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Jiangsu Hengshang Energy Conservation Technology Co (SHSE:603137) 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.
Jiangsu Hengshang Energy Conservation Technology Co Operating Margin % Related Terms
Jiangsu Hengshang Energy Conservation Technology 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.
Jiangsu Hengshang Energy Conservation Technology Co Operating Margin % Chart
Jiangsu Hengshang Energy Conservation Technology Co Annual Data
SHSE:603137 vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Jiangsu Hengshang Energy Conservation Technology 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.
Jiangsu Hengshang Energy Conservation Technology Co Operating Margin % vs Construction Industry
Jiangsu Hengshang Energy Conservation Technology 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.
Jiangsu Hengshang Energy Conservation Technology Co (SHSE:603137) has a Operating Margin % of 5.40% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Jiangsu Hengshang Energy Conservation Technology Co and its competitors. This is 28% below median its historical median of 7.45. Over the past decade, Jiangsu Hengshang Energy Conservation Technology Co's Operating Margin % has ranged from 3.73 to 9.25. According to the industry distribution chart, Jiangsu Hengshang Energy Conservation Technology Co ranks #1109 out of 1766 companies in the Construction industry, placing it in the top 62.8%.
Is Jiangsu Hengshang Energy Conservation Technology Co's Operating Margin % too high?
Jiangsu Hengshang Energy Conservation Technology Co's current Operating Margin % of 5.40% is 28% below median its 10-year median of 7.45. Over the past 10 years, this metric has ranged from a low of 3.73 to a high of 9.25. The Construction industry median Operating Margin % is 5.89. Jiangsu Hengshang Energy Conservation Technology Co's value of 5.40% is 8.3% below this industry median. Based on the distribution chart, Jiangsu Hengshang Energy Conservation Technology Co ranks #1109 out of 1766 companies in the Construction industry, which is below the industry midpoint. Overall, Jiangsu Hengshang Energy Conservation Technology Co has a GF Score™ of 57/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Hengshang Energy Conservation Technology Co's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Jiangsu Hengshang Energy Conservation Technology Co ranks #1109 out of 1766 companies for Operating Margin %. This places Jiangsu Hengshang Energy Conservation Technology Co in the lower half of its industry. The industry median Operating Margin % is 5.89. Jiangsu Hengshang Energy Conservation Technology Co's value of 5.40% is 8.3% below this benchmark. Historically, Jiangsu Hengshang Energy Conservation Technology Co's own Operating Margin % has ranged from 3.73 to 9.25 over the past decade. While the company's 10-year median is 7.45 vs. the industry median of 5.89, Jiangsu Hengshang Energy Conservation Technology 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,766 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. Jiangsu Hengshang Energy Conservation Technology Co's current Operating Margin % of 5.40% is 8.3% 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 Jiangsu Hengshang Energy Conservation Technology Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Hengshang Energy Conservation Technology Co's current Operating Margin % is 5.40%, which is 28% below median its own 10-year median of 7.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Hengshang Energy Conservation Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Hengshang Energy Conservation Technology Co (SHSE:603137) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥6.25, compared to a current price of ¥28.61 — trading 357.8% above its estimated fair value. The current Operating Margin % is 5.40%, which is 28% below median its 10-year median of 7.45 and 8.3% below the Construction industry median of 5.89. Jiangsu Hengshang Energy Conservation Technology Co's overall GF Score™ is 57/100 with 13 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 Jiangsu Hengshang Energy Conservation Technology Co (SHSE:603137), the current Operating Margin % is 5.40% 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 Jiangsu Hengshang Energy Conservation Technology Co (SHSE:603137) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Hengshang Energy Conservation Technology Co stock appears to be overvalued.
The current stock price of ¥28.61 is trading 357.8% above its estimated GF Value™ of ¥6.25.
GuruFocus considers Jiangsu Hengshang Energy Conservation Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:603137:
Operating Margin %: 5.40% (28% below median its 10-year median of 7.45)
GF Value™: ¥6.25 vs. price of ¥28.61 (357.8% above fair value)
Industry Position: 8.3% below the Construction median (#1109 of 1766)
No single metric tells the full story. See the SHSE:603137 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Hengshang Energy Conservation Technology Co Business Description
Jiangsu Hengshang Energy Conservation Technology Co Ltd is engaged in the Design, manufacture, and construction of building curtain walls, doors, skylights, steel structures, and window engineering. The company undertakes the design, installation, and construction of indoor and outdoor decoration projects and mechanical and electrical installations.
57GF 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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