Nine Dragons Paper (Holdings)NDGPY 73 Operating Margin % is 8.86% as of Dec. 2025, which is 22% below its 10-year median of 11.41. GuruFocus rates NDGPY with a GF Score™ of 73/100 and a GF Value™ of $12.54 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 283 Forest Products companies, Nine Dragons Paper (Holdings) ranks better than 80.57% on this metric.
Nine Dragons Paper (Holdings) Ltd has recorded a loss in operating income at least once over the past 3 years.
Nine Dragons Paper (Holdings) (OTCPK:NDGPY) 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.
Nine Dragons Paper (Holdings) Operating Margin % Related Terms
Nine Dragons Paper (Holdings) 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.
Nine Dragons Paper (Holdings) Operating Margin % Chart
Nine Dragons Paper (Holdings) Operating Margin % Competitor Comparison
For the Paper & Paper Products subindustry, Nine Dragons Paper (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.
Nine Dragons Paper (Holdings) Operating Margin % vs Forest Products Industry
For the Forest Products industry and Basic Materials sector, Nine Dragons Paper (Holdings)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where Nine Dragons Paper (Holdings)'s Operating Margin % falls into.
Nine Dragons Paper (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.
* 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.
Nine Dragons Paper (Holdings) (NDGPY) has a Operating Margin % of 8.86% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Nine Dragons Paper (Holdings) and its competitors. This is 22% below median its historical median of 11.41. According to the industry distribution chart, Nine Dragons Paper (Holdings) ranks #55 out of 283 companies in the Forest Products industry, placing it in the top 19.4%.
Is Nine Dragons Paper (Holdings)'s Operating Margin % too high?
Nine Dragons Paper (Holdings)'s current Operating Margin % of 8.86% is 22% below median its 10-year median of 11.41. The Forest Products industry median Operating Margin % is 2.60. Nine Dragons Paper (Holdings)'s value of 8.86% is 240.8% above this industry median. Based on the distribution chart, Nine Dragons Paper (Holdings) ranks #55 out of 283 companies in the Forest Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nine Dragons Paper (Holdings) has a GF Score™ of 73/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nine Dragons Paper (Holdings)'s Operating Margin % compare to competitors?
According to the Forest Products industry distribution chart, Nine Dragons Paper (Holdings) ranks #55 out of 283 companies for Operating Margin %. This places Nine Dragons Paper (Holdings) in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.60. Nine Dragons Paper (Holdings)'s value of 8.86% is 240.8% above this benchmark. While the company's 10-year median is 11.41 vs. the industry median of 2.60, Nine Dragons Paper (Holdings) 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 Forest Products company?
The median Operating Margin % among Forest Products companies is 2.60, based on 283 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. Nine Dragons Paper (Holdings)'s current Operating Margin % of 8.86% is 240.8% 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 Nine Dragons Paper (Holdings) and its competitors. For the Forest Products industry, the median Operating Margin % is 2.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nine Dragons Paper (Holdings)'s current Operating Margin % is 8.86%, which is 22% below median its own 10-year median of 11.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nine Dragons Paper (Holdings) stock overvalued right now?
Based on GuruFocus' analysis, Nine Dragons Paper (Holdings) (NDGPY) is currently considered Significantly Overvalued. The stock's GF Value™ is $12.54, compared to a current price of $16.75 — trading 33.6% above its estimated fair value. The current Operating Margin % is 8.86%, which is 22% below median its 10-year median of 11.41 and 240.8% above the Forest Products industry median of 2.60. Nine Dragons Paper (Holdings)'s overall GF Score™ is 73/100 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 Nine Dragons Paper (Holdings) (NDGPY), the current Operating Margin % is 8.86% 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 Nine Dragons Paper (Holdings) (NDGPY) Overvalued in 2026?
Based on GuruFocus' analysis, Nine Dragons Paper (Holdings) stock appears to be overvalued.
The current stock price of $16.75 is trading 33.6% above its estimated GF Value™ of $12.54.
GuruFocus considers Nine Dragons Paper (Holdings) to be Significantly Overvalued.
Key valuation signals for NDGPY:
Operating Margin %: 8.86% (22% below median its 10-year median of 11.41)
GF Value™: $12.54 vs. price of $16.75 (33.6% above fair value)
Industry Position: 240.8% above the Forest Products median (#55 of 283)
No single metric tells the full story. See the NDGPY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nine Dragons Paper (Holdings) Business Description
Nine Dragons Paper (Holdings) Ltd operates as a paper products manufacturer. The company is a pulp and paper manufacturing group specializing in the integrated production of pulp and paper, with main products including various kinds of environmentally friendly packaging paper, printing and writing paper, high-end virgin paper, and products from the entire upstream and downstream production chain. Covering the full industry spectrum, it offers kraftlinerboard, testlinerboard, white top linerboard, coated linerboard, bleached folding boxboard, high-performance corrugating medium, coated duplex board, gypsum board cover paper, and more.
73GF 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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