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Grace Fabric Technology CoSHSE:603256 -6.44%66 Operating Margin % is 39.87% as of Mar. 2026, which is 100% above its 10-year median of 19.95. GuruFocus rates SHSE:603256 with a GF Score™ of 66/100 and a GF Value™ of ¥20.91 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,577 Chemicals companies, Grace Fabric Technology Co ranks better than 97.78% on this metric.
Grace Fabric Technology Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Grace Fabric Technology Co (SHSE:603256) 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.
Grace Fabric Technology Co Operating Margin % Related Terms
Grace Fabric 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.
Grace Fabric Technology Co Operating Margin % Chart
SHSE:603256 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Grace Fabric 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.
Grace Fabric Technology Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Grace Fabric Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Grace Fabric Technology Co's Operating Margin % falls into.
Grace Fabric 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.
Grace Fabric Technology 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.
Grace Fabric Technology Co (SHSE:603256) has a Operating Margin % of 39.87% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Grace Fabric Technology Co and its competitors. This is 100% above median its historical median of 19.95. According to the industry distribution chart, Grace Fabric Technology Co ranks #35 out of 1577 companies in the Chemicals industry, placing it in the top 2.2%.
Is Grace Fabric Technology Co's Operating Margin % too high?
Grace Fabric Technology Co's current Operating Margin % of 39.87% is 100% above median its 10-year median of 19.95. The Chemicals industry median Operating Margin % is 6.03. Grace Fabric Technology Co's value of 39.87% is 561.2% above this industry median. Based on the distribution chart, Grace Fabric Technology Co ranks #35 out of 1577 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Grace Fabric Technology Co has a GF Score™ of 66/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Grace Fabric Technology Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Grace Fabric Technology Co ranks #35 out of 1577 companies for Operating Margin %. This places Grace Fabric Technology Co in the top 2% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Grace Fabric Technology Co's value of 39.87% is 561.2% above this benchmark. While the company's 10-year median is 19.95 vs. the industry median of 6.03, Grace Fabric 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,577 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. Grace Fabric Technology Co's current Operating Margin % of 39.87% is 561.2% 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 Grace Fabric Technology Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grace Fabric Technology Co's current Operating Margin % is 39.87%, which is 100% above median its own 10-year median of 19.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grace Fabric Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Grace Fabric Technology Co (SHSE:603256) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥20.91, compared to a current price of ¥139.07 — trading 565.1% above its estimated fair value. The current Operating Margin % is 39.87%, which is 100% above median its 10-year median of 19.95 and 561.2% above the Chemicals industry median of 6.03. Grace Fabric Technology Co's overall GF Score™ is 66/100 with 6 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 Grace Fabric Technology Co (SHSE:603256), the current Operating Margin % is 39.87% 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 Grace Fabric Technology Co (SHSE:603256) Overvalued in 2026?
Based on GuruFocus' analysis, Grace Fabric Technology Co stock appears to be overvalued.
The current stock price of ¥139.07 is trading 565.1% above its estimated GF Value™ of ¥20.91.
GuruFocus considers Grace Fabric Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:603256:
Operating Margin %: 39.87% (100% above median its 10-year median of 19.95)
GF Value™: ¥20.91 vs. price of ¥139.07 (565.1% above fair value)
Industry Position: 561.2% above the Chemicals median (#35 of 1577)
No single metric tells the full story. See the SHSE:603256 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grace Fabric Technology Co Ltd is mainly engaged in the research and development, production and sales of electronic grade glass fiber cloth. The company's main products are high-end electronic grade glass fiber cloth products, mainly including ultra-thin, ultra-thin, thin electronic grade fiberglass cloth.
66GF Score
Get the complete analysis for SHSE:603256
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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