Sihuan Pharmaceutical Holdings GroupSHPHF 52 Operating Margin % is 14.99% as of Dec. 2025, which is 24% below its 10-year median of 19.77. GuruFocus rates SHPHF with a GF Score™ of 52/100 and a GF Value™ of $0.17 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 955 Drug Manufacturers companies, Sihuan Pharmaceutical Holdings Group ranks better than 69.11% on this metric.
Sihuan Pharmaceutical Holdings Group (OTCPK:SHPHF) 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.
Sihuan Pharmaceutical Holdings Group Operating Margin % Related Terms
Sihuan Pharmaceutical Holdings Group 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.
Sihuan Pharmaceutical Holdings Group Operating Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Sihuan Pharmaceutical Holdings Group'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.
Sihuan Pharmaceutical Holdings Group Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Sihuan Pharmaceutical Holdings Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sihuan Pharmaceutical Holdings Group's Operating Margin % falls into.
Sihuan Pharmaceutical Holdings Group 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.
Sihuan Pharmaceutical Holdings Group (SHPHF) has a Operating Margin % of 14.99% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sihuan Pharmaceutical Holdings Group and its competitors. This is 24% below median its historical median of 19.77. According to the industry distribution chart, Sihuan Pharmaceutical Holdings Group ranks #295 out of 955 companies in the Drug Manufacturers industry, placing it in the top 30.9%.
Is Sihuan Pharmaceutical Holdings Group's Operating Margin % too high?
Sihuan Pharmaceutical Holdings Group's current Operating Margin % of 14.99% is 24% below median its 10-year median of 19.77. The Drug Manufacturers industry median Operating Margin % is 7.45. Sihuan Pharmaceutical Holdings Group's value of 14.99% is 101.2% above this industry median. Based on the distribution chart, Sihuan Pharmaceutical Holdings Group ranks #295 out of 955 companies in the Drug Manufacturers industry, which is above the industry midpoint. Overall, Sihuan Pharmaceutical Holdings Group has a GF Score™ of 52/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sihuan Pharmaceutical Holdings Group's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Sihuan Pharmaceutical Holdings Group ranks #295 out of 955 companies for Operating Margin %. This puts Sihuan Pharmaceutical Holdings Group in the upper half of its industry. The industry median Operating Margin % is 7.45. Sihuan Pharmaceutical Holdings Group's value of 14.99% is 101.2% above this benchmark. While the company's 10-year median is 19.77 vs. the industry median of 7.45, Sihuan Pharmaceutical Holdings Group 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.45, based on 955 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. Sihuan Pharmaceutical Holdings Group's current Operating Margin % of 14.99% is 101.2% 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 Sihuan Pharmaceutical Holdings Group and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sihuan Pharmaceutical Holdings Group's current Operating Margin % is 14.99%, which is 24% below median its own 10-year median of 19.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sihuan Pharmaceutical Holdings Group stock overvalued right now?
Based on GuruFocus' analysis, Sihuan Pharmaceutical Holdings Group (SHPHF) is currently considered Modestly Undervalued. The stock's GF Value™ is $0.17, compared to a current price of $0.13 — trading 23.7% below its estimated fair value. The current Operating Margin % is 14.99%, which is 24% below median its 10-year median of 19.77 and 101.2% above the Drug Manufacturers industry median of 7.45. Sihuan Pharmaceutical Holdings Group's overall GF Score™ is 52/100 with 4 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 Sihuan Pharmaceutical Holdings Group (SHPHF), the current Operating Margin % is 14.99% 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 Sihuan Pharmaceutical Holdings Group (SHPHF) Overvalued in 2026?
Based on GuruFocus' analysis, Sihuan Pharmaceutical Holdings Group stock appears to be undervalued.
The current stock price of $0.13 is trading 23.7% below its estimated GF Value™ of $0.17.
GuruFocus considers Sihuan Pharmaceutical Holdings Group to be Modestly Undervalued.
Key valuation signals for SHPHF:
Operating Margin %: 14.99% (24% below median its 10-year median of 19.77)
GF Value™: $0.17 vs. price of $0.13 (23.7% below fair value)
Industry Position: 101.2% above the Drug Manufacturers median (#295 of 955)
No single metric tells the full story. See the SHPHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Sihuan Pharmaceutical Holdings Group Business Description
Sihuan Pharmaceutical Holdings Group Ltd is an investment holding company. Along with its subsidiaries, the company is engaged in the research & development and the manufacture & sale of pharmaceutical products. Its portfolio comprises products for diseases related to the cardio-cerebral vascular (CCV) system, Respiratory, Neurology, and others. The group has three reportable segments: the medical aesthetic products segment, including the filling, shaping, supporting, supplementing, optoelectronic device, body sculpturing, skincare, and others; the innovative medicine and other medicine segment; and the generic medicine segment, which generates key revenue. Geographically, the company generates a majority of its revenue from Mainland China and the rest from the United States.
52GF Score
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