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Ningbo TIP Rubber Technology CoSHSE:605255 -6.18%58 Operating Margin % is 12.28% as of Mar. 2026, which is 31% below its 10-year median of 17.92. GuruFocus rates SHSE:605255 with a GF Score™ of 58/100 and a GF Value™ of ¥15.49 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 1,321 Vehicles & Parts companies, Ningbo TIP Rubber Technology Co ranks better than 81.07% on this metric.
Ningbo TIP Rubber Technology Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -6.3%.
The historical rank and industry rank for Ningbo TIP Rubber Technology Co's Operating Margin % or its related term are showing as below:
SHSE:605255'
s Operating Margin % Range Over the Past 10 Years
Min: 8.46 Med: 17.92 Max: 29.1
Current: 11.05
SHSE:605255's Operating Margin % is ranked better than 81.07% of 1321
companies
in the Vehicles & Parts industry
Industry Median: 4.89
vs SHSE:605255: 11.05
Ningbo TIP Rubber Technology Co (SHSE:605255) 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 TIP Rubber Technology Co Operating Margin % Related Terms
Ningbo TIP Rubber 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.
Ningbo TIP Rubber Technology Co Operating Margin % Chart
SHSE:605255 vs ORLY, AZO: Operating Margin % Comparison
For the Auto Parts subindustry, Ningbo TIP Rubber 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.
Ningbo TIP Rubber Technology Co Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ningbo TIP Rubber Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ningbo TIP Rubber Technology Co's Operating Margin % falls into.
Ningbo TIP Rubber 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.
Ningbo TIP Rubber Technology Co (SHSE:605255) has a Operating Margin % of 12.28% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ningbo TIP Rubber Technology Co and its competitors. This is 31% below median its historical median of 17.92. Over the past decade, Ningbo TIP Rubber Technology Co's Operating Margin % has ranged from 8.46 to 29.10. According to the industry distribution chart, Ningbo TIP Rubber Technology Co ranks #250 out of 1321 companies in the Vehicles & Parts industry, placing it in the top 18.9%.
Is Ningbo TIP Rubber Technology Co's Operating Margin % too high?
Ningbo TIP Rubber Technology Co's current Operating Margin % of 12.28% is 31% below median its 10-year median of 17.92. Over the past 10 years, this metric has ranged from a low of 8.46 to a high of 29.10. The Vehicles & Parts industry median Operating Margin % is 4.89. Ningbo TIP Rubber Technology Co's value of 12.28% is 151.1% above this industry median. Based on the distribution chart, Ningbo TIP Rubber Technology Co ranks #250 out of 1321 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Ningbo TIP Rubber Technology Co has a GF Score™ of 58/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ningbo TIP Rubber Technology Co's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Ningbo TIP Rubber Technology Co ranks #250 out of 1321 companies for Operating Margin %. This places Ningbo TIP Rubber Technology Co in the top 19% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 4.89. Ningbo TIP Rubber Technology Co's value of 12.28% is 151.1% above this benchmark. Historically, Ningbo TIP Rubber Technology Co's own Operating Margin % has ranged from 8.46 to 29.10 over the past decade. While the company's 10-year median is 17.92 vs. the industry median of 4.89, Ningbo TIP Rubber 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.89, based on 1,321 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 TIP Rubber Technology Co's current Operating Margin % of 12.28% is 151.1% 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 Ningbo TIP Rubber Technology Co and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ningbo TIP Rubber Technology Co's current Operating Margin % is 12.28%, which is 31% below median its own 10-year median of 17.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo TIP Rubber Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Ningbo TIP Rubber Technology Co (SHSE:605255) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥15.49, compared to a current price of ¥81.80 — trading 428.1% above its estimated fair value. The current Operating Margin % is 12.28%, which is 31% below median its 10-year median of 17.92 and 151.1% above the Vehicles & Parts industry median of 4.89. Ningbo TIP Rubber Technology Co's overall GF Score™ is 58/100 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 TIP Rubber Technology Co (SHSE:605255), the current Operating Margin % is 12.28% 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 TIP Rubber Technology Co (SHSE:605255) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo TIP Rubber Technology Co stock appears to be overvalued.
The current stock price of ¥81.80 is trading 428.1% above its estimated GF Value™ of ¥15.49.
GuruFocus considers Ningbo TIP Rubber Technology Co to be Significantly Overvalued.
Key valuation signals for SHSE:605255:
Operating Margin %: 12.28% (31% below median its 10-year median of 17.92)
GF Value™: ¥15.49 vs. price of ¥81.80 (428.1% above fair value)
Industry Position: 151.1% above the Vehicles & Parts median (#250 of 1321)
No single metric tells the full story. See the SHSE:605255 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo TIP Rubber Technology Co Business Description
Ningbo TIP Rubber Technology Co Ltd is engaged in the production and sales of automotive polymer fluid piping systems and sealing system parts, and assemblies. The company's products include Water hose, Fuel hose, Moulded part, Assembly, Rubber compound, metal processing / plastic part, and Hydraulic hose. The company's main customers are Nissan, Mazda, Ford, Kubota, Jiangling, FAW, Geely, Toyota, Zoomlion, Kelos, etc., and it provides OEM services for automobiles, engineering vehicles, and hydraulic machinery. It operates its businesses within the domestic market and overseas markets.
58GF Score
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