ZTO Express (Cayman)LTS:0A33 +1.38%98 Operating Margin % is 18.78% as of Mar. 2026, which is 24% below its 10-year median of 24.66. GuruFocus rates LTS:0A33 with a GF Score™ of 98/100 and a GF Value™ of $27.94 (Modestly Undervalued). Among 1,007 Transportation companies, ZTO Express (Cayman) ranks better than 81.63% on this metric.
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.
ZTO Express (Cayman) Operating Margin % Related Terms
ZTO Express (Cayman) Operating Margin % Historical Data
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The historical data trend for ZTO Express (Cayman)'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.
LTS:0A33 vs EXPD, CHRW, FDXFw: Operating Margin % Comparison
For the Integrated Freight & Logistics subindustry, ZTO Express (Cayman)'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.
ZTO Express (Cayman) Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, ZTO Express (Cayman)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where ZTO Express (Cayman)'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.
ZTO Express (Cayman)'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.
ZTO Express (Cayman) (LTS:0A33) has a Operating Margin % of 18.78% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on ZTO Express (Cayman) and its competitors. This is 24% below median its historical median of 24.66. Over the past decade, ZTO Express (Cayman)'s Operating Margin % has ranged from 18.10 to 28.70. According to the industry distribution chart, ZTO Express (Cayman) ranks #185 out of 1007 companies in the Transportation industry, placing it in the top 18.4%.
Is ZTO Express (Cayman)'s Operating Margin % too high?
ZTO Express (Cayman)'s current Operating Margin % of 18.78% is 24% below median its 10-year median of 24.66. Over the past 10 years, this metric has ranged from a low of 18.10 to a high of 28.70. The Transportation industry median Operating Margin % is 7.36. ZTO Express (Cayman)'s value of 18.78% is 155.2% above this industry median. Based on the distribution chart, ZTO Express (Cayman) ranks #185 out of 1007 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, ZTO Express (Cayman) has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ZTO Express (Cayman)'s Operating Margin % compare to EXPD and CHRW?
According to the Transportation industry distribution chart, ZTO Express (Cayman) ranks #185 out of 1007 companies for Operating Margin %. This places ZTO Express (Cayman) in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.36. ZTO Express (Cayman)'s value of 18.78% is 155.2% above this benchmark. Historically, ZTO Express (Cayman)'s own Operating Margin % has ranged from 18.10 to 28.70 over the past decade. While the company's 10-year median is 24.66 vs. the industry median of 7.36, ZTO Express (Cayman) 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 Transportation company?
The median Operating Margin % among Transportation companies is 7.36, based on 1,007 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. ZTO Express (Cayman)'s current Operating Margin % of 18.78% is 155.2% 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 ZTO Express (Cayman) and its competitors. For the Transportation industry, the median Operating Margin % is 7.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ZTO Express (Cayman)'s current Operating Margin % is 18.78%, which is 24% below median its own 10-year median of 24.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ZTO Express (Cayman) stock overvalued right now?
Based on GuruFocus' analysis, ZTO Express (Cayman) (LTS:0A33) is currently considered Modestly Undervalued. The stock's GF Value™ is $27.94, compared to a current price of $21.98 — trading 21.3% below its estimated fair value. The current Operating Margin % is 18.78%, which is 24% below median its 10-year median of 24.66 and 155.2% above the Transportation industry median of 7.36. ZTO Express (Cayman)'s overall GF Score™ is 98/100. 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 ZTO Express (Cayman) (LTS:0A33), the current Operating Margin % is 18.78% as of Mar. 2026. 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 ZTO Express (Cayman) (LTS:0A33) Overvalued in 2026?
Based on GuruFocus' analysis, ZTO Express (Cayman) stock appears to be undervalued.
The current stock price of $21.98 is trading 21.3% below its estimated GF Value™ of $27.94.
GuruFocus considers ZTO Express (Cayman) to be Modestly Undervalued.
Key valuation signals for LTS:0A33:
Operating Margin %: 18.78% (24% below median its 10-year median of 24.66)
GF Value™: $27.94 vs. price of $21.98 (21.3% below fair value)
Industry Position: 155.2% above the Transportation median (#185 of 1007)
No single metric tells the full story. See the LTS:0A33 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ZTO Express is China's largest express delivery company by parcel volume, with a volume share of 19.4% in 2024. It operates a network partner model where it provides line-haul transportation and sorting services, while its local network partners provide first-mile pickup and last-mile delivery services under the ZTO brand name. Headquartered in Shanghai, the company was founded in 2002 by Meisong Lai, who remains chair, CEO, and its major shareholder with 78% voting rights as of March 31, 2025. ZTO's strategic shareholder is leading China e-commerce company Alibaba Group with around an 8.9% interest.
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