Hua MedicineHUMDF 46 Operating Margin % is -27.01% as of Dec. 2025. GuruFocus rates HUMDF with a GF Score™ of 46/100 and a GF Value™ of $1.46 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 952 Drug Manufacturers companies, Hua Medicine ranks worse than 85.71% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Hua Medicine's Operating Income for the
six
months ended in Dec. 2025 was $-10.56 Mil. Hua Medicine's Revenue for the
six
months ended in Dec. 2025 was $39.12 Mil. Therefore, Hua Medicine's Operating Margin % for the quarter that ended in Dec. 2025 was -27.01%.
The historical rank and industry rank for Hua Medicine's Operating Margin % or its related term are showing as below:
HUMDF'
s Operating Margin % Range Over the Past 10 Years
Min: -1367.54 Med: -257.59 Max: -27.58
Current: -27.58
HUMDF's Operating Margin % is ranked worse than 85.71% of 952
companies
in the Drug Manufacturers industry
Industry Median: 7.58
vs HUMDF: -27.58
Hua Medicine's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Hua Medicine's Operating Income for the
six
months ended in Dec. 2025 was $-10.56 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $-19.14 Mil.
Warning Sign:
Hua Medicine has never been profitable in the past 3 years. It lost money every year.
Hua Medicine (OTCPK:HUMDF) 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.
Hua Medicine Operating Margin % Related Terms
Hua Medicine Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hua Medicine'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.
For the Drug Manufacturers - Specialty & Generic subindustry, Hua Medicine'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.
Hua Medicine Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Hua Medicine's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hua Medicine'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.
Hua Medicine'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.
Hua Medicine (HUMDF) has a Operating Margin % of -27.01% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Hua Medicine and its competitors. According to the industry distribution chart, Hua Medicine ranks #816 out of 952 companies in the Drug Manufacturers industry, placing it in the top 85.7%.
Is Hua Medicine's Operating Margin % too high?
Hua Medicine's current Operating Margin % is -27.01%. Based on the distribution chart, Hua Medicine ranks #816 out of 952 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Hua Medicine has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hua Medicine's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Hua Medicine ranks #816 out of 952 companies for Operating Margin %. This places Hua Medicine in the lower half of its industry. The industry median Operating Margin % is 7.58. 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.58, based on 952 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 Hua Medicine and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hua Medicine's current Operating Margin % is -27.01%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hua Medicine stock overvalued right now?
Based on GuruFocus' analysis, Hua Medicine (HUMDF) is currently considered Possible Value Trap. The stock's GF Value™ is $1.46, compared to a current price of $0.34 — trading 76.7% below its estimated fair value. The current Operating Margin % is -27.01%. Hua Medicine's overall GF Score™ is 46/100 with 6 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 Hua Medicine (HUMDF), the current Operating Margin % is -27.01% 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 Hua Medicine (HUMDF) Overvalued in 2026?
Based on GuruFocus' analysis, Hua Medicine stock appears to be undervalued.
The current stock price of $0.34 is trading 76.7% below its estimated GF Value™ of $1.46.
GuruFocus considers Hua Medicine to be Possible Value Trap.
Key valuation signals for HUMDF:
Operating Margin %: -27.01%
GF Value™: $1.46 vs. price of $0.34 (76.7% below fair value)
No single metric tells the full story. See the HUMDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hua Medicine is an investment holding company. It is engaged in the development and commercialization of a first-in-class oral drug, Dorzagliatin (HMS5552), for the treatment of Type 2 diabetes. Dorzagliatin is a first-in-class glucokinase activator, or GKA, designed to control the progressive degenerative nature of diabetes by restoring glucose homeostasis in Type 2 diabetes. The group majorly operates and generates the majority of its revenue from the PRC.
46GF 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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