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China Merchants Energy Shipping Co (SHSE:601872) 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.
China Merchants Energy Shipping Co Operating Margin % Related Terms
China Merchants Energy Shipping 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.
China Merchants Energy Shipping Co Operating Margin % Chart
SHSE:601872 vs WMB, EPD, KMI: Operating Margin % Comparison
For the Oil & Gas Midstream subindustry, China Merchants Energy Shipping 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.
China Merchants Energy Shipping Co Operating Margin % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, China Merchants Energy Shipping Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Merchants Energy Shipping Co's Operating Margin % falls into.
China Merchants Energy Shipping 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.
China Merchants Energy Shipping Co (SHSE:601872) has a Operating Margin % of 38.82% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on China Merchants Energy Shipping Co and its competitors. This is 105% above median its historical median of 18.92. Over the past decade, China Merchants Energy Shipping Co's Operating Margin % has ranged from 13.92 to 35.97. According to the industry distribution chart, China Merchants Energy Shipping Co ranks #166 out of 916 companies in the Oil & Gas industry, placing it in the top 18.1%.
Is China Merchants Energy Shipping Co's Operating Margin % too high?
China Merchants Energy Shipping Co's current Operating Margin % of 38.82% is 105% above median its 10-year median of 18.92. Over the past 10 years, this metric has ranged from a low of 13.92 to a high of 35.97. The Oil & Gas industry median Operating Margin % is 6.91. China Merchants Energy Shipping Co's value of 38.82% is 462.2% above this industry median. Based on the distribution chart, China Merchants Energy Shipping Co ranks #166 out of 916 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, China Merchants Energy Shipping Co has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Energy Shipping Co's Operating Margin % compare to WMB and EPD?
According to the Oil & Gas industry distribution chart, China Merchants Energy Shipping Co ranks #166 out of 916 companies for Operating Margin %. This places China Merchants Energy Shipping Co in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.91. China Merchants Energy Shipping Co's value of 38.82% is 462.2% above this benchmark. Historically, China Merchants Energy Shipping Co's own Operating Margin % has ranged from 13.92 to 35.97 over the past decade. While the company's 10-year median is 18.92 vs. the industry median of 6.91, China Merchants Energy Shipping 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 Oil & Gas company?
The median Operating Margin % among Oil & Gas companies is 6.91, based on 916 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. China Merchants Energy Shipping Co's current Operating Margin % of 38.82% is 462.2% 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 China Merchants Energy Shipping Co and its competitors. For the Oil & Gas industry, the median Operating Margin % is 6.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Energy Shipping Co's current Operating Margin % is 38.82%, which is 105% above median its own 10-year median of 18.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Energy Shipping Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Energy Shipping Co (SHSE:601872) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥8.60, compared to a current price of ¥15.70 — trading 82.6% above its estimated fair value. The current Operating Margin % is 38.82%, which is 105% above median its 10-year median of 18.92 and 462.2% above the Oil & Gas industry median of 6.91. China Merchants Energy Shipping Co's overall GF Score™ is 63/100 with 2 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 China Merchants Energy Shipping Co (SHSE:601872), the current Operating Margin % is 38.82% 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 China Merchants Energy Shipping Co (SHSE:601872) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Energy Shipping Co stock appears to be overvalued.
The current stock price of ¥15.70 is trading 82.6% above its estimated GF Value™ of ¥8.60.
GuruFocus considers China Merchants Energy Shipping Co to be Significantly Overvalued.
Key valuation signals for SHSE:601872:
Operating Margin %: 38.82% (105% above median its 10-year median of 18.92)
GF Value™: ¥8.60 vs. price of ¥15.70 (82.6% above fair value)
Industry Position: 462.2% above the Oil & Gas median (#166 of 916)
No single metric tells the full story. See the SHSE:601872 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Energy Shipping Co Business Description
China Merchants Energy Shipping Co Ltd is a China-based company that engages in tanker transportation, bulk cargo vessel transportation, and liquid natural gas (LNG) vessel transportation. It provides a full range of energy transportation services running a large diversity of vessels, including crude oil tankers, dry bulk carriers, and LNG carriers. It provides services to customers from China, Japan, Korea, Southeast Asia, the United States, and other countries.
63GF 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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