SHSE:600835'
s Operating Margin % Range Over the Past 10 Years
Min: 5.16 Med: 7.01 Max: 11.09
Current: 5.27
SHSE:600835's Operating Margin % is ranked worse than 56.22% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs SHSE:600835: 5.27
Shanghai Mechanical & Electrical Industry Co (SHSE:600835) 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 Mechanical & Electrical Industry Co Operating Margin % Related Terms
Shanghai Mechanical & Electrical Industry 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 Mechanical & Electrical Industry Co Operating Margin % Chart
Shanghai Mechanical & Electrical Industry Co Annual Data
SHSE:600835 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Shanghai Mechanical & Electrical Industry 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 Mechanical & Electrical Industry Co Operating Margin % vs Industrial Products Industry
Shanghai Mechanical & Electrical Industry 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 Mechanical & Electrical Industry Co (SHSE:600835) has a Operating Margin % of 6.31% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai Mechanical & Electrical Industry Co and its competitors. This is 10% below median its historical median of 7.01. Over the past decade, Shanghai Mechanical & Electrical Industry Co's Operating Margin % has ranged from 5.16 to 11.09. According to the industry distribution chart, Shanghai Mechanical & Electrical Industry Co ranks #1708 out of 3038 companies in the Industrial Products industry, placing it in the top 56.2%.
Is Shanghai Mechanical & Electrical Industry Co's Operating Margin % too high?
Shanghai Mechanical & Electrical Industry Co's current Operating Margin % of 6.31% is 10% below median its 10-year median of 7.01. Over the past 10 years, this metric has ranged from a low of 5.16 to a high of 11.09. The Industrial Products industry median Operating Margin % is 6.53. Shanghai Mechanical & Electrical Industry Co's value of 6.31% is 3.4% below this industry median. Based on the distribution chart, Shanghai Mechanical & Electrical Industry Co ranks #1708 out of 3038 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shanghai Mechanical & Electrical Industry Co has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Mechanical & Electrical Industry Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shanghai Mechanical & Electrical Industry Co ranks #1708 out of 3038 companies for Operating Margin %. This places Shanghai Mechanical & Electrical Industry Co in the lower half of its industry. The industry median Operating Margin % is 6.53. Shanghai Mechanical & Electrical Industry Co's value of 6.31% is 3.4% below this benchmark. Historically, Shanghai Mechanical & Electrical Industry Co's own Operating Margin % has ranged from 5.16 to 11.09 over the past decade. While the company's 10-year median is 7.01 vs. the industry median of 6.53, Shanghai Mechanical & Electrical Industry 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 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 Mechanical & Electrical Industry Co's current Operating Margin % of 6.31% is 3.4% 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 Mechanical & Electrical Industry Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Mechanical & Electrical Industry Co's current Operating Margin % is 6.31%, which is 10% below median its own 10-year median of 7.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Mechanical & Electrical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Mechanical & Electrical Industry Co (SHSE:600835) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥16.44, compared to a current price of ¥20.85 — trading 26.8% above its estimated fair value. The current Operating Margin % is 6.31%, which is 10% below median its 10-year median of 7.01 and 3.4% below the Industrial Products industry median of 6.53. Shanghai Mechanical & Electrical Industry Co's overall GF Score™ is 63/100 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 Mechanical & Electrical Industry Co (SHSE:600835), the current Operating Margin % is 6.31% 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 Mechanical & Electrical Industry Co (SHSE:600835) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Mechanical & Electrical Industry Co stock appears to be overvalued.
The current stock price of ¥20.85 is trading 26.8% above its estimated GF Value™ of ¥16.44.
GuruFocus considers Shanghai Mechanical & Electrical Industry Co to be Modestly Overvalued.
Key valuation signals for SHSE:600835:
Operating Margin %: 6.31% (10% below median its 10-year median of 7.01)
GF Value™: ¥16.44 vs. price of ¥20.85 (26.8% above fair value)
Industry Position: 3.4% below the Industrial Products median (#1708 of 3038)
No single metric tells the full story. See the SHSE:600835 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Mechanical & Electrical Industry Co Business Description
Shanghai Mechanical & Electrical Industry Co Ltd mainly operates as a distributor and manufacturer of the mechanical and electrical equipment. It provides products such as escalators, printing and packaging machines, refrigeration and air conditioning and welding equipment, engineering machineries, wood-based panel machineries, energy engineering, hydraulic and pneumatic products and electrical equipment.
63GF Score
Get the complete analysis for SHSE:600835
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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