Chemical Industries (Far East)SGX:C05 44 Operating Margin % is 0.80% as of Mar. 2026, which is 76% below its 10-year median of 3.34. GuruFocus rates SGX:C05 with a GF Score™ of 44/100 and a GF Value™ of S$0.42 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,580 Chemicals companies, Chemical Industries (Far East) ranks worse than 83.67% on this metric.
Chemical Industries (Far East) (SGX:C05) 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.
Chemical Industries (Far East) Operating Margin % Related Terms
Chemical Industries (Far East) 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.
Chemical Industries (Far East) Operating Margin % Chart
For the Chemicals subindustry, Chemical Industries (Far East)'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.
Chemical Industries (Far East) Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Chemical Industries (Far East)'s Operating Margin % distribution charts can be found below:
* The bar in red indicates where Chemical Industries (Far East)'s Operating Margin % falls into.
Chemical Industries (Far East) 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.
Chemical Industries (Far East) (SGX:C05) has a Operating Margin % of 0.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Chemical Industries (Far East) and its competitors. This is 76% below median its historical median of 3.34. According to the industry distribution chart, Chemical Industries (Far East) ranks #1322 out of 1580 companies in the Chemicals industry, placing it in the top 83.7%.
Is Chemical Industries (Far East)'s Operating Margin % too high?
Chemical Industries (Far East)'s current Operating Margin % of 0.80% is 76% below median its 10-year median of 3.34. The Chemicals industry median Operating Margin % is 6.02. Chemical Industries (Far East)'s value of 0.80% is 86.7% below this industry median. Based on the distribution chart, Chemical Industries (Far East) ranks #1322 out of 1580 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Chemical Industries (Far East) has a GF Score™ of 44/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemical Industries (Far East)'s Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Chemical Industries (Far East) ranks #1322 out of 1580 companies for Operating Margin %. This places Chemical Industries (Far East) in the lower half of its industry. The industry median Operating Margin % is 6.02. Chemical Industries (Far East)'s value of 0.80% is 86.7% below this benchmark. While the company's 10-year median is 3.34 vs. the industry median of 6.02, Chemical Industries (Far East) has consistently been below 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,580 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. Chemical Industries (Far East)'s current Operating Margin % of 0.80% is 86.7% below 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 Chemical Industries (Far East) and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemical Industries (Far East)'s current Operating Margin % is 0.80%, which is 76% below median its own 10-year median of 3.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemical Industries (Far East) stock overvalued right now?
Based on GuruFocus' analysis, Chemical Industries (Far East) (SGX:C05) is currently considered Modestly Overvalued. The stock's GF Value™ is S$0.42, compared to a current price of S$0.53 — trading 25% above its estimated fair value. The current Operating Margin % is 0.80%, which is 76% below median its 10-year median of 3.34 and 86.7% below the Chemicals industry median of 6.02. Chemical Industries (Far East)'s overall GF Score™ is 44/100 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 Chemical Industries (Far East) (SGX:C05), the current Operating Margin % is 0.80% 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 Chemical Industries (Far East) (SGX:C05) Overvalued in 2026?
Based on GuruFocus' analysis, Chemical Industries (Far East) stock appears to be overvalued.
The current stock price of S$0.53 is trading 25% above its estimated GF Value™ of S$0.42.
GuruFocus considers Chemical Industries (Far East) to be Modestly Overvalued.
Key valuation signals for SGX:C05:
Operating Margin %: 0.80% (76% below median its 10-year median of 3.34)
GF Value™: S$0.42 vs. price of S$0.53 (25% above fair value)
Industry Position: 86.7% below the Chemicals median (#1322 of 1580)
No single metric tells the full story. See the SGX:C05 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemical Industries (Far East) Business Description
Chemical Industries (Far East) Ltd is engaged as the sole manufacturer of Chemical products in Singapore. The company operates through two segments Industrial Chemicals and Properties. The company generates maximum revenue from the Industrial Chemicals segment. Geographically, the company derives a majority of its revenue from Singapore. The company's product portfolio consists of Chlorine, Caustic Soda, Sodium Hypochlorite, Hydrochloric Acid, and others.
44GF Score
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