Lanpec Technologies Co (SHSE:601798) 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.
Lanpec Technologies Co Operating Margin % Related Terms
Lanpec Technologies Co Operating Margin % Historical Data
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The historical data trend for Lanpec Technologies 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.
SHSE:601798 vs SLB, BKR, HAL: Operating Margin % Comparison
For the Oil & Gas Equipment & Services subindustry, Lanpec Technologies 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.
Lanpec Technologies Co Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Lanpec Technologies Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lanpec Technologies Co's Operating Margin % falls into.
Lanpec Technologies 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.
Lanpec Technologies 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.
Lanpec Technologies Co (SHSE:601798) has a Operating Margin % of 7.64% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Lanpec Technologies Co and its competitors. According to the industry distribution chart, Lanpec Technologies Co ranks #461 out of 921 companies in the Oil & Gas industry, placing it in the top 50.1%.
Is Lanpec Technologies Co's Operating Margin % too high?
Lanpec Technologies Co's current Operating Margin % is 7.64%. The Oil & Gas industry median Operating Margin % is 6.85. Lanpec Technologies Co's value of 7.64% is 11.5% above this industry median. Based on the distribution chart, Lanpec Technologies Co ranks #461 out of 921 companies in the Oil & Gas industry, which is below the industry midpoint. Overall, Lanpec Technologies Co has a GF Score™ of 57/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Lanpec Technologies Co's Operating Margin % compare to SLB and BKR?
According to the Oil & Gas industry distribution chart, Lanpec Technologies Co ranks #461 out of 921 companies for Operating Margin %. This places Lanpec Technologies Co in the lower half of its industry. The industry median Operating Margin % is 6.85. Lanpec Technologies Co's value of 7.64% is 11.5% above this benchmark. 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 Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.85, based on 921 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. Lanpec Technologies Co's current Operating Margin % of 7.64% is 11.5% 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 Lanpec Technologies Co and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lanpec Technologies Co's current Operating Margin % is 7.64%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lanpec Technologies Co stock overvalued right now?
Based on GuruFocus' analysis, Lanpec Technologies Co (SHSE:601798) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥8.55, compared to a current price of ¥7.61 — trading 11% below its estimated fair value. The current Operating Margin % is 7.64% and 11.5% above the Oil & Gas industry median of 6.85. Lanpec Technologies Co's overall GF Score™ is 57/100 with 4 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 Lanpec Technologies Co (SHSE:601798), the current Operating Margin % is 7.64% 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 Lanpec Technologies Co (SHSE:601798) Overvalued in 2026?
Based on GuruFocus' analysis, Lanpec Technologies Co stock appears to be undervalued.
The current stock price of ¥7.61 is trading 11% below its estimated GF Value™ of ¥8.55.
GuruFocus considers Lanpec Technologies Co to be Modestly Undervalued.
Key valuation signals for SHSE:601798:
Operating Margin %: 7.64%
GF Value™: ¥8.55 vs. price of ¥7.61 (11% below fair value)
Industry Position: 11.5% above the Oil & Gas median (#461 of 921)
No single metric tells the full story. See the SHSE:601798 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lanpec Technologies Co Ltd is engaged in the oil drilling machinery and equipment, refining and chemical equipment, marine and desert petroleum equipment and engineering, refining and chemical processing, and light industry and food machinery research.
57GF Score
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