Jiangsu Hengxing New Material Technology Co (SHSE:603276) 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 Hengxing New Material Technology Co Operating Margin % Related Terms
Jiangsu Hengxing New Material 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 Hengxing New Material Technology Co Operating Margin % Chart
Jiangsu Hengxing New Material Technology Co Annual Data
For the Chemicals subindustry, Jiangsu Hengxing New Material 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 Hengxing New Material Technology Co Operating Margin % vs Chemicals Industry
Jiangsu Hengxing New Material 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 Hengxing New Material Technology Co (SHSE:603276) has a Operating Margin % of 13.85% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Jiangsu Hengxing New Material Technology Co and its competitors. This is 21% below median its historical median of 17.44. Over the past decade, Jiangsu Hengxing New Material Technology Co's Operating Margin % has ranged from 4.06 to 35.19. According to the industry distribution chart, Jiangsu Hengxing New Material Technology Co ranks #540 out of 1574 companies in the Chemicals industry, placing it in the top 34.3%.
Is Jiangsu Hengxing New Material Technology Co's Operating Margin % too high?
Jiangsu Hengxing New Material Technology Co's current Operating Margin % of 13.85% is 21% below median its 10-year median of 17.44. Over the past 10 years, this metric has ranged from a low of 4.06 to a high of 35.19. The Chemicals industry median Operating Margin % is 6.02. Jiangsu Hengxing New Material Technology Co's value of 13.85% is 130.1% above this industry median. Based on the distribution chart, Jiangsu Hengxing New Material Technology Co ranks #540 out of 1574 companies in the Chemicals industry, which is above the industry midpoint. Overall, Jiangsu Hengxing New Material Technology Co has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Jiangsu Hengxing New Material Technology Co's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Jiangsu Hengxing New Material Technology Co ranks #540 out of 1574 companies for Operating Margin %. This puts Jiangsu Hengxing New Material Technology Co in the upper half of its industry. The industry median Operating Margin % is 6.02. Jiangsu Hengxing New Material Technology Co's value of 13.85% is 130.1% above this benchmark. Historically, Jiangsu Hengxing New Material Technology Co's own Operating Margin % has ranged from 4.06 to 35.19 over the past decade. While the company's 10-year median is 17.44 vs. the industry median of 6.02, Jiangsu Hengxing New Material 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 6.02, based on 1,574 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 Hengxing New Material Technology Co's current Operating Margin % of 13.85% is 130.1% 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 Jiangsu Hengxing New Material Technology Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Jiangsu Hengxing New Material Technology Co's current Operating Margin % is 13.85%, which is 21% below median its own 10-year median of 17.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Jiangsu Hengxing New Material Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Jiangsu Hengxing New Material Technology Co (SHSE:603276) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥18.68, compared to a current price of ¥16.15 — trading 13.5% below its estimated fair value. The current Operating Margin % is 13.85%, which is 21% below median its 10-year median of 17.44 and 130.1% above the Chemicals industry median of 6.02. Jiangsu Hengxing New Material Technology Co's overall GF Score™ is 64/100 with 5 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 Hengxing New Material Technology Co (SHSE:603276), the current Operating Margin % is 13.85% 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 Hengxing New Material Technology Co (SHSE:603276) Overvalued in 2026?
Based on GuruFocus' analysis, Jiangsu Hengxing New Material Technology Co stock appears to be undervalued.
The current stock price of ¥16.15 is trading 13.5% below its estimated GF Value™ of ¥18.68.
GuruFocus considers Jiangsu Hengxing New Material Technology Co to be Modestly Undervalued.
Key valuation signals for SHSE:603276:
Operating Margin %: 13.85% (21% below median its 10-year median of 17.44)
GF Value™: ¥18.68 vs. price of ¥16.15 (13.5% below fair value)
Industry Position: 130.1% above the Chemicals median (#540 of 1574)
No single metric tells the full story. See the SHSE:603276 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Jiangsu Hengxing New Material Technology Co Business Description
Jiangsu Hengxing New Material Technology Co Ltd is engaged in research & development, production, and sales of ketone, ester, and acid fine chemical products. Its products, categorized by composition, cover organic ketones, organic esters, organic acids, acid anhydrides, and fatty acid salts.
64GF Score
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