Shandong Donghong Pipe Industry Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -14%.
The historical rank and industry rank for Shandong Donghong Pipe Industry Co's Operating Margin % or its related term are showing as below:
SHSE:603856'
s Operating Margin % Range Over the Past 10 Years
Min: 6.52 Med: 9.77 Max: 17.1
Current: 6.52
SHSE:603856's Operating Margin % is ranked better than 53.61% of 1761
companies
in the Construction industry
Industry Median: 5.89
vs SHSE:603856: 6.52
Shandong Donghong Pipe Industry Co (SHSE:603856) 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 Donghong Pipe Industry Co Operating Margin % Related Terms
Shandong Donghong Pipe 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.
Shandong Donghong Pipe Industry Co Operating Margin % Chart
SHSE:603856 vs TT, JCI, CARR: Operating Margin % Comparison
For the Building Products & Equipment subindustry, Shandong Donghong Pipe 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.
Shandong Donghong Pipe Industry Co Operating Margin % vs Construction Industry
For the Construction industry and Industrials sector, Shandong Donghong Pipe Industry Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shandong Donghong Pipe Industry Co's Operating Margin % falls into.
Shandong Donghong Pipe 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.
Shandong Donghong Pipe Industry Co (SHSE:603856) has a Operating Margin % of 8.50% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shandong Donghong Pipe Industry Co and its competitors. This is 13% below median its historical median of 9.77. Over the past decade, Shandong Donghong Pipe Industry Co's Operating Margin % has ranged from 6.52 to 17.10. According to the industry distribution chart, Shandong Donghong Pipe Industry Co ranks #817 out of 1761 companies in the Construction industry, placing it in the top 46.4%.
Is Shandong Donghong Pipe Industry Co's Operating Margin % too high?
Shandong Donghong Pipe Industry Co's current Operating Margin % of 8.50% is 13% below median its 10-year median of 9.77. Over the past 10 years, this metric has ranged from a low of 6.52 to a high of 17.10. The Construction industry median Operating Margin % is 5.89. Shandong Donghong Pipe Industry Co's value of 8.50% is 44.3% above this industry median. Based on the distribution chart, Shandong Donghong Pipe Industry Co ranks #817 out of 1761 companies in the Construction industry, which is above the industry midpoint. Overall, Shandong Donghong Pipe Industry Co has a GF Score™ of 79/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shandong Donghong Pipe Industry Co's Operating Margin % compare to TT and JCI?
According to the Construction industry distribution chart, Shandong Donghong Pipe Industry Co ranks #817 out of 1761 companies for Operating Margin %. This puts Shandong Donghong Pipe Industry Co in the upper half of its industry. The industry median Operating Margin % is 5.89. Shandong Donghong Pipe Industry Co's value of 8.50% is 44.3% above this benchmark. Historically, Shandong Donghong Pipe Industry Co's own Operating Margin % has ranged from 6.52 to 17.10 over the past decade. While the company's 10-year median is 9.77 vs. the industry median of 5.89, Shandong Donghong Pipe 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,761 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 Donghong Pipe Industry Co's current Operating Margin % of 8.50% is 44.3% 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 Shandong Donghong Pipe Industry Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shandong Donghong Pipe Industry Co's current Operating Margin % is 8.50%, which is 13% below median its own 10-year median of 9.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shandong Donghong Pipe Industry Co stock overvalued right now?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co (SHSE:603856) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥9.27, compared to a current price of ¥13.51 — trading 45.7% above its estimated fair value. The current Operating Margin % is 8.50%, which is 13% below median its 10-year median of 9.77 and 44.3% above the Construction industry median of 5.89. Shandong Donghong Pipe Industry Co's overall GF Score™ is 79/100 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 Shandong Donghong Pipe Industry Co (SHSE:603856), the current Operating Margin % is 8.50% 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 Donghong Pipe Industry Co (SHSE:603856) Overvalued in 2026?
Based on GuruFocus' analysis, Shandong Donghong Pipe Industry Co stock appears to be overvalued.
The current stock price of ¥13.51 is trading 45.7% above its estimated GF Value™ of ¥9.27.
GuruFocus considers Shandong Donghong Pipe Industry Co to be Significantly Overvalued.
Key valuation signals for SHSE:603856:
Operating Margin %: 8.50% (13% below median its 10-year median of 9.77)
GF Value™: ¥9.27 vs. price of ¥13.51 (45.7% above fair value)
Industry Position: 44.3% above the Construction median (#817 of 1761)
No single metric tells the full story. See the SHSE:603856 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shandong Donghong Pipe Industry Co Business Description
Shandong Donghong Pipe Industry Co Ltd is engaged in the research and development, manufacturing and service of an intelligent pipeline system in China. Its products line includes steel mesh skeleton plastic composite pipes, super wear-resisting composite pipes, HDPE gas pipes, plastic-coated steel pipes, polyethylene pipes for underground coal mining, and other products.
79GF Score
Get the complete analysis for SHSE:603856
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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