Shanxi Lu'an Environmental Energy Development Co (SHSE:601699) Operating Margin %: 11.99% (As of Mar. 2026) — 35% Below Median

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SHSE:601699 Shanxi Lu'an Environmental Energy Development Co Ltd SHSE:601699
77 GF Score
Price ¥15.14
GF Value ¥12.16
Valuation Modestly Overvalued
! 7 Warning Signs
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What is Shanxi Lu'an Environmental Energy Development Co Operating Margin %?

Shanxi Lu'an Environmental Energy Development Co SHSE:601699 -5.14% 77 Operating Margin % is 11.99% as of Mar. 2026, which is 35% below its 10-year median of 18.36. GuruFocus rates SHSE:601699 with a GF Score™ of 77/100 and a GF Value™ of ¥12.16 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 130 Other Energy Sources companies, Shanxi Lu'an Environmental Energy Development Co ranks better than 52.31% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Shanxi Lu'an Environmental Energy Development Co's Operating Income for the three months ended in Mar. 2026 was ¥871 Mil. Shanxi Lu'an Environmental Energy Development Co's Revenue for the three months ended in Mar. 2026 was ¥7,263 Mil. Therefore, Shanxi Lu'an Environmental Energy Development Co's Operating Margin % for the quarter that ended in Mar. 2026 was 11.99%.

Warning Sign:

Shanxi Lu'an Environmental Energy Development Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -20.9%.

The historical rank and industry rank for Shanxi Lu'an Environmental Energy Development Co's Operating Margin % or its related term are showing as below:

SHSE:601699' s Operating Margin % Range Over the Past 10 Years
Min: 4.9   Med: 18.36   Max: 39.05
Current: 4.9


SHSE:601699's Operating Margin % is ranked better than
52.31% of 130 companies
in the Other Energy Sources industry
Industry Median: 4.57 vs SHSE:601699: 4.90

Shanxi Lu'an Environmental Energy Development Co's 5-Year Average Operating Margin % Growth Rate was -20.90% per year.

Shanxi Lu'an Environmental Energy Development Co's Operating Income for the three months ended in Mar. 2026 was ¥871 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥1,377 Mil.


Shanxi Lu'an Environmental Energy Development Co  (SHSE:601699) 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 Nokia’s 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.


Shanxi Lu'an Environmental Energy Development Co Operating Margin % Related Terms


Shanxi Lu'an Environmental Energy Development Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Shanxi Lu'an Environmental Energy Development 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.

Shanxi Lu'an Environmental Energy Development Co Operating Margin % Chart

Shanxi Lu'an Environmental Energy Development Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.03 39.05 27.31 12.88 4.96

Shanxi Lu'an Environmental Energy Development Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.54 11.72 3.85 -8.87 11.99

Shanxi Lu'an Environmental Energy Development Co Operating Margin % Competitor Comparison

For the Thermal Coal subindustry, Shanxi Lu'an Environmental Energy Development 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.


Shanxi Lu'an Environmental Energy Development Co Operating Margin % vs Other Energy Sources Industry

For the Other Energy Sources industry and Energy sector, Shanxi Lu'an Environmental Energy Development Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Shanxi Lu'an Environmental Energy Development Co's Operating Margin % falls into.


SHSE:601699
77GF Score
Shanxi Lu'an Environmental Energy Development Co Ltd SHSE:601699
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Shanxi Lu'an Environmental Energy Development 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.

Shanxi Lu'an Environmental Energy Development Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=1380.359 / 27820.028
=4.96 %

