Universal Scientific Industrial (Shanghai) Co (SHSE:601231) 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.
Universal Scientific Industrial (Shanghai) Co Operating Margin % Related Terms
Universal Scientific Industrial (Shanghai) 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.
Universal Scientific Industrial (Shanghai) Co Operating Margin % Chart
Universal Scientific Industrial (Shanghai) Co Annual Data
SHSE:601231 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Universal Scientific Industrial (Shanghai) 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.
Universal Scientific Industrial (Shanghai) Co Operating Margin % vs Hardware Industry
Universal Scientific Industrial (Shanghai) 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.
Universal Scientific Industrial (Shanghai) Co (SHSE:601231) has a Operating Margin % of 3.69% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Universal Scientific Industrial (Shanghai) Co and its competitors. This is near median its historical median of 4.01. Over the past decade, Universal Scientific Industrial (Shanghai) Co's Operating Margin % has ranged from 3.29 to 4.98. According to the industry distribution chart, Universal Scientific Industrial (Shanghai) Co ranks #1259 out of 2472 companies in the Hardware industry, placing it in the top 50.9%.
Is Universal Scientific Industrial (Shanghai) Co's Operating Margin % too high?
Universal Scientific Industrial (Shanghai) Co's current Operating Margin % of 3.69% is near median its 10-year median of 4.01. Over the past 10 years, this metric has ranged from a low of 3.29 to a high of 4.98. The Hardware industry median Operating Margin % is 3.81. Universal Scientific Industrial (Shanghai) Co's value of 3.69% is 3.1% below this industry median. Based on the distribution chart, Universal Scientific Industrial (Shanghai) Co ranks #1259 out of 2472 companies in the Hardware industry, which is below the industry midpoint. Overall, Universal Scientific Industrial (Shanghai) Co has a GF Score™ of 76/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Universal Scientific Industrial (Shanghai) Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Universal Scientific Industrial (Shanghai) Co ranks #1259 out of 2472 companies for Operating Margin %. This places Universal Scientific Industrial (Shanghai) Co in the lower half of its industry. The industry median Operating Margin % is 3.81. Universal Scientific Industrial (Shanghai) Co's value of 3.69% is 3.1% below this benchmark. Historically, Universal Scientific Industrial (Shanghai) Co's own Operating Margin % has ranged from 3.29 to 4.98 over the past decade. While the company's 10-year median is 4.01 vs. the industry median of 3.81, Universal Scientific Industrial (Shanghai) 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. Universal Scientific Industrial (Shanghai) Co's current Operating Margin % of 3.69% is 3.1% 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 Universal Scientific Industrial (Shanghai) Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Universal Scientific Industrial (Shanghai) Co's current Operating Margin % is 3.69%, which is near median its own 10-year median of 4.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Universal Scientific Industrial (Shanghai) Co stock overvalued right now?
Based on GuruFocus' analysis, Universal Scientific Industrial (Shanghai) Co (SHSE:601231) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.15, compared to a current price of ¥32.94 — trading 117.4% above its estimated fair value. The current Operating Margin % is 3.69%, which is near median its 10-year median of 4.01 and 3.1% below the Hardware industry median of 3.81. Universal Scientific Industrial (Shanghai) Co's overall GF Score™ is 76/100 with 3 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 Universal Scientific Industrial (Shanghai) Co (SHSE:601231), the current Operating Margin % is 3.69% 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 Universal Scientific Industrial (Shanghai) Co (SHSE:601231) Overvalued in 2026?
Based on GuruFocus' analysis, Universal Scientific Industrial (Shanghai) Co stock appears to be overvalued.
The current stock price of ¥32.94 is trading 117.4% above its estimated GF Value™ of ¥15.15.
GuruFocus considers Universal Scientific Industrial (Shanghai) Co to be Significantly Overvalued.
Key valuation signals for SHSE:601231:
Operating Margin %: 3.69% (near median its 10-year median of 4.01)
GF Value™: ¥15.15 vs. price of ¥32.94 (117.4% above fair value)
Industry Position: 3.1% below the Hardware median (#1259 of 2472)
No single metric tells the full story. See the SHSE:601231 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Universal Scientific Industrial (Shanghai) Co Business Description
Universal Scientific Industrial (Shanghai) Co Ltd provides electronics manufacturing service industry, and its products are mainly used in consumer electronics, cloud storage, industrial, automotive electronics, and medical industries. The Company's service products, business layout, and operations are characterized by modularization, diversification, and globalization. The company's sales service network spans North America, Europe, Japan, China, Taiwan, and has manufacturing sites in China, Taiwan, Korea, and Mexico.
76GF 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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