Margin %: 2.03%
GF Value™: HK$0.42 vs. price of HK$0.19 (53.8% below fair value)
Industry Position: 79% below the Education median (#204 of 257)
No single metric tells the full story. See the HKSE:02371 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chuanglian Holdings Ltd is an investment holding company. Along with its subsidiaries, it operates in the following reportable segments; Securities trading, Educational consultancy and online training and education, and Financial services. Maximum revenue is derived from its Financial services segment which provides insurance brokerage services, money lending services, investment advisory services, and finance leasing services. The Securities trading segment is engaged in trading financial assets at fair value through profit or loss; and the Education segment provides educational consultancy, online training, education, and on-site training services. Geographically, it derives key revenue from the People's Republic of China and rest from Hong Kong and other regions.
43GF Score
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