Li Ning CoLNNGY +0.38%92 Operating Margin % is 10.14% as of Dec. 2025, which is 20% below its 10-year median of 12.73. GuruFocus rates LNNGY with a GF Score™ of 92/100 and a GF Value™ of $66.53 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 844 Travel & Leisure companies, Li Ning Co ranks better than 64.69% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Li Ning Co's Operating Income for the
six
months ended in Dec. 2025 was $213 Mil. Li Ning Co's Revenue for the
six
months ended in Dec. 2025 was $2,099 Mil. Therefore, Li Ning Co's Operating Margin % for the quarter that ended in Dec. 2025 was 10.14%.
Warning Sign:
Li Ning Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.3%.
The historical rank and industry rank for Li Ning Co's Operating Margin % or its related term are showing as below:
LNNGY'
s Operating Margin % Range Over the Past 10 Years
Min: 4.56 Med: 12.73 Max: 21.8
Current: 13.33
LNNGY's Operating Margin % is ranked better than 64.69% of 844
companies
in the Travel & Leisure industry
Industry Median: 8.135
vs LNNGY: 13.33
Li Ning Co's 5-Year Average Operating Margin % Growth Rate was -6.30% per year.
Li Ning Co's Operating Income for the
six
months ended in Dec. 2025 was $213 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was $554 Mil.
Li Ning Co (OTCPK:LNNGY) 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.
Li Ning Co Operating Margin % Related Terms
Li Ning Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Li Ning 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.
LNNGY vs AS, HAS, LTH: Operating Margin % Comparison
For the Leisure subindustry, Li Ning 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.
Li Ning Co Operating Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Li Ning Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Li Ning Co'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.
Li Ning 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.
Li Ning Co (LNNGY) has a Operating Margin % of 10.14% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Li Ning Co and its competitors. This is 20% below median its historical median of 12.73. Over the past decade, Li Ning Co's Operating Margin % has ranged from 4.56 to 21.80. According to the industry distribution chart, Li Ning Co ranks #298 out of 844 companies in the Travel & Leisure industry, placing it in the top 35.3%.
Is Li Ning Co's Operating Margin % too high?
Li Ning Co's current Operating Margin % of 10.14% is 20% below median its 10-year median of 12.73. Over the past 10 years, this metric has ranged from a low of 4.56 to a high of 21.80. The Travel & Leisure industry median Operating Margin % is 8.14. Li Ning Co's value of 10.14% is 24.6% above this industry median. Based on the distribution chart, Li Ning Co ranks #298 out of 844 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Li Ning Co has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Li Ning Co's Operating Margin % compare to AS and HAS?
According to the Travel & Leisure industry distribution chart, Li Ning Co ranks #298 out of 844 companies for Operating Margin %. This puts Li Ning Co in the upper half of its industry. The industry median Operating Margin % is 8.14. Li Ning Co's value of 10.14% is 24.6% above this benchmark. Historically, Li Ning Co's own Operating Margin % has ranged from 4.56 to 21.80 over the past decade. While the company's 10-year median is 12.73 vs. the industry median of 8.14, Li Ning 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 a Travel & Leisure company?
The median Operating Margin % among Travel & Leisure companies is 8.14, based on 844 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. Li Ning Co's current Operating Margin % of 10.14% is 24.6% 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 Li Ning Co and its competitors. For the Travel & Leisure industry, the median Operating Margin % is 8.14 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Li Ning Co's current Operating Margin % is 10.14%, which is 20% below median its own 10-year median of 12.73. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Li Ning Co stock overvalued right now?
Based on GuruFocus' analysis, Li Ning Co (LNNGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $66.53, compared to a current price of $47.94 — trading 27.9% below its estimated fair value. The current Operating Margin % is 10.14%, which is 20% below median its 10-year median of 12.73 and 24.6% above the Travel & Leisure industry median of 8.14. Li Ning Co's overall GF Score™ is 92/100 with 3 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 Li Ning Co (LNNGY), the current Operating Margin % is 10.14% 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 Li Ning Co (LNNGY) Overvalued in 2026?
Based on GuruFocus' analysis, Li Ning Co stock appears to be undervalued.
The current stock price of $47.94 is trading 27.9% below its estimated GF Value™ of $66.53.
GuruFocus considers Li Ning Co to be Modestly Undervalued.
Key valuation signals for LNNGY:
Operating Margin %: 10.14% (20% below median its 10-year median of 12.73)
GF Value™: $66.53 vs. price of $47.94 (27.9% below fair value)
Industry Position: 24.6% above the Travel & Leisure median (#298 of 844)
No single metric tells the full story. See the LNNGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Established in 1989, Li Ning is one of the largest sportswear companies in China. Headquartered in Beijing, Li Ning mainly sells professional and leisure footwear and apparel under the Li Ning brand. Despite having a single-brand strategy, Li Ning launched multiple sub-brands (such as China Li Ning and Li Ning 1990) to appeal to different demographics. As of the end of 2024, the company had 7,585 stores in China, of which 1,297 were directly operated, and the rest franchised.
92GF Score
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