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South China Vocational Education Group Co (HKSE:06913) 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.
South China Vocational Education Group Co Operating Margin % Related Terms
South China Vocational Education Group Co 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.
South China Vocational Education Group Co Operating Margin % Chart
South China Vocational Education Group Co Annual Data
HKSE:06913 vs EDU, TAL, LAUR: Operating Margin % Comparison
For the Education & Training Services subindustry, South China Vocational Education Group 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.
South China Vocational Education Group Co Operating Margin % vs Education Industry
South China Vocational Education Group 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.
* 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.
South China Vocational Education Group Co (HKSE:06913) has a Operating Margin % of 11.21% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on South China Vocational Education Group Co and its competitors. This is 45% below median its historical median of 20.46. Over the past decade, South China Vocational Education Group Co's Operating Margin % has ranged from 9.81 to 29.25. According to the industry distribution chart, South China Vocational Education Group Co ranks #98 out of 256 companies in the Education industry, placing it in the top 38.3%.
Is South China Vocational Education Group Co's Operating Margin % too high?
South China Vocational Education Group Co's current Operating Margin % of 11.21% is 45% below median its 10-year median of 20.46. Over the past 10 years, this metric has ranged from a low of 9.81 to a high of 29.25. The Education industry median Operating Margin % is 9.85. South China Vocational Education Group Co's value of 11.21% is 13.8% above this industry median. Based on the distribution chart, South China Vocational Education Group Co ranks #98 out of 256 companies in the Education industry, which is above the industry midpoint. Overall, South China Vocational Education Group Co has a GF Score™ of 60/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does South China Vocational Education Group Co's Operating Margin % compare to EDU and TAL?
According to the Education industry distribution chart, South China Vocational Education Group Co ranks #98 out of 256 companies for Operating Margin %. This puts South China Vocational Education Group Co in the upper half of its industry. The industry median Operating Margin % is 9.85. South China Vocational Education Group Co's value of 11.21% is 13.8% above this benchmark. Historically, South China Vocational Education Group Co's own Operating Margin % has ranged from 9.81 to 29.25 over the past decade. While the company's 10-year median is 20.46 vs. the industry median of 9.85, South China Vocational Education Group Co 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 9.85, 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. South China Vocational Education Group Co's current Operating Margin % of 11.21% is 13.8% 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 South China Vocational Education Group Co and its competitors. For the Education industry, the median Operating Margin % is 9.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. South China Vocational Education Group Co's current Operating Margin % is 11.21%, which is 45% below median its own 10-year median of 20.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is South China Vocational Education Group Co stock overvalued right now?
Based on GuruFocus' analysis, South China Vocational Education Group Co (HKSE:06913) is currently considered Possible Value Trap. The stock's GF Value™ is HK$0.48, compared to a current price of HK$0.13 — trading 72.9% below its estimated fair value. The current Operating Margin % is 11.21%, which is 45% below median its 10-year median of 20.46 and 13.8% above the Education industry median of 9.85. South China Vocational Education Group Co's overall GF Score™ is 60/100 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 South China Vocational Education Group Co (HKSE:06913), the current Operating Margin % is 11.21% 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 South China Vocational Education Group Co (HKSE:06913) Overvalued in 2026?
Based on GuruFocus' analysis, South China Vocational Education Group Co stock appears to be undervalued.
The current stock price of HK$0.13 is trading 72.9% below its estimated GF Value™ of HK$0.48.
GuruFocus considers South China Vocational Education Group Co to be Possible Value Trap.
Key valuation signals for HKSE:06913:
Operating Margin %: 11.21% (45% below median its 10-year median of 20.46)
GF Value™: HK$0.48 vs. price of HK$0.13 (72.9% below fair value)
Industry Position: 13.8% above the Education median (#98 of 256)
No single metric tells the full story. See the HKSE:06913 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
South China Vocational Education Group Co Ltd is an investment holding company. Along with its subsidiaries, it is engaged in providing private higher vocational education in the People's Republic of China (PRC). The Group's two core schools, Lingnan Vocational and Technical College and Lingnan Modern Technician College in Guangzhou and Qingyuan, offer several majors, covering TMT industries such as Internet, e-commerce, telecommunications, software, and animation, as well as emerging industries such as the health industry.
60GF Score
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