Longfor Group Holdings (OTCPK:LNGPF) 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.
Longfor Group Holdings Operating Margin % Related Terms
Longfor Group Holdings Operating Margin % Historical Data
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The historical data trend for Longfor Group 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.
Longfor Group Holdings Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, Longfor Group 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.
Longfor Group Holdings Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Longfor Group Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Longfor Group Holdings's Operating Margin % falls into.
Longfor Group Holdings 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.
Longfor Group 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.
Longfor Group Holdings (LNGPF) has a Operating Margin % of -3.26% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Longfor Group Holdings and its competitors. Over the past decade, Longfor Group Holdings' Operating Margin % has ranged from 3.01 to 27.07. According to the industry distribution chart, Longfor Group Holdings ranks #1226 out of 1745 companies in the Real Estate industry, placing it in the top 70.3%.
Is Longfor Group Holdings' Operating Margin % too high?
Longfor Group Holdings' current Operating Margin % is -3.26%. Over the past 10 years, this metric has ranged from a low of 3.01 to a high of 27.07. Based on the distribution chart, Longfor Group Holdings ranks #1226 out of 1745 companies in the Real Estate industry, which is below the industry midpoint. Overall, Longfor Group Holdings has a GF Score™ of 70/100, reflecting its overall financial health beyond just this single metric.
How does Longfor Group Holdings' Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Longfor Group Holdings ranks #1226 out of 1745 companies for Operating Margin %. This places Longfor Group Holdings in the lower half of its industry. The industry median Operating Margin % is 13.21. Historically, Longfor Group Holdings' own Operating Margin % has ranged from 3.01 to 27.07 over the past decade. 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.21, based on 1,745 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 Longfor Group Holdings and its competitors. For the Real Estate industry, the median Operating Margin % is 13.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Longfor Group Holdings's current Operating Margin % is -3.26%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Longfor Group Holdings stock overvalued right now?
Longfor Group Holdings (LNGPF) has a current Operating Margin % of -3.26%. The stock's GF Value™ is $1.40, compared to a current price of $1.35 — trading 3.6% below its estimated fair value. The current Operating Margin % is -3.26%. Longfor Group Holdings' overall GF Score™ is 70/100 with 8 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 Longfor Group Holdings (LNGPF), the current Operating Margin % is -3.26% 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 Longfor Group Holdings (LNGPF) Overvalued in 2026?
Based on GuruFocus' analysis, Longfor Group Holdings stock appears to be undervalued.
The current stock price of $1.35 is trading 3.6% below its estimated GF Value™ of $1.40.
Key valuation signals for LNGPF:
Operating Margin %: -3.26%
GF Value™: $1.40 vs. price of $1.35 (3.6% below fair value)
No single metric tells the full story. See the LNGPF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Longfor Group Holdings, or Longfor, is a non-state-owned real estate developer in China with contracted sales value placing it among the top 10 of all China's developers. The company focuses on developing high quality residential projects, as well as operating shopping malls and rental apartments in China's wealthier cities. Property development represents the majority of Longfor's revenue and gross profit, while income from commercial properties, property management and project management services have been growing fast. As at end-2025, Wu Yajun remained the largest shareholder with an over 43% equity interest, while her ex-husband Cai Kui has a 23% stake.
70GF Score
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