Zhejiangnmei Chemical Industry Co (SHSE:603379) 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.
Zhejiangnmei Chemical Industry Co Operating Margin % Related Terms
Zhejiangnmei Chemical Industry 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.
Zhejiangnmei Chemical Industry Co Operating Margin % Chart
For the Chemicals subindustry, Zhejiangnmei Chemical Industry 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.
Zhejiangnmei Chemical Industry Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Zhejiangnmei Chemical Industry Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zhejiangnmei Chemical Industry Co's Operating Margin % falls into.
Zhejiangnmei Chemical Industry 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.
Zhejiangnmei Chemical Industry Co (SHSE:603379) has a Operating Margin % of 44.36% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Zhejiangnmei Chemical Industry Co and its competitors. This is 111% above median its historical median of 21.00. Over the past decade, Zhejiangnmei Chemical Industry Co's Operating Margin % has ranged from 5.02 to 44.04. According to the industry distribution chart, Zhejiangnmei Chemical Industry Co ranks #8 out of 1580 companies in the Chemicals industry, placing it in the top 0.5%.
Is Zhejiangnmei Chemical Industry Co's Operating Margin % too high?
Zhejiangnmei Chemical Industry Co's current Operating Margin % of 44.36% is 111% above median its 10-year median of 21.00. Over the past 10 years, this metric has ranged from a low of 5.02 to a high of 44.04. The Chemicals industry median Operating Margin % is 6.02. Zhejiangnmei Chemical Industry Co's value of 44.36% is 637.5% above this industry median. Based on the distribution chart, Zhejiangnmei Chemical Industry Co ranks #8 out of 1580 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Zhejiangnmei Chemical Industry Co has a GF Score™ of 94/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiangnmei Chemical Industry Co's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Zhejiangnmei Chemical Industry Co ranks #8 out of 1580 companies for Operating Margin %. This places Zhejiangnmei Chemical Industry Co in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.02. Zhejiangnmei Chemical Industry Co's value of 44.36% is 637.5% above this benchmark. Historically, Zhejiangnmei Chemical Industry Co's own Operating Margin % has ranged from 5.02 to 44.04 over the past decade. While the company's 10-year median is 21.00 vs. the industry median of 6.02, Zhejiangnmei Chemical Industry 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 1,580 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. Zhejiangnmei Chemical Industry Co's current Operating Margin % of 44.36% is 637.5% 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 Zhejiangnmei Chemical Industry 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. Zhejiangnmei Chemical Industry Co's current Operating Margin % is 44.36%, which is 111% above median its own 10-year median of 21.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiangnmei Chemical Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiangnmei Chemical Industry Co (SHSE:603379) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥66.16, compared to a current price of ¥75.89 — trading 14.7% above its estimated fair value. The current Operating Margin % is 44.36%, which is 111% above median its 10-year median of 21.00 and 637.5% above the Chemicals industry median of 6.02. Zhejiangnmei Chemical Industry Co's overall GF Score™ is 94/100 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 Zhejiangnmei Chemical Industry Co (SHSE:603379), the current Operating Margin % is 44.36% 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 Zhejiangnmei Chemical Industry Co (SHSE:603379) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiangnmei Chemical Industry Co stock appears to be overvalued.
The current stock price of ¥75.89 is trading 14.7% above its estimated GF Value™ of ¥66.16.
GuruFocus considers Zhejiangnmei Chemical Industry Co to be Modestly Overvalued.
Key valuation signals for SHSE:603379:
Operating Margin %: 44.36% (111% above median its 10-year median of 21.00)
GF Value™: ¥66.16 vs. price of ¥75.89 (14.7% above fair value)
Industry Position: 637.5% above the Chemicals median (#8 of 1580)
No single metric tells the full story. See the SHSE:603379 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiangnmei Chemical Industry Co Business Description
Zhejiang Sanmei Chemical Industry Co Ltd is specialized in research and development and product production of fluorine chemical products. The products are sold to more than 30 provinces and cities nationwide and more than 100 countries and regions around the world. The company has two series of products, organic fluorine and inorganic fluorine.
94GF Score
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