Shanghai Fudan Microelectronics Group Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Shanghai Fudan Microelectronics Group Co (OTCPK:SFDMY) 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.
Shanghai Fudan Microelectronics Group Co Operating Margin % Related Terms
Shanghai Fudan Microelectronics Group 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.
Shanghai Fudan Microelectronics Group Co Operating Margin % Chart
Shanghai Fudan Microelectronics Group Co Annual Data
SFDMY vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Shanghai Fudan Microelectronics Group 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.
Shanghai Fudan Microelectronics Group Co Operating Margin % vs Semiconductors Industry
Shanghai Fudan Microelectronics Group 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.
* 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.
Shanghai Fudan Microelectronics Group Co (SFDMY) has a Operating Margin % of 23.12% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai Fudan Microelectronics Group Co and its competitors. This is near median its historical median of 23.54. According to the industry distribution chart, Shanghai Fudan Microelectronics Group Co ranks #219 out of 1023 companies in the Semiconductors industry, placing it in the top 21.4%.
Is Shanghai Fudan Microelectronics Group Co's Operating Margin % too high?
Shanghai Fudan Microelectronics Group Co's current Operating Margin % of 23.12% is near median its 10-year median of 23.54. The Semiconductors industry median Operating Margin % is 5.24. Shanghai Fudan Microelectronics Group Co's value of 23.12% is 341.2% above this industry median. Based on the distribution chart, Shanghai Fudan Microelectronics Group Co ranks #219 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai Fudan Microelectronics Group Co has a GF Score™ of 94/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Fudan Microelectronics Group Co's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Shanghai Fudan Microelectronics Group Co ranks #219 out of 1023 companies for Operating Margin %. This places Shanghai Fudan Microelectronics Group Co in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Shanghai Fudan Microelectronics Group Co's value of 23.12% is 341.2% above this benchmark. While the company's 10-year median is 23.54 vs. the industry median of 5.24, Shanghai Fudan Microelectronics Group 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.24, based on 1,023 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. Shanghai Fudan Microelectronics Group Co's current Operating Margin % of 23.12% is 341.2% 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 Shanghai Fudan Microelectronics Group Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Fudan Microelectronics Group Co's current Operating Margin % is 23.12%, which is near median its own 10-year median of 23.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Fudan Microelectronics Group Co stock overvalued right now?
Shanghai Fudan Microelectronics Group Co (SFDMY) has a current Operating Margin % of 23.12%. The stock's GF Value™ is $41.71, compared to a current price of $49.75 — trading 19.3% above its estimated fair value. The current Operating Margin % is 23.12%, which is near median its 10-year median of 23.54 and 341.2% above the Semiconductors industry median of 5.24. Shanghai Fudan Microelectronics Group Co's overall GF Score™ is 94/100 with 5 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 Shanghai Fudan Microelectronics Group Co (SFDMY), the current Operating Margin % is 23.12% 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 Shanghai Fudan Microelectronics Group Co (SFDMY) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Fudan Microelectronics Group Co stock appears to be overvalued.
The current stock price of $49.75 is trading 19.3% above its estimated GF Value™ of $41.71.
Key valuation signals for SFDMY:
Operating Margin %: 23.12% (near median its 10-year median of 23.54)
GF Value™: $41.71 vs. price of $49.75 (19.3% above fair value)
Industry Position: 341.2% above the Semiconductors median (#219 of 1023)
No single metric tells the full story. See the SFDMY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Fudan Microelectronics Group Co Business Description
Shanghai Fudan Microelectronics Group Co Ltd is a China-based company. Along with its subsidiaries, it is engaged in the design, development, and sale of integrated circuit products; and integrated circuit product testing services. The company is organised into business units based on products and services and has two reportable segments as follows: The design, development and sale of IC products segment (Design segment): Production of security and identification chips, non-volatile memory, smart meter chips, FPGAs, and other chips; and The provision of testing services for the IC products segment (Testing segment): IC chip and IC product testing services.
94GF Score
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