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Jiangxi Hongcheng Environment CoSHSE:600461 +0.22%76 Operating Margin % is 26.78% as of Mar. 2026, which is 49% above its 10-year median of 18.02. GuruFocus rates SHSE:600461 with a GF Score™ of 76/100 and a GF Value™ of ¥8.20 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 499 Utilities - Regulated companies, Jiangxi Hongcheng Environment Co ranks better than 77.76% on this metric.
Jiangxi Hongcheng Environment Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Jiangxi Hongcheng Environment Co's Operating Margin % or its related term are showing as below:
SHSE:600461'
s Operating Margin % Range Over the Past 10 Years
Min: 12.3 Med: 18.02 Max: 24.9
Current: 24.9
SHSE:600461's Operating Margin % is ranked better than 77.76% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.85
vs SHSE:600461: 24.90
Jiangxi Hongcheng Environment Co (SHSE:600461) 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 Hongcheng Environment Co Operating Margin % Related Terms
Jiangxi Hongcheng Environment 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 Hongcheng Environment Co Operating Margin % Chart
SHSE:600461 vs AWK, WTRG, AWR: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, Jiangxi Hongcheng Environment 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 Hongcheng Environment Co Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Jiangxi Hongcheng Environment Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Jiangxi Hongcheng Environment Co's Operating Margin % falls into.
Jiangxi Hongcheng Environment 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 Hongcheng Environment Co (SHSE:600461) has a Operating Margin % of 26.78% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Jiangxi Hongcheng Environment Co and its competitors. This is 49% above median its historical median of 18.02. Over the past decade, Jiangxi Hongcheng Environment Co's Operating Margin % has ranged from 12.30 to 24.90. According to the industry distribution chart, Jiangxi Hongcheng Environment Co ranks #111 out of 499 companies in the Utilities - Regulated industry, placing it in the top 22.2%.
Is Jiangxi Hongcheng Environment Co's Operating Margin % too high?
Jiangxi Hongcheng Environment Co's current Operating Margin % of 26.78% is 49% above median its 10-year median of 18.02. Over the past 10 years, this metric has ranged from a low of 12.30 to a high of 24.90. The Utilities - Regulated industry median Operating Margin % is 14.85. Jiangxi Hongcheng Environment Co's value of 26.78% is 80.3% above this industry median. Based on the distribution chart, Jiangxi Hongcheng Environment Co ranks #111 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Jiangxi Hongcheng Environment Co has a GF Score™ of 76/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangxi Hongcheng Environment Co's Operating Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Jiangxi Hongcheng Environment Co ranks #111 out of 499 companies for Operating Margin %. This places Jiangxi Hongcheng Environment Co in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.85. Jiangxi Hongcheng Environment Co's value of 26.78% is 80.3% above this benchmark. Historically, Jiangxi Hongcheng Environment Co's own Operating Margin % has ranged from 12.30 to 24.90 over the past decade. While the company's 10-year median is 18.02 vs. the industry median of 14.85, Jiangxi Hongcheng Environment 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.85, based on 499 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 Hongcheng Environment Co's current Operating Margin % of 26.78% is 80.3% 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 Hongcheng Environment Co and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangxi Hongcheng Environment Co's current Operating Margin % is 26.78%, which is 49% above median its own 10-year median of 18.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangxi Hongcheng Environment Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangxi Hongcheng Environment Co (SHSE:600461) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥8.20, compared to a current price of ¥9.27 — trading 13% above its estimated fair value. The current Operating Margin % is 26.78%, which is 49% above median its 10-year median of 18.02 and 80.3% above the Utilities - Regulated industry median of 14.85. Jiangxi Hongcheng Environment Co's overall GF Score™ is 76/100 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 Jiangxi Hongcheng Environment Co (SHSE:600461), the current Operating Margin % is 26.78% 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 Hongcheng Environment Co (SHSE:600461) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangxi Hongcheng Environment Co stock appears to be overvalued.
The current stock price of ¥9.27 is trading 13% above its estimated GF Value™ of ¥8.20.
GuruFocus considers Jiangxi Hongcheng Environment Co to be Modestly Overvalued.
Key valuation signals for SHSE:600461:
Operating Margin %: 26.78% (49% above median its 10-year median of 18.02)
GF Value™: ¥8.20 vs. price of ¥9.27 (13% above fair value)
Industry Position: 80.3% above the Utilities - Regulated median (#111 of 499)
No single metric tells the full story. See the SHSE:600461 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangxi Hongcheng Environment Co Business Description
Jiangxi Hongcheng Environment Co Ltd is a China-based engaged in the production and operation of water and wastewater treatment. The company is mainly engaged in tap water production and supply, sewage treatment, gas energy and other businesses.
76GF Score
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