Shanghai Tunnel Engineering CoSHSE:600820 +0.38%65 Operating Margin % is 4.91% as of Mar. 2026, which is 12% below its 10-year median of 5.56. GuruFocus rates SHSE:600820 with a GF Score™ of 65/100 and a GF Value™ of ¥4.65 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,767 Construction companies, Shanghai Tunnel Engineering Co ranks better than 51.95% on this metric.
Shanghai Tunnel Engineering Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Shanghai Tunnel Engineering Co's Operating Margin % or its related term are showing as below:
SHSE:600820'
s Operating Margin % Range Over the Past 10 Years
Min: 3.75 Med: 5.56 Max: 7.19
Current: 6.26
SHSE:600820's Operating Margin % is ranked better than 51.95% of 1767
companies
in the Construction industry
Industry Median: 5.89
vs SHSE:600820: 6.26
Shanghai Tunnel Engineering Co (SHSE:600820) 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 Tunnel Engineering Co Operating Margin % Related Terms
Shanghai Tunnel Engineering 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.
Shanghai Tunnel Engineering Co Operating Margin % Chart
SHSE:600820 vs PWR, FIX, EME: Operating Margin % Comparison
For the Engineering & Construction subindustry, Shanghai Tunnel Engineering 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 Tunnel Engineering Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Shanghai Tunnel Engineering Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Tunnel Engineering Co's Operating Margin % falls into.
Shanghai Tunnel Engineering 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.
Shanghai Tunnel Engineering Co (SHSE:600820) has a Operating Margin % of 4.91% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai Tunnel Engineering Co and its competitors. This is 12% below median its historical median of 5.56. Over the past decade, Shanghai Tunnel Engineering Co's Operating Margin % has ranged from 3.75 to 7.19. According to the industry distribution chart, Shanghai Tunnel Engineering Co ranks #849 out of 1767 companies in the Construction industry, placing it in the top 48%.
Is Shanghai Tunnel Engineering Co's Operating Margin % too high?
Shanghai Tunnel Engineering Co's current Operating Margin % of 4.91% is 12% below median its 10-year median of 5.56. Over the past 10 years, this metric has ranged from a low of 3.75 to a high of 7.19. The Construction industry median Operating Margin % is 5.89. Shanghai Tunnel Engineering Co's value of 4.91% is 16.6% below this industry median. Based on the distribution chart, Shanghai Tunnel Engineering Co ranks #849 out of 1767 companies in the Construction industry, which is above the industry midpoint. Overall, Shanghai Tunnel Engineering Co has a GF Score™ of 65/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Tunnel Engineering Co's Operating Margin % compare to PWR and FIX?
According to the Construction industry distribution chart, Shanghai Tunnel Engineering Co ranks #849 out of 1767 companies for Operating Margin %. This puts Shanghai Tunnel Engineering Co in the upper half of its industry. The industry median Operating Margin % is 5.89. Shanghai Tunnel Engineering Co's value of 4.91% is 16.6% below this benchmark. Historically, Shanghai Tunnel Engineering Co's own Operating Margin % has ranged from 3.75 to 7.19 over the past decade. While the company's 10-year median is 5.56 vs. the industry median of 5.89, Shanghai Tunnel Engineering Co has consistently been below 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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 Tunnel Engineering Co's current Operating Margin % of 4.91% is 16.6% below 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 Tunnel Engineering Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Tunnel Engineering Co's current Operating Margin % is 4.91%, which is 12% below median its own 10-year median of 5.56. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Tunnel Engineering Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Tunnel Engineering Co (SHSE:600820) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥4.65, compared to a current price of ¥5.27 — trading 13.3% above its estimated fair value. The current Operating Margin % is 4.91%, which is 12% below median its 10-year median of 5.56 and 16.6% below the Construction industry median of 5.89. Shanghai Tunnel Engineering Co's overall GF Score™ is 65/100 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 Shanghai Tunnel Engineering Co (SHSE:600820), the current Operating Margin % is 4.91% 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 Tunnel Engineering Co (SHSE:600820) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Tunnel Engineering Co stock appears to be overvalued.
The current stock price of ¥5.27 is trading 13.3% above its estimated GF Value™ of ¥4.65.
GuruFocus considers Shanghai Tunnel Engineering Co to be Modestly Overvalued.
Key valuation signals for SHSE:600820:
Operating Margin %: 4.91% (12% below median its 10-year median of 5.56)
GF Value™: ¥4.65 vs. price of ¥5.27 (13.3% above fair value)
Industry Position: 16.6% below the Construction median (#849 of 1767)
No single metric tells the full story. See the SHSE:600820 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Tunnel Engineering Co Business Description
Shanghai Tunnel Engineering Co Ltd is a China-based engineering & construction company. It is engaged in the construction of railways, highways, tunnels and bridges, real estate, water service, green material.
65GF 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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