New World Development CoNWWDF 58 Operating Margin % is 33.78% as of Dec. 2025, which is 99% above its 10-year median of 16.98. GuruFocus rates NWWDF with a GF Score™ of 58/100 and a GF Value™ of $0.88. The stock has 6 warning signs investors should review. Among 1,745 Real Estate companies, New World Development Co ranks better than 67.11% on this metric.
New World Development Co (OTCPK:NWWDF) 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.
New World Development Co Operating Margin % Related Terms
New World Development Co 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.
New World Development Co Operating Margin % Competitor Comparison
For the Real Estate - Diversified subindustry, New World Development 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.
New World Development Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, New World Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where New World Development Co's Operating Margin % falls into.
New World Development Co 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.
New World Development Co's Operating Margin % for the fiscal year that ended in Jun. 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.
New World Development Co (NWWDF) has a Operating Margin % of 33.78% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on New World Development Co and its competitors. This is 99% above median its historical median of 16.98. Over the past decade, New World Development Co's Operating Margin % has ranged from 11.93 to 24.59. According to the industry distribution chart, New World Development Co ranks #574 out of 1745 companies in the Real Estate industry, placing it in the top 32.9%.
Is New World Development Co's Operating Margin % too high?
New World Development Co's current Operating Margin % of 33.78% is 99% above median its 10-year median of 16.98. Over the past 10 years, this metric has ranged from a low of 11.93 to a high of 24.59. The Real Estate industry median Operating Margin % is 13.23. New World Development Co's value of 33.78% is 155.3% above this industry median. Based on the distribution chart, New World Development Co ranks #574 out of 1745 companies in the Real Estate industry, which is above the industry midpoint. Overall, New World Development Co has a GF Score™ of 58/100, reflecting its overall financial health beyond just this single metric.
How does New World Development Co's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, New World Development Co ranks #574 out of 1745 companies for Operating Margin %. This puts New World Development Co in the upper half of its industry. The industry median Operating Margin % is 13.23. New World Development Co's value of 33.78% is 155.3% above this benchmark. Historically, New World Development Co's own Operating Margin % has ranged from 11.93 to 24.59 over the past decade. While the company's 10-year median is 16.98 vs. the industry median of 13.23, New World Development 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.23, 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. New World Development Co's current Operating Margin % of 33.78% is 155.3% 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 New World Development Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. New World Development Co's current Operating Margin % is 33.78%, which is 99% above median its own 10-year median of 16.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New World Development Co stock overvalued right now?
New World Development Co (NWWDF) has a current Operating Margin % of 33.78%. The stock's GF Value™ is $0.88, compared to a current price of $1.23 — trading 39.8% above its estimated fair value. The current Operating Margin % is 33.78%, which is 99% above median its 10-year median of 16.98 and 155.3% above the Real Estate industry median of 13.23. New World Development Co's overall GF Score™ is 58/100 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 New World Development Co (NWWDF), the current Operating Margin % is 33.78% 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 New World Development Co (NWWDF) Overvalued in 2026?
Based on GuruFocus' analysis, New World Development Co stock appears to be overvalued.
The current stock price of $1.23 is trading 39.8% above its estimated GF Value™ of $0.88.
Key valuation signals for NWWDF:
Operating Margin %: 33.78% (99% above median its 10-year median of 16.98)
GF Value™: $0.88 vs. price of $1.23 (39.8% above fair value)
Industry Position: 155.3% above the Real Estate median (#574 of 1745)
No single metric tells the full story. See the NWWDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
New World Development is the listed property arm of Chow Tai Fook, owned by the Cheng family. Chow Tai Fook owns about a 45% stake in NWD, which mainly engages in residential property development and investment properties of retail malls and offices in Hong Kong and mainland China. NWD also develops high-end hotels across Hong Kong, mainland China, and in Southeast Asia. Additionally, NWD holds a 75% interest in New World Department Store China, which operates 24 department stores in mainland China.
58GF Score
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