Jiangxi Tungsten Rare and Precious Equipment Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Jiangxi Tungsten Rare and Precious Equipment Co (SHSE:600397) 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.
Jiangxi Tungsten Rare and Precious Equipment Co Operating Margin % Related Terms
Jiangxi Tungsten Rare and Precious Equipment 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.
Jiangxi Tungsten Rare and Precious Equipment Co Operating Margin % Chart
Jiangxi Tungsten Rare and Precious Equipment Co Annual Data
SHSE:600397 vs HCC, AMR, METC: Operating Margin % Comparison
For the Coking Coal subindustry, Jiangxi Tungsten Rare and Precious Equipment 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.
Jiangxi Tungsten Rare and Precious Equipment Co Operating Margin % vs Steel Industry
Jiangxi Tungsten Rare and Precious Equipment 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.
Jiangxi Tungsten Rare and Precious Equipment Co (SHSE:600397) has a Operating Margin % of 10.12% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Jiangxi Tungsten Rare and Precious Equipment Co and its competitors. This is 375% above median its historical median of 2.13. According to the industry distribution chart, Jiangxi Tungsten Rare and Precious Equipment Co ranks #529 out of 616 companies in the Steel industry, placing it in the top 85.9%.
Is Jiangxi Tungsten Rare and Precious Equipment Co's Operating Margin % too high?
Jiangxi Tungsten Rare and Precious Equipment Co's current Operating Margin % of 10.12% is 375% above median its 10-year median of 2.13. The Steel industry median Operating Margin % is 3.00. Jiangxi Tungsten Rare and Precious Equipment Co's value of 10.12% is 237.3% above this industry median. Based on the distribution chart, Jiangxi Tungsten Rare and Precious Equipment Co ranks #529 out of 616 companies in the Steel industry, which is in the bottom quartile relative to peers. Overall, Jiangxi Tungsten Rare and Precious Equipment Co has a GF Score™ of 31/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangxi Tungsten Rare and Precious Equipment Co's Operating Margin % compare to HCC and AMR?
According to the Steel industry distribution chart, Jiangxi Tungsten Rare and Precious Equipment Co ranks #529 out of 616 companies for Operating Margin %. This places Jiangxi Tungsten Rare and Precious Equipment Co in the lower half of its industry. The industry median Operating Margin % is 3.00. Jiangxi Tungsten Rare and Precious Equipment Co's value of 10.12% is 237.3% above this benchmark. While the company's 10-year median is 2.13 vs. the industry median of 3.00, Jiangxi Tungsten Rare and Precious Equipment 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 Steel company?
The median Operating Margin % among Steel companies is 3.00, based on 616 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. Jiangxi Tungsten Rare and Precious Equipment Co's current Operating Margin % of 10.12% is 237.3% 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 Jiangxi Tungsten Rare and Precious Equipment Co and its competitors. For the Steel industry, the median Operating Margin % is 3.00 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangxi Tungsten Rare and Precious Equipment Co's current Operating Margin % is 10.12%, which is 375% above median its own 10-year median of 2.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangxi Tungsten Rare and Precious Equipment Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangxi Tungsten Rare and Precious Equipment Co (SHSE:600397) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥0.78, compared to a current price of ¥25.94 — trading 3225.6% above its estimated fair value. The current Operating Margin % is 10.12%, which is 375% above median its 10-year median of 2.13 and 237.3% above the Steel industry median of 3.00. Jiangxi Tungsten Rare and Precious Equipment Co's overall GF Score™ is 31/100 with 8 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 Jiangxi Tungsten Rare and Precious Equipment Co (SHSE:600397), the current Operating Margin % is 10.12% 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 Jiangxi Tungsten Rare and Precious Equipment Co (SHSE:600397) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangxi Tungsten Rare and Precious Equipment Co stock appears to be overvalued.
The current stock price of ¥25.94 is trading 3225.6% above its estimated GF Value™ of ¥0.78.
GuruFocus considers Jiangxi Tungsten Rare and Precious Equipment Co to be Significantly Overvalued.
Key valuation signals for SHSE:600397:
Operating Margin %: 10.12% (375% above median its 10-year median of 2.13)
GF Value™: ¥0.78 vs. price of ¥25.94 (3225.6% above fair value)
Industry Position: 237.3% above the Steel median (#529 of 616)
No single metric tells the full story. See the SHSE:600397 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangxi Tungsten Rare and Precious Equipment Co Business Description
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:600397 has been successfully added to your 
