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Shandong Daye CoSHSE:603278 +0.53%70 Operating Margin % is 3.19% as of Mar. 2026, which is 31% below its 10-year median of 4.59. GuruFocus rates SHSE:603278 with a GF Score™ of 70/100 and a GF Value™ of ¥12.34 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 3,033 Industrial Products companies, Shandong Daye Co ranks worse than 71.15% on this metric.
The historical rank and industry rank for Shandong Daye Co's Operating Margin % or its related term are showing as below:
SHSE:603278'
s Operating Margin % Range Over the Past 10 Years
Min: -3.32 Med: 4.59 Max: 15.56
Current: 2.01
SHSE:603278's Operating Margin % is ranked worse than 71.15% of 3033
companies
in the Industrial Products industry
Industry Median: 6.45
vs SHSE:603278: 2.01
Shandong Daye Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Shandong Daye Co (SHSE:603278) 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.
Shandong Daye Co Operating Margin % Related Terms
Shandong Daye Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Shandong Daye Co's Operating Margin % can be seen below:
* 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.
SHSE:603278 vs CRS, ATI, MLI: Operating Margin % Comparison
For the Metal Fabrication subindustry, Shandong Daye 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.
Shandong Daye Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shandong Daye Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Daye Co's Operating Margin % falls into.
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.
Shandong Daye 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.
Shandong Daye Co (SHSE:603278) has a Operating Margin % of 3.19% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shandong Daye Co and its competitors. This is 31% below median its historical median of 4.59. According to the industry distribution chart, Shandong Daye Co ranks #2158 out of 3033 companies in the Industrial Products industry, placing it in the top 71.2%.
Is Shandong Daye Co's Operating Margin % too high?
Shandong Daye Co's current Operating Margin % of 3.19% is 31% below median its 10-year median of 4.59. The Industrial Products industry median Operating Margin % is 6.45. Shandong Daye Co's value of 3.19% is 50.5% below this industry median. Based on the distribution chart, Shandong Daye Co ranks #2158 out of 3033 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shandong Daye Co has a GF Score™ of 70/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Daye Co's Operating Margin % compare to CRS and ATI?
According to the Industrial Products industry distribution chart, Shandong Daye Co ranks #2158 out of 3033 companies for Operating Margin %. This places Shandong Daye Co in the lower half of its industry. The industry median Operating Margin % is 6.45. Shandong Daye Co's value of 3.19% is 50.5% below this benchmark. While the company's 10-year median is 4.59 vs. the industry median of 6.45, Shandong Daye 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.45, based on 3,033 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. Shandong Daye Co's current Operating Margin % of 3.19% is 50.5% 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 Shandong Daye Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Daye Co's current Operating Margin % is 3.19%, which is 31% below median its own 10-year median of 4.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Daye Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Daye Co (SHSE:603278) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥12.34, compared to a current price of ¥9.54 — trading 22.7% below its estimated fair value. The current Operating Margin % is 3.19%, which is 31% below median its 10-year median of 4.59 and 50.5% below the Industrial Products industry median of 6.45. Shandong Daye Co's overall GF Score™ is 70/100 with 9 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 Shandong Daye Co (SHSE:603278), the current Operating Margin % is 3.19% 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 Shandong Daye Co (SHSE:603278) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Daye Co stock appears to be undervalued.
The current stock price of ¥9.54 is trading 22.7% below its estimated GF Value™ of ¥12.34.
GuruFocus considers Shandong Daye Co to be Modestly Undervalued.
Key valuation signals for SHSE:603278:
Operating Margin %: 3.19% (31% below median its 10-year median of 4.59)
GF Value™: ¥12.34 vs. price of ¥9.54 (22.7% below fair value)
Industry Position: 50.5% below the Industrial Products median (#2158 of 3033)
No single metric tells the full story. See the SHSE:603278 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Daye Co Ltd is engaged in the bead wire, steel cord and hose wires. Its customers include tyre manufacturers such as ZC Rubber, Cheng xin, CST, Double Coin, and Aeolus Tyre. The company has established the National Rubber Frame Material Standard R&D Base, Petroleum and Chemical Industry High-Performance Bead Wire Research Center, and Shandong High-Performance Bead Wire Engineering.
70GF 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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