GemPharmatech CoSHSE:688046 +5.61%95 Operating Margin % is 26.47% as of Mar. 2026, which is 1% above its 10-year median of 26.25. GuruFocus rates SHSE:688046 with a GF Score™ of 95/100 and a GF Value™ of ¥19.37 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 942 Biotechnology companies, GemPharmatech Co ranks better than 90.45% on this metric.
GemPharmatech Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -13.2%.
The historical rank and industry rank for GemPharmatech Co's Operating Margin % or its related term are showing as below:
SHSE:688046'
s Operating Margin % Range Over the Past 10 Years
Min: 3.73 Med: 26.25 Max: 38.24
Current: 24.2
SHSE:688046's Operating Margin % is ranked better than 90.45% of 942
companies
in the Biotechnology industry
Industry Median: -86.83
vs SHSE:688046: 24.20
GemPharmatech Co's 5-Year Average Operating Margin % Growth Rate was -13.20% per year.
GemPharmatech Co (SHSE:688046) 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.
GemPharmatech Co Operating Margin % Related Terms
GemPharmatech Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for GemPharmatech 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.
SHSE:688046 vs VRTX, REGN, ALNY: Operating Margin % Comparison
For the Biotechnology subindustry, GemPharmatech 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.
GemPharmatech Co Operating Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, GemPharmatech Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where GemPharmatech Co's Operating Margin % falls into.
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.
GemPharmatech 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.
GemPharmatech Co (SHSE:688046) has a Operating Margin % of 26.47% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on GemPharmatech Co and its competitors. This is near median its historical median of 26.25. Over the past decade, GemPharmatech Co's Operating Margin % has ranged from 3.73 to 38.24. According to the industry distribution chart, GemPharmatech Co ranks #90 out of 942 companies in the Biotechnology industry, placing it in the top 9.6%.
Is GemPharmatech Co's Operating Margin % too high?
GemPharmatech Co's current Operating Margin % of 26.47% is near median its 10-year median of 26.25. Over the past 10 years, this metric has ranged from a low of 3.73 to a high of 38.24. Based on the distribution chart, GemPharmatech Co ranks #90 out of 942 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, GemPharmatech Co has a GF Score™ of 95/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does GemPharmatech Co's Operating Margin % compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, GemPharmatech Co ranks #90 out of 942 companies for Operating Margin %. This places GemPharmatech Co in the top 10% of its industry — outperforming the majority of peers. Historically, GemPharmatech Co's own Operating Margin % has ranged from 3.73 to 38.24 over the past decade. 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 Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. 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 GemPharmatech Co and its competitors. GemPharmatech Co's current Operating Margin % is 26.47%, which is near median its own 10-year median of 26.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is GemPharmatech Co stock overvalued right now?
Based on GuruFocus' analysis, GemPharmatech Co (SHSE:688046) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥19.37, compared to a current price of ¥24.08 — trading 24.3% above its estimated fair value. The current Operating Margin % is 26.47%, which is near median its 10-year median of 26.25. GemPharmatech Co's overall GF Score™ is 95/100 with 8 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 GemPharmatech Co (SHSE:688046), the current Operating Margin % is 26.47% 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 GemPharmatech Co (SHSE:688046) Overvalued in 2026?
Based on GuruFocus' analysis, GemPharmatech Co stock appears to be overvalued.
The current stock price of ¥24.08 is trading 24.3% above its estimated GF Value™ of ¥19.37.
GuruFocus considers GemPharmatech Co to be Modestly Overvalued.
Key valuation signals for SHSE:688046:
Operating Margin %: 26.47% (near median its 10-year median of 26.25)
GF Value™: ¥19.37 vs. price of ¥24.08 (24.3% above fair value)
No single metric tells the full story. See the SHSE:688046 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
GemPharmatech Co Ltd is a provider of genetically engineered mouse models and services to preclinical research and development communities. The company develops mouse models with independent intellectual property rights based on technical platforms such as gene editing, stem cells, phenotypic analysis, efficacy analysis, and sterile animals, and carries out one-stop services such as model customization, customized breeding, and functional efficacy analysis.
95GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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