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Shanghai SMI Holding CoSHSE:600649 +1.10%56 Operating Margin % is 23.66% as of Mar. 2026, which is 126% above its 10-year median of 10.47. GuruFocus rates SHSE:600649 with a GF Score™ of 56/100 and a GF Value™ of ¥7.28 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 1,744 Real Estate companies, Shanghai SMI Holding Co ranks worse than 57.51% on this metric.
Shanghai SMI Holding Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Shanghai SMI Holding Co (SHSE:600649) 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.
Shanghai SMI Holding Co Operating Margin % Related Terms
Shanghai SMI Holding Co Operating Margin % Historical Data
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The historical data trend for Shanghai SMI 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.
Shanghai SMI Holding Co Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, Shanghai SMI 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.
Shanghai SMI Holding Co Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Shanghai SMI Holding Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai SMI Holding Co's Operating Margin % falls into.
Shanghai SMI 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.
Shanghai SMI Holding Co'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.
Shanghai SMI Holding Co (SHSE:600649) has a Operating Margin % of 23.66% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai SMI Holding Co and its competitors. This is 126% above median its historical median of 10.47. Over the past decade, Shanghai SMI Holding Co's Operating Margin % has ranged from 2.14 to 34.58. According to the industry distribution chart, Shanghai SMI Holding Co ranks #1003 out of 1744 companies in the Real Estate industry, placing it in the top 57.5%.
Is Shanghai SMI Holding Co's Operating Margin % too high?
Shanghai SMI Holding Co's current Operating Margin % of 23.66% is 126% above median its 10-year median of 10.47. Over the past 10 years, this metric has ranged from a low of 2.14 to a high of 34.58. The Real Estate industry median Operating Margin % is 13.22. Shanghai SMI Holding Co's value of 23.66% is 79% above this industry median. Based on the distribution chart, Shanghai SMI Holding Co ranks #1003 out of 1744 companies in the Real Estate industry, which is below the industry midpoint. Overall, Shanghai SMI Holding Co has a GF Score™ of 56/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shanghai SMI Holding Co's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, Shanghai SMI Holding Co ranks #1003 out of 1744 companies for Operating Margin %. This places Shanghai SMI Holding Co in the lower half of its industry. The industry median Operating Margin % is 13.22. Shanghai SMI Holding Co's value of 23.66% is 79% above this benchmark. Historically, Shanghai SMI Holding Co's own Operating Margin % has ranged from 2.14 to 34.58 over the past decade. While the company's 10-year median is 10.47 vs. the industry median of 13.22, Shanghai SMI Holding 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.22, based on 1,744 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. Shanghai SMI Holding Co's current Operating Margin % of 23.66% is 79% 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 Shanghai SMI Holding Co and its competitors. For the Real Estate industry, the median Operating Margin % is 13.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai SMI Holding Co's current Operating Margin % is 23.66%, which is 126% above median its own 10-year median of 10.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai SMI Holding Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai SMI Holding Co (SHSE:600649) is currently considered Possible Value Trap. The stock's GF Value™ is ¥7.28, compared to a current price of ¥3.69 — trading 49.3% below its estimated fair value. The current Operating Margin % is 23.66%, which is 126% above median its 10-year median of 10.47 and 79% above the Real Estate industry median of 13.22. Shanghai SMI Holding Co's overall GF Score™ is 56/100 with 6 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 Shanghai SMI Holding Co (SHSE:600649), the current Operating Margin % is 23.66% 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 Shanghai SMI Holding Co (SHSE:600649) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai SMI Holding Co stock appears to be undervalued.
The current stock price of ¥3.69 is trading 49.3% below its estimated GF Value™ of ¥7.28.
GuruFocus considers Shanghai SMI Holding Co to be Possible Value Trap.
Key valuation signals for SHSE:600649:
Operating Margin %: 23.66% (126% above median its 10-year median of 10.47)
GF Value™: ¥7.28 vs. price of ¥3.69 (49.3% below fair value)
Industry Position: 79% above the Real Estate median (#1003 of 1744)
No single metric tells the full story. See the SHSE:600649 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai SMI Holding Co Ltd is a real estate company. The company is a provider of comprehensive real estate, environmental and venture capital services with impressive core competence in China. Its real estate business includes the development of land, the construction of housing and commercial housing such as office parks, office building, and others. The company's investment business mainly includes direct equity investment such as invests in the listed companies and private equity investment fund management includes PE and urban development funds.
56GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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