China Petroleum & ChemicalSHSE:600028 -1.29%51 Operating Margin % is 0.89% as of Dec. 2025, which is 70% below its 10-year median of 3.00. GuruFocus rates SHSE:600028 with a GF Score™ of 51/100 and a GF Value™ of ¥5.45 (Modestly Undervalued). The stock has 7 warning signs investors should review. Among 916 Oil & Gas companies, China Petroleum & Chemical ranks worse than 69.21% on this metric.
China Petroleum & Chemical Corp has recorded a loss in operating income at least once over the past 3 years.
China Petroleum & Chemical (SHSE:600028) 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.
China Petroleum & Chemical Operating Margin % Related Terms
China Petroleum & Chemical 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.
China Petroleum & Chemical Operating Margin % Chart
SHSE:600028 vs XOM, CVX: Operating Margin % Comparison
For the Oil & Gas Integrated subindustry, China Petroleum & Chemical'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.
China Petroleum & Chemical Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China Petroleum & Chemical's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Petroleum & Chemical's Operating Margin % falls into.
China Petroleum & Chemical 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.
China Petroleum & Chemical's Operating Margin % for the fiscal year that ended in Dec. 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.
China Petroleum & Chemical (SHSE:600028) has a Operating Margin % of 0.89% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Petroleum & Chemical and its competitors. This is 70% below median its historical median of 3.00. Over the past decade, China Petroleum & Chemical's Operating Margin % has ranged from 1.29 to 4.50. According to the industry distribution chart, China Petroleum & Chemical ranks #634 out of 916 companies in the Oil & Gas industry, placing it in the top 69.2%.
Is China Petroleum & Chemical's Operating Margin % too high?
China Petroleum & Chemical's current Operating Margin % of 0.89% is 70% below median its 10-year median of 3.00. Over the past 10 years, this metric has ranged from a low of 1.29 to a high of 4.50. The Oil & Gas industry median Operating Margin % is 6.86. China Petroleum & Chemical's value of 0.89% is 87% below this industry median. Based on the distribution chart, China Petroleum & Chemical ranks #634 out of 916 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, China Petroleum & Chemical has a GF Score™ of 51/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does China Petroleum & Chemical's Operating Margin % compare to XOM and CVX?
According to the Oil & Gas industry distribution chart, China Petroleum & Chemical ranks #634 out of 916 companies for Operating Margin %. This places China Petroleum & Chemical in the lower half of its industry. The industry median Operating Margin % is 6.86. China Petroleum & Chemical's value of 0.89% is 87% below this benchmark. Historically, China Petroleum & Chemical's own Operating Margin % has ranged from 1.29 to 4.50 over the past decade. While the company's 10-year median is 3.00 vs. the industry median of 6.86, China Petroleum & Chemical 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 an Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.86, based on 916 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. China Petroleum & Chemical's current Operating Margin % of 0.89% is 87% 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 China Petroleum & Chemical and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Petroleum & Chemical's current Operating Margin % is 0.89%, which is 70% below median its own 10-year median of 3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Petroleum & Chemical stock overvalued right now?
Based on GuruFocus' analysis, China Petroleum & Chemical (SHSE:600028) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥5.45, compared to a current price of ¥4.60 — trading 15.6% below its estimated fair value. The current Operating Margin % is 0.89%, which is 70% below median its 10-year median of 3.00 and 87% below the Oil & Gas industry median of 6.86. China Petroleum & Chemical's overall GF Score™ is 51/100 with 7 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 China Petroleum & Chemical (SHSE:600028), the current Operating Margin % is 0.89% 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 China Petroleum & Chemical (SHSE:600028) Overvalued in 2026?
Based on GuruFocus' analysis, China Petroleum & Chemical stock appears to be undervalued.
The current stock price of ¥4.60 is trading 15.6% below its estimated GF Value™ of ¥5.45.
GuruFocus considers China Petroleum & Chemical to be Modestly Undervalued.
Key valuation signals for SHSE:600028:
Operating Margin %: 0.89% (70% below median its 10-year median of 3.00)
GF Value™: ¥5.45 vs. price of ¥4.60 (15.6% below fair value)
Industry Position: 87% below the Oil & Gas median (#634 of 916)
No single metric tells the full story. See the SHSE:600028 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Petroleum & Chemical, or Sinopec, is one of China's national oil companies and one of Asian's largest integrated oil companies in revenue. Its income is derived primarily from refining and marketing of oil products and petrochemical production. Sinopec has China's largest petrol station network with over 30,000 stations and enjoys a significant market share in petrochemicals. Established in 2000 by China Petrochemical Corporation, a stateowned enterprise and majority shareholder, the company also owns oil and gas assets in Shandong and Sichuan provinces. It has a smaller global upstream presence than its peers, PetroChina and CNOOC. In 2025, Sinopec's production of oil and gas equivalent was 525.28 million barrels. The firm also processed 250.33 million metric tons of crude oil.
51GF Score
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