Shanghai Industrial HoldingsSGHIF +4.08%50 Operating Margin % is 13.86% as of Dec. 2025, which is 46% below its 10-year median of 25.47. GuruFocus rates SGHIF with a GF Score™ of 50/100 and a GF Value™ of $1.00 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 546 Conglomerates companies, Shanghai Industrial Holdings ranks better than 79.49% 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.
Shanghai Industrial Holdings Operating Margin % Related Terms
Shanghai Industrial 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.
For the Conglomerates subindustry, Shanghai Industrial 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.
Shanghai Industrial Holdings Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Shanghai Industrial Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Industrial Holdings'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.
* 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 Industrial Holdings (SGHIF) has a Operating Margin % of 13.86% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai Industrial Holdings and its competitors. This is 46% below median its historical median of 25.47. Over the past decade, Shanghai Industrial Holdings' Operating Margin % has ranged from 14.10 to 30.40. According to the industry distribution chart, Shanghai Industrial Holdings ranks #112 out of 546 companies in the Conglomerates industry, placing it in the top 20.5%.
Is Shanghai Industrial Holdings' Operating Margin % too high?
Shanghai Industrial Holdings' current Operating Margin % of 13.86% is 46% below median its 10-year median of 25.47. Over the past 10 years, this metric has ranged from a low of 14.10 to a high of 30.40. The Conglomerates industry median Operating Margin % is 5.86. Shanghai Industrial Holdings' value of 13.86% is 136.5% above this industry median. Based on the distribution chart, Shanghai Industrial Holdings ranks #112 out of 546 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai Industrial Holdings has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Industrial Holdings' Operating Margin % compare to HON and MMM?
According to the Conglomerates industry distribution chart, Shanghai Industrial Holdings ranks #112 out of 546 companies for Operating Margin %. This places Shanghai Industrial Holdings in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.86. Shanghai Industrial Holdings' value of 13.86% is 136.5% above this benchmark. Historically, Shanghai Industrial Holdings' own Operating Margin % has ranged from 14.10 to 30.40 over the past decade. While the company's 10-year median is 25.47 vs. the industry median of 5.86, Shanghai Industrial 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 Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.86, based on 546 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 Industrial Holdings's current Operating Margin % of 13.86% is 136.5% 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 Industrial Holdings and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Industrial Holdings's current Operating Margin % is 13.86%, which is 46% below median its own 10-year median of 25.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Industrial Holdings stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Industrial Holdings (SGHIF) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.00, compared to a current price of $1.71 — trading 71% above its estimated fair value. The current Operating Margin % is 13.86%, which is 46% below median its 10-year median of 25.47 and 136.5% above the Conglomerates industry median of 5.86. Shanghai Industrial Holdings' overall GF Score™ is 50/100 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 Shanghai Industrial Holdings (SGHIF), the current Operating Margin % is 13.86% 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 Shanghai Industrial Holdings (SGHIF) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Industrial Holdings stock appears to be overvalued.
The current stock price of $1.71 is trading 71% above its estimated GF Value™ of $1.00.
GuruFocus considers Shanghai Industrial Holdings to be Significantly Overvalued.
Key valuation signals for SGHIF:
Operating Margin %: 13.86% (46% below median its 10-year median of 25.47)
GF Value™: $1.00 vs. price of $1.71 (71% above fair value)
Industry Position: 136.5% above the Conglomerates median (#112 of 546)
No single metric tells the full story. See the SGHIF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Industrial Holdings Ltd is engaged in the real estate sector. It operates in four segments Infrastructure and environmental protection which includes investment in toll road/bridge projects and water services/clean energy businesses, Real estate which includes property development and investment and hotel operation, Consumer products which includes manufacture and sale of cigarettes, packaging materials, and printed products, Comprehensive healthcare operations which includes manufacture and sales of pharmaceutical and healthcare products, provision of distribution and supply chain solutions services and operation and franchise of a network of retail pharmacies Its geographical segments are China, Asia, Hong Kong, and others, of which the majority of its revenue comes from China.
50GF Score
Get the complete analysis for SGHIF
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SGHIF has been successfully added to your 
