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Avic Heavy Machinery CoSHSE:600765 +0.23%67 Operating Margin % is 18.65% as of Mar. 2026, which is 62% above its 10-year median of 11.54. GuruFocus rates SHSE:600765 with a GF Score™ of 67/100 and a GF Value™ of ¥17.12 (Modestly Undervalued). The stock has 10 warning signs investors should review. Among 3,032 Industrial Products companies, Avic Heavy Machinery Co ranks better than 70.22% on this metric.
Avic Heavy Machinery Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.3%.
The historical rank and industry rank for Avic Heavy Machinery Co's Operating Margin % or its related term are showing as below:
SHSE:600765'
s Operating Margin % Range Over the Past 10 Years
Min: 7.29 Med: 11.54 Max: 17.2
Current: 10.99
SHSE:600765's Operating Margin % is ranked better than 70.22% of 3032
companies
in the Industrial Products industry
Industry Median: 6.505
vs SHSE:600765: 10.99
Avic Heavy Machinery Co's 5-Year Average Operating Margin % Growth Rate was -8.30% per year.
Avic Heavy Machinery Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Avic Heavy Machinery Co (SHSE:600765) 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.
Avic Heavy Machinery Co Operating Margin % Related Terms
Avic Heavy Machinery Co Operating Margin % Historical Data
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The historical data trend for Avic Heavy Machinery 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.
SHSE:600765 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Avic Heavy Machinery 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.
Avic Heavy Machinery Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Avic Heavy Machinery Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Avic Heavy Machinery Co's Operating Margin % falls into.
Avic Heavy Machinery 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.
Avic Heavy Machinery 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.
Avic Heavy Machinery Co (SHSE:600765) has a Operating Margin % of 18.65% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Avic Heavy Machinery Co and its competitors. This is 62% above median its historical median of 11.54. Over the past decade, Avic Heavy Machinery Co's Operating Margin % has ranged from 7.29 to 17.20. According to the industry distribution chart, Avic Heavy Machinery Co ranks #903 out of 3032 companies in the Industrial Products industry, placing it in the top 29.8%.
Is Avic Heavy Machinery Co's Operating Margin % too high?
Avic Heavy Machinery Co's current Operating Margin % of 18.65% is 62% above median its 10-year median of 11.54. Over the past 10 years, this metric has ranged from a low of 7.29 to a high of 17.20. The Industrial Products industry median Operating Margin % is 6.51. Avic Heavy Machinery Co's value of 18.65% is 186.7% above this industry median. Based on the distribution chart, Avic Heavy Machinery Co ranks #903 out of 3032 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Avic Heavy Machinery Co has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Avic Heavy Machinery Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Avic Heavy Machinery Co ranks #903 out of 3032 companies for Operating Margin %. This puts Avic Heavy Machinery Co in the upper half of its industry. The industry median Operating Margin % is 6.51. Avic Heavy Machinery Co's value of 18.65% is 186.7% above this benchmark. Historically, Avic Heavy Machinery Co's own Operating Margin % has ranged from 7.29 to 17.20 over the past decade. While the company's 10-year median is 11.54 vs. the industry median of 6.51, Avic Heavy Machinery 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.51, based on 3,032 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. Avic Heavy Machinery Co's current Operating Margin % of 18.65% is 186.7% 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 Avic Heavy Machinery Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Avic Heavy Machinery Co's current Operating Margin % is 18.65%, which is 62% above median its own 10-year median of 11.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Avic Heavy Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Avic Heavy Machinery Co (SHSE:600765) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥17.12, compared to a current price of ¥12.86 — trading 24.9% below its estimated fair value. The current Operating Margin % is 18.65%, which is 62% above median its 10-year median of 11.54 and 186.7% above the Industrial Products industry median of 6.51. Avic Heavy Machinery Co's overall GF Score™ is 67/100 with 10 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 Avic Heavy Machinery Co (SHSE:600765), the current Operating Margin % is 18.65% 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 Avic Heavy Machinery Co (SHSE:600765) Overvalued in 2026?
Based on GuruFocus' analysis, Avic Heavy Machinery Co stock appears to be undervalued.
The current stock price of ¥12.86 is trading 24.9% below its estimated GF Value™ of ¥17.12.
GuruFocus considers Avic Heavy Machinery Co to be Modestly Undervalued.
Key valuation signals for SHSE:600765:
Operating Margin %: 18.65% (62% above median its 10-year median of 11.54)
GF Value™: ¥17.12 vs. price of ¥12.86 (24.9% below fair value)
Industry Position: 186.7% above the Industrial Products median (#903 of 3032)
No single metric tells the full story. See the SHSE:600765 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Avic Heavy Machinery Co Ltd is a China-based company engaged in the development, production, and sale of both military and civilian-used high-end equipment. It manufactures hydraulic parts, hydraulic systems, forging products, heat exchangers and gas turbines in China. The company operates in the business areas of Forging business, Hydraulic business, and New energy business. In the Forging business, the company mainly produces die forgings, free forgings, isothermal forgings and rings of different materials. In Hydraulic business, the main products are various types of heat exchangers, high-speed rotating machinery (turbine, pumps, fans), oil tanks, cooling devices, high-temperature insulation components.
67GF Score
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