Shanxi Lu'an Environmental Energy Development Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=870.877 / 7262.884
=11.99 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 11.99% mean?
Shanxi Lu'an Environmental Energy Development Co (SHSE:601699) has a Operating Margin % of 11.99% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanxi Lu'an Environmental Energy Development Co and its competitors. This is 35% below median its historical median of 18.36. Over the past decade, Shanxi Lu'an Environmental Energy Development Co's Operating Margin % has ranged from 4.90 to 39.05. According to the industry distribution chart, Shanxi Lu'an Environmental Energy Development Co ranks #62 out of 130 companies in the Other Energy Sources industry, placing it in the top 47.7%.
Is Shanxi Lu'an Environmental Energy Development Co's Operating Margin % too high?
Shanxi Lu'an Environmental Energy Development Co's current Operating Margin % of 11.99% is 35% below median its 10-year median of 18.36. Over the past 10 years, this metric has ranged from a low of 4.90 to a high of 39.05. The Other Energy Sources industry median Operating Margin % is 4.57. Shanxi Lu'an Environmental Energy Development Co's value of 11.99% is 162.4% above this industry median. Based on the distribution chart, Shanxi Lu'an Environmental Energy Development Co ranks #62 out of 130 companies in the Other Energy Sources industry, which is above the industry midpoint. Overall, Shanxi Lu'an Environmental Energy Development Co has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanxi Lu'an Environmental Energy Development Co's Operating Margin % compare to competitors?
According to the Other Energy Sources industry distribution chart, Shanxi Lu'an Environmental Energy Development Co ranks #62 out of 130 companies for Operating Margin %. This puts Shanxi Lu'an Environmental Energy Development Co in the upper half of its industry. The industry median Operating Margin % is 4.57. Shanxi Lu'an Environmental Energy Development Co's value of 11.99% is 162.4% above this benchmark. Historically, Shanxi Lu'an Environmental Energy Development Co's own Operating Margin % has ranged from 4.90 to 39.05 over the past decade. While the company's 10-year median is 18.36 vs. the industry median of 4.57, Shanxi Lu'an Environmental Energy Development 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 Other Energy Sources company?
The median Operating Margin % among Other Energy Sources companies is 4.57, based on 130 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. Shanxi Lu'an Environmental Energy Development Co's current Operating Margin % of 11.99% is 162.4% 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 Shanxi Lu'an Environmental Energy Development Co and its competitors. For the Other Energy Sources industry, the median Operating Margin % is 4.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanxi Lu'an Environmental Energy Development Co's current Operating Margin % is 11.99%, which is 35% below median its own 10-year median of 18.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanxi Lu'an Environmental Energy Development Co stock overvalued right now?
Based on GuruFocus' analysis, Shanxi Lu'an Environmental Energy Development Co (SHSE:601699) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥12.16, compared to a current price of ¥15.14 — trading 24.5% above its estimated fair value. The current Operating Margin % is 11.99%, which is 35% below median its 10-year median of 18.36 and 162.4% above the Other Energy Sources industry median of 4.57. Shanxi Lu'an Environmental Energy Development Co's overall GF Score™ is 77/100 with 7 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 Shanxi Lu'an Environmental Energy Development Co (SHSE:601699), the current Operating Margin % is 11.99% 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 Shanxi Lu'an Environmental Energy Development Co (SHSE:601699) Overvalued in 2026?

Based on GuruFocus' analysis, Shanxi Lu'an Environmental Energy Development Co stock appears to be overvalued. The current stock price of ¥15.14 is trading 24.5% above its estimated GF Value™ of ¥12.16. GuruFocus considers Shanxi Lu'an Environmental Energy Development Co to be Modestly Overvalued.

Key valuation signals for SHSE:601699:

  • Operating Margin %: 11.99% (35% below median its 10-year median of 18.36)
  • GF Value™: ¥12.16 vs. price of ¥15.14 (24.5% above fair value)
  • GF Score™: 77/100 with 7 warning signs
  • Industry Position: 162.4% above the Other Energy Sources median (#62 of 130)

No single metric tells the full story. See the SHSE:601699 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Shanxi Lu'an Environmental Energy Development Co Business Description

Address No. 65, Chengbei East Street, Houbao Town, Xiangyuan County, Shanxi Province, Changzhi, CHN, 046204
Shanxi Lu'an Environmental Energy Development Co Ltd is a Chinese company engaged in the mining, processing, and distribution of coal. The company is engaged in the production and sale of coal and coke products. The company mainly conducts business in the domestic market.
77GF Score

Get the complete analysis for SHSE:601699

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥15.14
Price
¥12.16
GF Value