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MeiHua Holdings Group CoSHSE:600873 +0.46%81 Operating Margin % is 2.44% as of Mar. 2026, which is 80% below its 10-year median of 12.19. GuruFocus rates SHSE:600873 with a GF Score™ of 81/100 and a GF Value™ of ¥10.23 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 1,578 Chemicals companies, MeiHua Holdings Group Co ranks better than 57.35% on this metric.
MeiHua Holdings Group Co (SHSE:600873) 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.
MeiHua Holdings Group Co Operating Margin % Related Terms
MeiHua Holdings Group 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.
SHSE:600873 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, MeiHua Holdings Group 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.
MeiHua Holdings Group Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, MeiHua Holdings Group Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where MeiHua Holdings Group Co's Operating Margin % falls into.
MeiHua Holdings Group 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.
MeiHua Holdings Group 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.
MeiHua Holdings Group Co (SHSE:600873) has a Operating Margin % of 2.44% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on MeiHua Holdings Group Co and its competitors. This is 80% below median its historical median of 12.19. Over the past decade, MeiHua Holdings Group Co's Operating Margin % has ranged from 7.65 to 18.60. According to the industry distribution chart, MeiHua Holdings Group Co ranks #673 out of 1578 companies in the Chemicals industry, placing it in the top 42.6%.
Is MeiHua Holdings Group Co's Operating Margin % too high?
MeiHua Holdings Group Co's current Operating Margin % of 2.44% is 80% below median its 10-year median of 12.19. Over the past 10 years, this metric has ranged from a low of 7.65 to a high of 18.60. The Chemicals industry median Operating Margin % is 6.04. MeiHua Holdings Group Co's value of 2.44% is 59.6% below this industry median. Based on the distribution chart, MeiHua Holdings Group Co ranks #673 out of 1578 companies in the Chemicals industry, which is above the industry midpoint. Overall, MeiHua Holdings Group Co has a GF Score™ of 81/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MeiHua Holdings Group Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, MeiHua Holdings Group Co ranks #673 out of 1578 companies for Operating Margin %. This puts MeiHua Holdings Group Co in the upper half of its industry. The industry median Operating Margin % is 6.04. MeiHua Holdings Group Co's value of 2.44% is 59.6% below this benchmark. Historically, MeiHua Holdings Group Co's own Operating Margin % has ranged from 7.65 to 18.60 over the past decade. While the company's 10-year median is 12.19 vs. the industry median of 6.04, MeiHua Holdings Group 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.04, based on 1,578 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. MeiHua Holdings Group Co's current Operating Margin % of 2.44% is 59.6% 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 MeiHua Holdings Group Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MeiHua Holdings Group Co's current Operating Margin % is 2.44%, which is 80% below median its own 10-year median of 12.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MeiHua Holdings Group Co stock overvalued right now?
Based on GuruFocus' analysis, MeiHua Holdings Group Co (SHSE:600873) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥10.23, compared to a current price of ¥8.82 — trading 13.8% below its estimated fair value. The current Operating Margin % is 2.44%, which is 80% below median its 10-year median of 12.19 and 59.6% below the Chemicals industry median of 6.04. MeiHua Holdings Group Co's overall GF Score™ is 81/100 with 1 warning sign 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 MeiHua Holdings Group Co (SHSE:600873), the current Operating Margin % is 2.44% 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 MeiHua Holdings Group Co (SHSE:600873) Overvalued in 2026?
Based on GuruFocus' analysis, MeiHua Holdings Group Co stock appears to be undervalued.
The current stock price of ¥8.82 is trading 13.8% below its estimated GF Value™ of ¥10.23.
GuruFocus considers MeiHua Holdings Group Co to be Modestly Undervalued.
Key valuation signals for SHSE:600873:
Operating Margin %: 2.44% (80% below median its 10-year median of 12.19)
GF Value™: ¥10.23 vs. price of ¥8.82 (13.8% below fair value)
Industry Position: 59.6% below the Chemicals median (#673 of 1578)
No single metric tells the full story. See the SHSE:600873 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MeiHua Holdings Group Co Ltd is a China-based supplier of amino acid nutrition and health solution. Its products include Food additives, condiment, colloid, Amino acids, capsule, fertilizer, bulk by-products (such as corn germ and protein powder) and among others. The company mainly operates its businesses in the domestic and overseas markets.
81GF 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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