Hubei Huarong Holding Co (SHSE:600421) Operating Margin %: 15.38% (As of Mar. 2026)

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SHSE:600421 Hubei Huarong Holding Co Ltd SHSE:600421
22 GF Score
Price ¥0.24
GF Value ¥12.45
Valuation Possible Value Trap
! 5 Warning Signs
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What is Hubei Huarong Holding Co Operating Margin %?

Hubei Huarong Holding Co SHSE:600421 22 Operating Margin % is 15.38% as of Mar. 2026. GuruFocus rates SHSE:600421 with a GF Score™ of 22/100 and a GF Value™ of ¥12.45 (Possible Value Trap). The stock has 5 warning signs investors should review. Among 95 Personal Services companies, Hubei Huarong Holding Co ranks better than 50.53% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hubei Huarong Holding Co's Operating Income for the three months ended in Mar. 2026 was ¥9.3 Mil. Hubei Huarong Holding Co's Revenue for the three months ended in Mar. 2026 was ¥60.1 Mil. Therefore, Hubei Huarong Holding Co's Operating Margin % for the quarter that ended in Mar. 2026 was 15.38%.

The historical rank and industry rank for Hubei Huarong Holding Co's Operating Margin % or its related term are showing as below:

SHSE:600421' s Operating Margin % Range Over the Past 10 Years
Min: -750.35   Med: -4.06   Max: 6.62
Current: 6.62


SHSE:600421's Operating Margin % is ranked better than
50.53% of 95 companies
in the Personal Services industry
Industry Median: 6.61 vs SHSE:600421: 6.62

Hubei Huarong Holding Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Hubei Huarong Holding Co's Operating Income for the three months ended in Mar. 2026 was ¥9.3 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥13.0 Mil.


Hubei Huarong Holding Co  (SHSE:600421) 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 Nokia’s 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.


Hubei Huarong Holding Co Operating Margin % Related Terms


Hubei Huarong Holding Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Hubei Huarong Holding Co's Operating Margin % can be seen below:

* 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.

Hubei Huarong Holding Co Operating Margin % Chart

Hubei Huarong Holding Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.51 -4.60 -1.65 1.16 2.21

Hubei Huarong Holding Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.50 -5.98 6.64 4.93 15.38

SHSE:600421 vs ROL, SCI, FTDR: Operating Margin % Comparison

For the Personal Services subindustry, Hubei Huarong Holding 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.


Hubei Huarong Holding Co Operating Margin % vs Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Hubei Huarong Holding Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hubei Huarong Holding Co's Operating Margin % falls into.


SHSE:600421
22GF Score
Hubei Huarong Holding Co Ltd SHSE:600421
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hubei Huarong Holding 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.

Hubei Huarong Holding Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=3.45 / 156.356
=2.21 %

Hubei Huarong Holding Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=9.252 / 60.149
=15.38 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 15.38% mean?
Hubei Huarong Holding Co (SHSE:600421) has a Operating Margin % of 15.38% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hubei Huarong Holding Co and its competitors. According to the industry distribution chart, Hubei Huarong Holding Co ranks #47 out of 95 companies in the Personal Services industry, placing it in the top 49.5%.
Is Hubei Huarong Holding Co's Operating Margin % too high?
Hubei Huarong Holding Co's current Operating Margin % is 15.38%. The Personal Services industry median Operating Margin % is 6.61. Hubei Huarong Holding Co's value of 15.38% is 132.7% above this industry median. Based on the distribution chart, Hubei Huarong Holding Co ranks #47 out of 95 companies in the Personal Services industry, which is above the industry midpoint. Overall, Hubei Huarong Holding Co has a GF Score™ of 22/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Hubei Huarong Holding Co's Operating Margin % compare to ROL and SCI?
According to the Personal Services industry distribution chart, Hubei Huarong Holding Co ranks #47 out of 95 companies for Operating Margin %. This puts Hubei Huarong Holding Co in the upper half of its industry. The industry median Operating Margin % is 6.61. Hubei Huarong Holding Co's value of 15.38% is 132.7% above this benchmark. 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 Personal Services company?
The median Operating Margin % among Personal Services companies is 6.61, based on 95 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. Hubei Huarong Holding Co's current Operating Margin % of 15.38% is 132.7% 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 Hubei Huarong Holding Co and its competitors. For the Personal Services industry, the median Operating Margin % is 6.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hubei Huarong Holding Co's current Operating Margin % is 15.38%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hubei Huarong Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Hubei Huarong Holding Co (SHSE:600421) is currently considered Possible Value Trap. The stock's GF Value™ is ¥12.45, compared to a current price of ¥0.24 — trading 98.1% below its estimated fair value. The current Operating Margin % is 15.38% and 132.7% above the Personal Services industry median of 6.61. Hubei Huarong Holding Co's overall GF Score™ is 22/100 with 5 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 Hubei Huarong Holding Co (SHSE:600421), the current Operating Margin % is 15.38% 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 Hubei Huarong Holding Co (SHSE:600421) Overvalued in 2026?

Based on GuruFocus' analysis, Hubei Huarong Holding Co stock appears to be undervalued. The current stock price of ¥0.24 is trading 98.1% below its estimated GF Value™ of ¥12.45. GuruFocus considers Hubei Huarong Holding Co to be Possible Value Trap.

Key valuation signals for SHSE:600421:

  • Operating Margin %: 15.38%
  • GF Value™: ¥12.45 vs. price of ¥0.24 (98.1% below fair value)
  • GF Score™: 22/100 with 5 warning signs
  • Industry Position: 132.7% above the Personal Services median (#47 of 95)

No single metric tells the full story. See the SHSE:600421 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hubei Huarong Holding Co Business Description

Address No. 628 Wuluo Road, Building B, Asia Trade Plaza, Wuchang District, Wuhan, CHN, 430070
Hubei Huarong Holding Co Ltd, formerly Hubei Yangfan Holding Co Ltd through its subsidiary is engaged in cemetery sales agency and funeral services.
22GF Score

Get the complete analysis for SHSE:600421

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥0.24
Price
¥12.45
GF Value