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STAR CM HoldingsHKSE:06698 -4.14%70 Operating Margin % is 30.32% as of Dec. 2025, which is 109% above its 10-year median of 14.54. GuruFocus rates HKSE:06698 with a GF Score™ of 70/100 and a GF Value™ of HK$1.81 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 1,009 Media - Diversified companies, STAR CM Holdings ranks better than 72.15% on this metric.
The historical rank and industry rank for STAR CM Holdings's Operating Margin % or its related term are showing as below:
HKSE:06698'
s Operating Margin % Range Over the Past 10 Years
Min: -46.57 Med: 14.54 Max: 26.88
Current: 8.94
HKSE:06698's Operating Margin % is ranked better than 72.15% of 1009
companies
in the Media - Diversified industry
Industry Median: 2.74
vs HKSE:06698: 8.94
STAR CM Holdings's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
STAR CM Holdings (HKSE:06698) 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.
STAR CM Holdings Operating Margin % Related Terms
STAR CM Holdings Operating Margin % Historical Data
* Premium members only.
The historical data trend for STAR CM 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:06698 vs NFLX, DIS, WBD: Operating Margin % Comparison
For the Entertainment subindustry, STAR CM 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.
STAR CM Holdings Operating Margin % vs Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, STAR CM Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where STAR CM 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.
STAR CM 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.
STAR CM Holdings (HKSE:06698) has a Operating Margin % of 30.32% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on STAR CM Holdings and its competitors. This is 109% above median its historical median of 14.54. According to the industry distribution chart, STAR CM Holdings ranks #281 out of 1009 companies in the Media - Diversified industry, placing it in the top 27.8%.
Is STAR CM Holdings' Operating Margin % too high?
STAR CM Holdings' current Operating Margin % of 30.32% is 109% above median its 10-year median of 14.54. The Media - Diversified industry median Operating Margin % is 2.74. STAR CM Holdings' value of 30.32% is 1006.6% above this industry median. Based on the distribution chart, STAR CM Holdings ranks #281 out of 1009 companies in the Media - Diversified industry, which is above the industry midpoint. Overall, STAR CM Holdings has a GF Score™ of 70/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does STAR CM Holdings' Operating Margin % compare to NFLX and DIS?
According to the Media - Diversified industry distribution chart, STAR CM Holdings ranks #281 out of 1009 companies for Operating Margin %. This puts STAR CM Holdings in the upper half of its industry. The industry median Operating Margin % is 2.74. STAR CM Holdings' value of 30.32% is 1006.6% above this benchmark. While the company's 10-year median is 14.54 vs. the industry median of 2.74, STAR CM 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 a Media - Diversified company?
The median Operating Margin % among Media - Diversified companies is 2.74, based on 1,009 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. STAR CM Holdings's current Operating Margin % of 30.32% is 1006.6% 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 STAR CM Holdings and its competitors. For the Media - Diversified industry, the median Operating Margin % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. STAR CM Holdings's current Operating Margin % is 30.32%, which is 109% above median its own 10-year median of 14.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is STAR CM Holdings stock overvalued right now?
Based on GuruFocus' analysis, STAR CM Holdings (HKSE:06698) is currently considered Possible Value Trap. The stock's GF Value™ is HK$1.81, compared to a current price of HK$0.81 — trading 55.2% below its estimated fair value. The current Operating Margin % is 30.32%, which is 109% above median its 10-year median of 14.54 and 1006.6% above the Media - Diversified industry median of 2.74. STAR CM Holdings' overall GF Score™ is 70/100 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 STAR CM Holdings (HKSE:06698), the current Operating Margin % is 30.32% 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 STAR CM Holdings (HKSE:06698) Overvalued in 2026?
Based on GuruFocus' analysis, STAR CM Holdings stock appears to be undervalued.
The current stock price of HK$0.81 is trading 55.2% below its estimated GF Value™ of HK$1.81.
GuruFocus considers STAR CM Holdings to be Possible Value Trap.
Key valuation signals for HKSE:06698:
Operating Margin %: 30.32% (109% above median its 10-year median of 14.54)
GF Value™: HK$1.81 vs. price of HK$0.81 (55.2% below fair value)
Industry Position: 1006.6% above the Media - Diversified median (#281 of 1009)
No single metric tells the full story. See the HKSE:06698 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
STAR CM Holdings Ltd is an investment holding company. The company's subsidiaries are principally involved in variety program intellectual property (IP) production, operation and licensing, music IP operation and licensing, drama series and film IP operation and licensing and other IP-related business. The company owns a diverse and wide range of popular variety show IPs, including music programs, dance programs, talent shows, talk shows, outdoor/cultural programs, and other variety shows. Geographically, the company derives the majority of revenue from Mainland China, followed by the USA, the United Kingdom, Japan, Hong Kong, Macau, and Other regions.
70GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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