Shenzhen Goodix Technology Co (SHSE:603160) 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.
Shenzhen Goodix Technology Co Operating Margin % Related Terms
Shenzhen Goodix 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.
Shenzhen Goodix Technology Co Operating Margin % Chart
SHSE:603160 vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, Shenzhen Goodix 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.
Shenzhen Goodix Technology Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, Shenzhen Goodix Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shenzhen Goodix Technology Co's Operating Margin % falls into.
Shenzhen Goodix 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.
Shenzhen Goodix Technology Co (SHSE:603160) has a Operating Margin % of 9.09% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shenzhen Goodix Technology Co and its competitors. This is 48% below median its historical median of 17.45. According to the industry distribution chart, Shenzhen Goodix Technology Co ranks #561 out of 2817 companies in the Software industry, placing it in the top 19.9%.
Is Shenzhen Goodix Technology Co's Operating Margin % too high?
Shenzhen Goodix Technology Co's current Operating Margin % of 9.09% is 48% below median its 10-year median of 17.45. The Software industry median Operating Margin % is 3.79. Shenzhen Goodix Technology Co's value of 9.09% is 139.8% above this industry median. Based on the distribution chart, Shenzhen Goodix Technology Co ranks #561 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Shenzhen Goodix Technology Co has a GF Score™ of 73/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Goodix Technology Co's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Shenzhen Goodix Technology Co ranks #561 out of 2817 companies for Operating Margin %. This places Shenzhen Goodix Technology Co in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.79. Shenzhen Goodix Technology Co's value of 9.09% is 139.8% above this benchmark. While the company's 10-year median is 17.45 vs. the industry median of 3.79, Shenzhen Goodix Technology 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 Software company?
The median Operating Margin % among Software companies is 3.79, based on 2,817 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. Shenzhen Goodix Technology Co's current Operating Margin % of 9.09% is 139.8% 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 Shenzhen Goodix Technology Co and its competitors. For the Software industry, the median Operating Margin % is 3.79 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Goodix Technology Co's current Operating Margin % is 9.09%, which is 48% below median its own 10-year median of 17.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Goodix Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Goodix Technology Co (SHSE:603160) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥78.03, compared to a current price of ¥57.80 — trading 25.9% below its estimated fair value. The current Operating Margin % is 9.09%, which is 48% below median its 10-year median of 17.45 and 139.8% above the Software industry median of 3.79. Shenzhen Goodix Technology Co's overall GF Score™ is 73/100 with 3 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 Shenzhen Goodix Technology Co (SHSE:603160), the current Operating Margin % is 9.09% 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 Shenzhen Goodix Technology Co (SHSE:603160) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Goodix Technology Co stock appears to be undervalued.
The current stock price of ¥57.80 is trading 25.9% below its estimated GF Value™ of ¥78.03.
GuruFocus considers Shenzhen Goodix Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:603160:
Operating Margin %: 9.09% (48% below median its 10-year median of 17.45)
GF Value™: ¥78.03 vs. price of ¥57.80 (25.9% below fair value)
Industry Position: 139.8% above the Software median (#561 of 2817)
No single metric tells the full story. See the SHSE:603160 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Goodix Technology Co Business Description
Shenzhen Goodix Technology Co Ltd is a China-based company mainly engaged in the research and development of chips. The company develops capacitive touch controllers and fingerprint recognition chips, serving applications in smart devices, IoT, and automotive electronics. It is also engaged in software development. The company's products and solutions are used by various mobile brands Huawei, OPPO, Vivo, Xiaomi, Amazon, Samsung, Dell, Nokia, LG, ASUS, and others.
73GF Score
Get the complete analysis for SHSE:603160
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:603160 has been successfully added to your 
