Echo International Holdings Group Ltd has never been profitable in the past 3 years. It lost money every year.
Echo International Holdings Group (HKSE:08218) 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.
Echo International Holdings Group Operating Margin % Related Terms
Echo International Holdings Group 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.
Echo International Holdings Group Operating Margin % Chart
HKSE:08218 vs COHR, KEYS, GRMN: Operating Margin % Comparison
For the Scientific & Technical Instruments subindustry, Echo International Holdings 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.
Echo International Holdings Group Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Echo International Holdings Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Echo International Holdings Group's Operating Margin % falls into.
Echo International Holdings 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.
* 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.
Echo International Holdings Group (HKSE:08218) has a Operating Margin % of -29.24% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Echo International Holdings Group and its competitors. According to the industry distribution chart, Echo International Holdings Group ranks #2186 out of 2476 companies in the Hardware industry, placing it in the top 88.3%.
Is Echo International Holdings Group's Operating Margin % too high?
Echo International Holdings Group's current Operating Margin % is -29.24%. Based on the distribution chart, Echo International Holdings Group ranks #2186 out of 2476 companies in the Hardware industry, which is in the bottom quartile relative to peers. Overall, Echo International Holdings Group has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Echo International Holdings Group's Operating Margin % compare to COHR and KEYS?
According to the Hardware industry distribution chart, Echo International Holdings Group ranks #2186 out of 2476 companies for Operating Margin %. This places Echo International Holdings Group in the lower half of its industry. The industry median Operating Margin % is 3.81. 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,476 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 Echo International Holdings Group and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Echo International Holdings Group's current Operating Margin % is -29.24%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Echo International Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Echo International Holdings Group (HKSE:08218) is currently considered Significantly Overvalued. The stock's GF Value™ is HK$0.07, compared to a current price of HK$0.11 — trading 57.1% above its estimated fair value. The current Operating Margin % is -29.24%. Echo International Holdings Group's overall GF Score™ is 40/100 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 Echo International Holdings Group (HKSE:08218), the current Operating Margin % is -29.24% as of Sep. 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 Echo International Holdings Group (HKSE:08218) Overvalued in 2026?
Based on GuruFocus' analysis, Echo International Holdings Group stock appears to be overvalued.
The current stock price of HK$0.11 is trading 57.1% above its estimated GF Value™ of HK$0.07.
GuruFocus considers Echo International Holdings Group to be Significantly Overvalued.
Key valuation signals for HKSE:08218:
Operating Margin %: -29.24%
GF Value™: HK$0.07 vs. price of HK$0.11 (57.1% above fair value)
No single metric tells the full story. See the HKSE:08218 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Echo International Holdings Group Business Description
Echo International Holdings Group Ltd is an investment holding company. Its operating segments include trading of electronic products, manufacturing and trading of electronic products and accessories, provision of food catering services, and trading of timepieces. The company generates the majority of its revenue from the sale of electronic products and accessories. The Group also provides one-stop complete electronic product manufacturing and assembly services, including products such as security alarms, buzzers, fire alarms, massage toners, fishing indicators, and communicators. It operates in Hong Kong, Asian countries, European countries, North and South America, Australia, and other regions, with the majority of revenue derived from European countries.
40GF 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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