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Leader Harmonious Drive Systems Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -16%.
The historical rank and industry rank for Leader Harmonious Drive Systems Co's Operating Margin % or its related term are showing as below:
SHSE:688017'
s Operating Margin % Range Over the Past 10 Years
Min: 17.57 Med: 31.69 Max: 41.91
Current: 23.17
SHSE:688017's Operating Margin % is ranked better than 94.63% of 3035
companies
in the Industrial Products industry
Industry Median: 6.51
vs SHSE:688017: 23.17
Leader Harmonious Drive Systems Co (SHSE:688017) 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.
Leader Harmonious Drive Systems Co Operating Margin % Related Terms
Leader Harmonious Drive Systems 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.
Leader Harmonious Drive Systems Co Operating Margin % Chart
SHSE:688017 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Leader Harmonious Drive Systems 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.
Leader Harmonious Drive Systems Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Leader Harmonious Drive Systems Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Leader Harmonious Drive Systems Co's Operating Margin % falls into.
Leader Harmonious Drive Systems 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.
Leader Harmonious Drive Systems Co (SHSE:688017) has a Operating Margin % of 22.28% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Leader Harmonious Drive Systems Co and its competitors. This is 30% below median its historical median of 31.69. Over the past decade, Leader Harmonious Drive Systems Co's Operating Margin % has ranged from 17.57 to 41.91. According to the industry distribution chart, Leader Harmonious Drive Systems Co ranks #163 out of 3035 companies in the Industrial Products industry, placing it in the top 5.4%.
Is Leader Harmonious Drive Systems Co's Operating Margin % too high?
Leader Harmonious Drive Systems Co's current Operating Margin % of 22.28% is 30% below median its 10-year median of 31.69. Over the past 10 years, this metric has ranged from a low of 17.57 to a high of 41.91. The Industrial Products industry median Operating Margin % is 6.51. Leader Harmonious Drive Systems Co's value of 22.28% is 242.2% above this industry median. Based on the distribution chart, Leader Harmonious Drive Systems Co ranks #163 out of 3035 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Leader Harmonious Drive Systems Co has a GF Score™ of 88/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Leader Harmonious Drive Systems Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Leader Harmonious Drive Systems Co ranks #163 out of 3035 companies for Operating Margin %. This places Leader Harmonious Drive Systems Co in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.51. Leader Harmonious Drive Systems Co's value of 22.28% is 242.2% above this benchmark. Historically, Leader Harmonious Drive Systems Co's own Operating Margin % has ranged from 17.57 to 41.91 over the past decade. While the company's 10-year median is 31.69 vs. the industry median of 6.51, Leader Harmonious Drive Systems 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 6.51, based on 3,035 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. Leader Harmonious Drive Systems Co's current Operating Margin % of 22.28% is 242.2% 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 Leader Harmonious Drive Systems Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Leader Harmonious Drive Systems Co's current Operating Margin % is 22.28%, which is 30% below median its own 10-year median of 31.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Leader Harmonious Drive Systems Co stock overvalued right now?
Based on GuruFocus' analysis, Leader Harmonious Drive Systems Co (SHSE:688017) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥222.55, compared to a current price of ¥261.00 — trading 17.3% above its estimated fair value. The current Operating Margin % is 22.28%, which is 30% below median its 10-year median of 31.69 and 242.2% above the Industrial Products industry median of 6.51. Leader Harmonious Drive Systems Co's overall GF Score™ is 88/100 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 Leader Harmonious Drive Systems Co (SHSE:688017), the current Operating Margin % is 22.28% 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 Leader Harmonious Drive Systems Co (SHSE:688017) Overvalued in 2026?
Based on GuruFocus' analysis, Leader Harmonious Drive Systems Co stock appears to be overvalued.
The current stock price of ¥261.00 is trading 17.3% above its estimated GF Value™ of ¥222.55.
GuruFocus considers Leader Harmonious Drive Systems Co to be Modestly Overvalued.
Key valuation signals for SHSE:688017:
Operating Margin %: 22.28% (30% below median its 10-year median of 31.69)
GF Value™: ¥222.55 vs. price of ¥261.00 (17.3% above fair value)
Industry Position: 242.2% above the Industrial Products median (#163 of 3035)
No single metric tells the full story. See the SHSE:688017 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Leader Harmonious Drive Systems Co Business Description
Leader Harmonious Drive Systems Co Ltd is engaged in design, production and sales of precision transmission devices. The company's products include harmonic reducers, mechatronics actuators and precision parts. Its products are widely used in high-end manufacturing fields such as industrial robots, service robots, CNC machine tools, aerospace, medical equipment, semiconductor production equipment, and new energy equipment.
88GF Score
Get the complete analysis for SHSE:688017
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