JiangSu Changling Hydraulic Co (SHSE:605389) Operating Margin %: 19.30% (As of Mar. 2026) — 11% Below Median

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SHSE:605389 JiangSu Changling Hydraulic Co Ltd SHSE:605389
61 GF Score
Price ¥72.78
GF Value ¥28.79
Valuation Significantly Overvalued
! 3 Warning Signs
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What is JiangSu Changling Hydraulic Co Operating Margin %?

JiangSu Changling Hydraulic Co SHSE:605389 +1.08% 61 Operating Margin % is 19.30% as of Mar. 2026, which is 11% below its 10-year median of 21.70. GuruFocus rates SHSE:605389 with a GF Score™ of 61/100 and a GF Value™ of ¥28.79 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 3,036 Industrial Products companies, JiangSu Changling Hydraulic Co ranks better than 90.45% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. JiangSu Changling Hydraulic Co's Operating Income for the three months ended in Mar. 2026 was ¥51 Mil. JiangSu Changling Hydraulic Co's Revenue for the three months ended in Mar. 2026 was ¥264 Mil. Therefore, JiangSu Changling Hydraulic Co's Operating Margin % for the quarter that ended in Mar. 2026 was 19.30%.

Warning Sign:

JiangSu Changling Hydraulic Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -12.2%.

The historical rank and industry rank for JiangSu Changling Hydraulic Co's Operating Margin % or its related term are showing as below:

SHSE:605389' s Operating Margin % Range Over the Past 10 Years
Min: 11.41   Med: 21.7   Max: 32.64
Current: 19.2


SHSE:605389's Operating Margin % is ranked better than
90.45% of 3036 companies
in the Industrial Products industry
Industry Median: 6.475 vs SHSE:605389: 19.20

JiangSu Changling Hydraulic Co's 5-Year Average Operating Margin % Growth Rate was -12.20% per year.

JiangSu Changling Hydraulic Co's Operating Income for the three months ended in Mar. 2026 was ¥51 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥215 Mil.


JiangSu Changling Hydraulic Co  (SHSE:605389) 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 Nokia’s 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.


JiangSu Changling Hydraulic Co Operating Margin % Related Terms


JiangSu Changling Hydraulic Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for JiangSu Changling Hydraulic 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.

JiangSu Changling Hydraulic Co Operating Margin % Chart

JiangSu Changling Hydraulic Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.15 13.64 11.41 14.19 18.36

JiangSu Changling Hydraulic Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 15.22 16.18 22.80 18.25 19.30

SHSE:605389 vs SNA, RBC, SWK: Operating Margin % Comparison

For the Tools & Accessories subindustry, JiangSu Changling Hydraulic 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.


JiangSu Changling Hydraulic Co Operating Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, JiangSu Changling Hydraulic Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where JiangSu Changling Hydraulic Co's Operating Margin % falls into.


SHSE:605389
61GF Score
JiangSu Changling Hydraulic Co Ltd SHSE:605389
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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JiangSu Changling Hydraulic 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.

JiangSu Changling Hydraulic Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=197.221 / 1074.136
=18.36 %

JiangSu Changling Hydraulic Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=50.889 / 263.664
=19.30 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 19.30% mean?
JiangSu Changling Hydraulic Co (SHSE:605389) has a Operating Margin % of 19.30% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on JiangSu Changling Hydraulic Co and its competitors. This is 11% below median its historical median of 21.70. Over the past decade, JiangSu Changling Hydraulic Co's Operating Margin % has ranged from 11.41 to 32.64. According to the industry distribution chart, JiangSu Changling Hydraulic Co ranks #290 out of 3036 companies in the Industrial Products industry, placing it in the top 9.6%.
Is JiangSu Changling Hydraulic Co's Operating Margin % too high?
JiangSu Changling Hydraulic Co's current Operating Margin % of 19.30% is 11% below median its 10-year median of 21.70. Over the past 10 years, this metric has ranged from a low of 11.41 to a high of 32.64. The Industrial Products industry median Operating Margin % is 6.48. JiangSu Changling Hydraulic Co's value of 19.30% is 198.1% above this industry median. Based on the distribution chart, JiangSu Changling Hydraulic Co ranks #290 out of 3036 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, JiangSu Changling Hydraulic Co has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does JiangSu Changling Hydraulic Co's Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, JiangSu Changling Hydraulic Co ranks #290 out of 3036 companies for Operating Margin %. This places JiangSu Changling Hydraulic Co in the top 10% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.48. JiangSu Changling Hydraulic Co's value of 19.30% is 198.1% above this benchmark. Historically, JiangSu Changling Hydraulic Co's own Operating Margin % has ranged from 11.41 to 32.64 over the past decade. While the company's 10-year median is 21.70 vs. the industry median of 6.48, JiangSu Changling Hydraulic 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.48, based on 3,036 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. JiangSu Changling Hydraulic Co's current Operating Margin % of 19.30% is 198.1% 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 JiangSu Changling Hydraulic Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. JiangSu Changling Hydraulic Co's current Operating Margin % is 19.30%, which is 11% below median its own 10-year median of 21.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is JiangSu Changling Hydraulic Co stock overvalued right now?
Based on GuruFocus' analysis, JiangSu Changling Hydraulic Co (SHSE:605389) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥28.79, compared to a current price of ¥72.78 — trading 152.8% above its estimated fair value. The current Operating Margin % is 19.30%, which is 11% below median its 10-year median of 21.70 and 198.1% above the Industrial Products industry median of 6.48. JiangSu Changling Hydraulic Co's overall GF Score™ is 61/100 with 3 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 JiangSu Changling Hydraulic Co (SHSE:605389), the current Operating Margin % is 19.30% 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 JiangSu Changling Hydraulic Co (SHSE:605389) Overvalued in 2026?

Based on GuruFocus' analysis, JiangSu Changling Hydraulic Co stock appears to be overvalued. The current stock price of ¥72.78 is trading 152.8% above its estimated GF Value™ of ¥28.79. GuruFocus considers JiangSu Changling Hydraulic Co to be Significantly Overvalued.

Key valuation signals for SHSE:605389:

  • Operating Margin %: 19.30% (11% below median its 10-year median of 21.70)
  • GF Value™: ¥28.79 vs. price of ¥72.78 (152.8% above fair value)
  • GF Score™: 61/100 with 3 warning signs
  • Industry Position: 198.1% above the Industrial Products median (#290 of 3036)

No single metric tells the full story. See the SHSE:605389 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


JiangSu Changling Hydraulic Co Business Description

Address 885 Yungu Road, Yunting Street, Jiangsu Province, Jiangyin, CHN, 214422
JiangSu Changling Hydraulic Co Ltd is engaged in the research and development, production, and sales of key hydraulic components for construction machinery. The main products are hydraulic central rotary joints for construction machinery and hydraulic crawler tensioners, hydraulic valves and others.
61GF Score

Get the complete analysis for SHSE:605389

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥72.78
Price
¥28.79
GF Value