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Ningbo Shimao Energy CoSHSE:605028 -0.63%69 Operating Margin % is 35.95% as of Mar. 2026, which is 22% below its 10-year median of 46.32. GuruFocus rates SHSE:605028 with a GF Score™ of 69/100 and a GF Value™ of ¥14.83 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 421 Utilities - Independent Power Producers companies, Ningbo Shimao Energy Co ranks better than 84.09% on this metric.
Ningbo Shimao Energy Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -5.1%.
The historical rank and industry rank for Ningbo Shimao Energy Co's Operating Margin % or its related term are showing as below:
SHSE:605028'
s Operating Margin % Range Over the Past 10 Years
Min: 20.68 Med: 46.32 Max: 54.21
Current: 36.99
SHSE:605028's Operating Margin % is ranked better than 84.09% of 421
companies
in the Utilities - Independent Power Producers industry
Industry Median: 13.54
vs SHSE:605028: 36.99
Ningbo Shimao Energy Co's 5-Year Average Operating Margin % Growth Rate was -5.10% per year.
Ningbo Shimao Energy Co (SHSE:605028) 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.
Ningbo Shimao Energy Co Operating Margin % Related Terms
Ningbo Shimao Energy Co Operating Margin % Historical Data
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The historical data trend for Ningbo Shimao Energy 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.
Ningbo Shimao Energy Co Operating Margin % Competitor Comparison
For the Utilities - Renewable subindustry, Ningbo Shimao Energy 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.
Ningbo Shimao Energy Co Operating Margin % vs Utilities - Independent Power Producers Industry
For the Utilities - Independent Power Producers industry and Utilities sector, Ningbo Shimao Energy Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ningbo Shimao Energy Co's Operating Margin % falls into.
Ningbo Shimao Energy 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.
Ningbo Shimao Energy 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.
Ningbo Shimao Energy Co (SHSE:605028) has a Operating Margin % of 35.95% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ningbo Shimao Energy Co and its competitors. This is 22% below median its historical median of 46.32. Over the past decade, Ningbo Shimao Energy Co's Operating Margin % has ranged from 20.68 to 54.21. According to the industry distribution chart, Ningbo Shimao Energy Co ranks #67 out of 421 companies in the Utilities - Independent Power Producers industry, placing it in the top 15.9%.
Is Ningbo Shimao Energy Co's Operating Margin % too high?
Ningbo Shimao Energy Co's current Operating Margin % of 35.95% is 22% below median its 10-year median of 46.32. Over the past 10 years, this metric has ranged from a low of 20.68 to a high of 54.21. The Utilities - Independent Power Producers industry median Operating Margin % is 13.54. Ningbo Shimao Energy Co's value of 35.95% is 165.5% above this industry median. Based on the distribution chart, Ningbo Shimao Energy Co ranks #67 out of 421 companies in the Utilities - Independent Power Producers industry, which is in the top quartile — a strong position relative to peers. Overall, Ningbo Shimao Energy Co has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ningbo Shimao Energy Co's Operating Margin % compare to competitors?
According to the Utilities - Independent Power Producers industry distribution chart, Ningbo Shimao Energy Co ranks #67 out of 421 companies for Operating Margin %. This places Ningbo Shimao Energy Co in the top 16% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 13.54. Ningbo Shimao Energy Co's value of 35.95% is 165.5% above this benchmark. Historically, Ningbo Shimao Energy Co's own Operating Margin % has ranged from 20.68 to 54.21 over the past decade. While the company's 10-year median is 46.32 vs. the industry median of 13.54, Ningbo Shimao Energy 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 an Utilities - Independent Power Producers company?
The median Operating Margin % among Utilities - Independent Power Producers companies is 13.54, based on 421 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. Ningbo Shimao Energy Co's current Operating Margin % of 35.95% is 165.5% 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 Ningbo Shimao Energy Co and its competitors. For the Utilities - Independent Power Producers industry, the median Operating Margin % is 13.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ningbo Shimao Energy Co's current Operating Margin % is 35.95%, which is 22% below median its own 10-year median of 46.32. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo Shimao Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Ningbo Shimao Energy Co (SHSE:605028) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥14.83, compared to a current price of ¥26.90 — trading 81.4% above its estimated fair value. The current Operating Margin % is 35.95%, which is 22% below median its 10-year median of 46.32 and 165.5% above the Utilities - Independent Power Producers industry median of 13.54. Ningbo Shimao Energy Co's overall GF Score™ is 69/100 with 4 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 Ningbo Shimao Energy Co (SHSE:605028), the current Operating Margin % is 35.95% 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 Ningbo Shimao Energy Co (SHSE:605028) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo Shimao Energy Co stock appears to be overvalued.
The current stock price of ¥26.90 is trading 81.4% above its estimated GF Value™ of ¥14.83.
GuruFocus considers Ningbo Shimao Energy Co to be Significantly Overvalued.
Key valuation signals for SHSE:605028:
Operating Margin %: 35.95% (22% below median its 10-year median of 46.32)
GF Value™: ¥14.83 vs. price of ¥26.90 (81.4% above fair value)
Industry Position: 165.5% above the Utilities - Independent Power Producers median (#67 of 421)
No single metric tells the full story. See the SHSE:605028 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo Shimao Energy Co Ltd is a cogeneration company with domestic waste and coal as the main raw materials. It provides central heating for the Sino-Italian Ningbo Ecological Park and the surrounding electroplating and food parks for the only regional cogeneration company in the area.
69GF Score
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