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Hangzhou XZB Tech CoSHSE:603040 +1.06%84 Operating Margin % is 36.25% as of Mar. 2026, which is 8% below its 10-year median of 39.50. GuruFocus rates SHSE:603040 with a GF Score™ of 84/100 and a GF Value™ of ¥24.04 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,320 Vehicles & Parts companies, Hangzhou XZB Tech Co ranks better than 99.32% on this metric.
Hangzhou XZB Tech Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.1%.
The historical rank and industry rank for Hangzhou XZB Tech Co's Operating Margin % or its related term are showing as below:
SHSE:603040'
s Operating Margin % Range Over the Past 10 Years
Min: 33.66 Med: 39.5 Max: 45.63
Current: 37.21
SHSE:603040's Operating Margin % is ranked better than 99.32% of 1320
companies
in the Vehicles & Parts industry
Industry Median: 4.89
vs SHSE:603040: 37.21
Hangzhou XZB Tech Co's 5-Year Average Operating Margin % Growth Rate was -4.10% per year.
Hangzhou XZB Tech Co (SHSE:603040) 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.
Hangzhou XZB Tech Co Operating Margin % Related Terms
Hangzhou XZB Tech Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Hangzhou XZB Tech 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:603040 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Hangzhou XZB Tech 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.
Hangzhou XZB Tech Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Hangzhou XZB Tech Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hangzhou XZB Tech Co's Operating Margin % falls into.
Hangzhou XZB Tech 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.
Hangzhou XZB Tech 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.
Hangzhou XZB Tech Co (SHSE:603040) has a Operating Margin % of 36.25% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hangzhou XZB Tech Co and its competitors. This is near median its historical median of 39.50. Over the past decade, Hangzhou XZB Tech Co's Operating Margin % has ranged from 33.66 to 45.63. According to the industry distribution chart, Hangzhou XZB Tech Co ranks #9 out of 1320 companies in the Vehicles & Parts industry, placing it in the top 0.7%.
Is Hangzhou XZB Tech Co's Operating Margin % too high?
Hangzhou XZB Tech Co's current Operating Margin % of 36.25% is near median its 10-year median of 39.50. Over the past 10 years, this metric has ranged from a low of 33.66 to a high of 45.63. The Vehicles & Parts industry median Operating Margin % is 4.89. Hangzhou XZB Tech Co's value of 36.25% is 641.3% above this industry median. Based on the distribution chart, Hangzhou XZB Tech Co ranks #9 out of 1320 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Hangzhou XZB Tech Co has a GF Score™ of 84/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou XZB Tech Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Hangzhou XZB Tech Co ranks #9 out of 1320 companies for Operating Margin %. This places Hangzhou XZB Tech Co in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.89. Hangzhou XZB Tech Co's value of 36.25% is 641.3% above this benchmark. Historically, Hangzhou XZB Tech Co's own Operating Margin % has ranged from 33.66 to 45.63 over the past decade. While the company's 10-year median is 39.50 vs. the industry median of 4.89, Hangzhou XZB Tech 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 a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.89, based on 1,320 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. Hangzhou XZB Tech Co's current Operating Margin % of 36.25% is 641.3% 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 Hangzhou XZB Tech Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou XZB Tech Co's current Operating Margin % is 36.25%, which is near median its own 10-year median of 39.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou XZB Tech Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou XZB Tech Co (SHSE:603040) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥24.04, compared to a current price of ¥52.20 — trading 117.1% above its estimated fair value. The current Operating Margin % is 36.25%, which is near median its 10-year median of 39.50 and 641.3% above the Vehicles & Parts industry median of 4.89. Hangzhou XZB Tech Co's overall GF Score™ is 84/100 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 Hangzhou XZB Tech Co (SHSE:603040), the current Operating Margin % is 36.25% 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 Hangzhou XZB Tech Co (SHSE:603040) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou XZB Tech Co stock appears to be overvalued.
The current stock price of ¥52.20 is trading 117.1% above its estimated GF Value™ of ¥24.04.
GuruFocus considers Hangzhou XZB Tech Co to be Significantly Overvalued.
Key valuation signals for SHSE:603040:
Operating Margin %: 36.25% (near median its 10-year median of 39.50)
GF Value™: ¥24.04 vs. price of ¥52.20 (117.1% above fair value)
Industry Position: 641.3% above the Vehicles & Parts median (#9 of 1320)
No single metric tells the full story. See the SHSE:603040 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou XZB Tech Co Ltd is a China based company engaged in the research and development of valve train systems and parts manufacturing in car industry. The products offered by the company includes valve cotters (collets), valve spring retainers, hydraulic lash adjusters and finger followers, push rods and tappets for heavy-duty diesel engines. In addition, the company also produces precision cold-forming components together with good service for power tools, household electrical appliance, aerospace, machinery and other applications.
84GF Score
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