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Shanghai Xiao Fang Pharmaceutical CoSHSE:603207 +1.72%38 Operating Margin % is 45.10% as of Mar. 2026, which is 8% below its 10-year median of 48.99. GuruFocus rates SHSE:603207 with a GF Score™ of 38/100. The stock has 2 warning signs investors should review. Among 960 Drug Manufacturers companies, Shanghai Xiao Fang Pharmaceutical Co ranks better than 98.23% on this metric.
SHSE:603207'
s Operating Margin % Range Over the Past 10 Years
Min: 37.59 Med: 48.99 Max: 50.6
Current: 43.89
SHSE:603207's Operating Margin % is ranked better than 98.23% of 960
companies
in the Drug Manufacturers industry
Industry Median: 7.51
vs SHSE:603207: 43.89
Shanghai Xiao Fang Pharmaceutical Co (SHSE:603207) 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.
Shanghai Xiao Fang Pharmaceutical Co Operating Margin % Related Terms
Shanghai Xiao Fang Pharmaceutical 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.
Shanghai Xiao Fang Pharmaceutical Co Operating Margin % Chart
For the Drug Manufacturers - Specialty & Generic subindustry, Shanghai Xiao Fang Pharmaceutical 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.
Shanghai Xiao Fang Pharmaceutical Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Shanghai Xiao Fang Pharmaceutical Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Xiao Fang Pharmaceutical Co's Operating Margin % falls into.
Shanghai Xiao Fang Pharmaceutical 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.
Shanghai Xiao Fang Pharmaceutical Co (SHSE:603207) has a Operating Margin % of 45.10% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai Xiao Fang Pharmaceutical Co and its competitors. This is near median its historical median of 48.99. Over the past decade, Shanghai Xiao Fang Pharmaceutical Co's Operating Margin % has ranged from 37.59 to 50.60. According to the industry distribution chart, Shanghai Xiao Fang Pharmaceutical Co ranks #17 out of 960 companies in the Drug Manufacturers industry, placing it in the top 1.8%.
Is Shanghai Xiao Fang Pharmaceutical Co's Operating Margin % too high?
Shanghai Xiao Fang Pharmaceutical Co's current Operating Margin % of 45.10% is near median its 10-year median of 48.99. Over the past 10 years, this metric has ranged from a low of 37.59 to a high of 50.60. The Drug Manufacturers industry median Operating Margin % is 7.51. Shanghai Xiao Fang Pharmaceutical Co's value of 45.10% is 500.5% above this industry median. Based on the distribution chart, Shanghai Xiao Fang Pharmaceutical Co ranks #17 out of 960 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Shanghai Xiao Fang Pharmaceutical Co has a GF Score™ of 38/100, reflecting its overall financial health beyond just this single metric.
How does Shanghai Xiao Fang Pharmaceutical Co's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Shanghai Xiao Fang Pharmaceutical Co ranks #17 out of 960 companies for Operating Margin %. This places Shanghai Xiao Fang Pharmaceutical Co in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.51. Shanghai Xiao Fang Pharmaceutical Co's value of 45.10% is 500.5% above this benchmark. Historically, Shanghai Xiao Fang Pharmaceutical Co's own Operating Margin % has ranged from 37.59 to 50.60 over the past decade. While the company's 10-year median is 48.99 vs. the industry median of 7.51, Shanghai Xiao Fang Pharmaceutical 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.51, based on 960 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. Shanghai Xiao Fang Pharmaceutical Co's current Operating Margin % of 45.10% is 500.5% 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 Shanghai Xiao Fang Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Xiao Fang Pharmaceutical Co's current Operating Margin % is 45.10%, which is near median its own 10-year median of 48.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Xiao Fang Pharmaceutical Co stock overvalued right now?
Shanghai Xiao Fang Pharmaceutical Co (SHSE:603207) has a current Operating Margin % of 45.10%. The current Operating Margin % is 45.10%, which is near median its 10-year median of 48.99 and 500.5% above the Drug Manufacturers industry median of 7.51. Shanghai Xiao Fang Pharmaceutical Co's overall GF Score™ is 38/100 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 Shanghai Xiao Fang Pharmaceutical Co (SHSE:603207), the current Operating Margin % is 45.10% 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.
Shanghai Xiao Fang Pharmaceutical Co Business Description
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