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Henan Jinma Energy Co (HKSE:06885) 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.
Henan Jinma Energy Co Operating Margin % Related Terms
Henan Jinma Energy Co Operating Margin % Historical Data
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The historical data trend for Henan Jinma Energy Co'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:06885 vs HCC, AMR, SXC: Operating Margin % Comparison
For the Coking Coal subindustry, Henan Jinma Energy Co'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.
Henan Jinma Energy Co Operating Margin % vs Steel Industry
For the Steel industry and Basic Materials sector, Henan Jinma Energy Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Henan Jinma Energy Co's Operating Margin % falls into.
Henan Jinma Energy Co 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.
Henan Jinma Energy Co'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.
Henan Jinma Energy Co (HKSE:06885) has a Operating Margin % of -11.15% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Henan Jinma Energy Co and its competitors. According to the industry distribution chart, Henan Jinma Energy Co ranks #547 out of 611 companies in the Steel industry, placing it in the top 89.5%.
Is Henan Jinma Energy Co's Operating Margin % too high?
Henan Jinma Energy Co's current Operating Margin % is -11.15%. Based on the distribution chart, Henan Jinma Energy Co ranks #547 out of 611 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Henan Jinma Energy Co has a GF Score™ of 50/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Henan Jinma Energy Co's Operating Margin % compare to HCC and AMR?
According to the Steel industry distribution chart, Henan Jinma Energy Co ranks #547 out of 611 companies for Operating Margin %. This places Henan Jinma Energy Co in the lower half of its industry. The industry median Operating Margin % is 3.46. 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 Steel company?
The median Operating Margin % among Steel companies is 3.46, based on 611 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. 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 Henan Jinma Energy Co and its competitors. For the Steel industry, the median Operating Margin % is 3.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Henan Jinma Energy Co's current Operating Margin % is -11.15%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Henan Jinma Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Henan Jinma Energy Co (HKSE:06885) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$0.77, compared to a current price of HK$0.62 — trading 19.5% below its estimated fair value. The current Operating Margin % is -11.15%. Henan Jinma Energy Co's overall GF Score™ is 50/100 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 Henan Jinma Energy Co (HKSE:06885), the current Operating Margin % is -11.15% 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 Henan Jinma Energy Co (HKSE:06885) Overvalued in 2026?
Based on GuruFocus' analysis, Henan Jinma Energy Co stock appears to be undervalued.
The current stock price of HK$0.62 is trading 19.5% below its estimated GF Value™ of HK$0.77.
GuruFocus considers Henan Jinma Energy Co to be Modestly Undervalued.
Key valuation signals for HKSE:06885:
Operating Margin %: -11.15%
GF Value™: HK$0.77 vs. price of HK$0.62 (19.5% below fair value)
No single metric tells the full story. See the HKSE:06885 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Henan Jinma Energy Co Ltd operates as a coke producer and processor of coking by-products in the coking chemical industry in Henan province, China. It operates through the following business segments: Coke, Refined chemicals, Energy products, and Trading. Maximum revenue is generated from the Coke segment, which is engaged in the production and sale of coke. The Refined chemicals segment is engaged in the processing and sale of coking by-products into a series of benzene-based and coal tar-based refined chemicals; the Energy products segment deals with processing oven crude gas into coal gas, extraction of LNG from coal gas and sale of coal gas and LNG, in addition, hydrogen is also extracted from coal gas for sale; and the Trading segment trades coal, coke, hydrogen and LNG.
50GF Score
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