Zhuzhou Huarui Precision Tools CoSHSE:688059 -3.35%82 Operating Margin % is 49.98% as of Mar. 2026, which is 51% above its 10-year median of 33.14. GuruFocus rates SHSE:688059 with a GF Score™ of 82/100 and a GF Value™ of ¥88.75 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 3,032 Industrial Products companies, Zhuzhou Huarui Precision Tools Co ranks better than 99.14% on this metric.
Zhuzhou Huarui Precision Tools Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -7.2%.
The historical rank and industry rank for Zhuzhou Huarui Precision Tools Co's Operating Margin % or its related term are showing as below:
SHSE:688059'
s Operating Margin % Range Over the Past 10 Years
Min: 24.38 Med: 33.14 Max: 36.63
Current: 36.25
SHSE:688059's Operating Margin % is ranked better than 99.14% of 3032
companies
in the Industrial Products industry
Industry Median: 6.535
vs SHSE:688059: 36.25
Zhuzhou Huarui Precision Tools Co (SHSE:688059) 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.
Zhuzhou Huarui Precision Tools Co Operating Margin % Related Terms
Zhuzhou Huarui Precision Tools 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.
Zhuzhou Huarui Precision Tools Co Operating Margin % Chart
SHSE:688059 vs SNA, RBC, LECO: Operating Margin % Comparison
For the Tools & Accessories subindustry, Zhuzhou Huarui Precision Tools 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.
Zhuzhou Huarui Precision Tools Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Zhuzhou Huarui Precision Tools Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zhuzhou Huarui Precision Tools Co's Operating Margin % falls into.
Zhuzhou Huarui Precision Tools 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.
Zhuzhou Huarui Precision Tools Co (SHSE:688059) has a Operating Margin % of 49.98% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Zhuzhou Huarui Precision Tools Co and its competitors. This is 51% above median its historical median of 33.14. Over the past decade, Zhuzhou Huarui Precision Tools Co's Operating Margin % has ranged from 24.38 to 36.63. According to the industry distribution chart, Zhuzhou Huarui Precision Tools Co ranks #26 out of 3032 companies in the Industrial Products industry, placing it in the top 0.90000000000001%.
Is Zhuzhou Huarui Precision Tools Co's Operating Margin % too high?
Zhuzhou Huarui Precision Tools Co's current Operating Margin % of 49.98% is 51% above median its 10-year median of 33.14. Over the past 10 years, this metric has ranged from a low of 24.38 to a high of 36.63. The Industrial Products industry median Operating Margin % is 6.54. Zhuzhou Huarui Precision Tools Co's value of 49.98% is 664.8% above this industry median. Based on the distribution chart, Zhuzhou Huarui Precision Tools Co ranks #26 out of 3032 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Zhuzhou Huarui Precision Tools Co has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Zhuzhou Huarui Precision Tools Co's Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Zhuzhou Huarui Precision Tools Co ranks #26 out of 3032 companies for Operating Margin %. This places Zhuzhou Huarui Precision Tools Co in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.54. Zhuzhou Huarui Precision Tools Co's value of 49.98% is 664.8% above this benchmark. Historically, Zhuzhou Huarui Precision Tools Co's own Operating Margin % has ranged from 24.38 to 36.63 over the past decade. While the company's 10-year median is 33.14 vs. the industry median of 6.54, Zhuzhou Huarui Precision Tools 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 6.54, based on 3,032 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. Zhuzhou Huarui Precision Tools Co's current Operating Margin % of 49.98% is 664.8% 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 Zhuzhou Huarui Precision Tools Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhuzhou Huarui Precision Tools Co's current Operating Margin % is 49.98%, which is 51% above median its own 10-year median of 33.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhuzhou Huarui Precision Tools Co stock overvalued right now?
Based on GuruFocus' analysis, Zhuzhou Huarui Precision Tools Co (SHSE:688059) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥88.75, compared to a current price of ¥202.00 — trading 127.6% above its estimated fair value. The current Operating Margin % is 49.98%, which is 51% above median its 10-year median of 33.14 and 664.8% above the Industrial Products industry median of 6.54. Zhuzhou Huarui Precision Tools Co's overall GF Score™ is 82/100 with 11 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 Zhuzhou Huarui Precision Tools Co (SHSE:688059), the current Operating Margin % is 49.98% 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 Zhuzhou Huarui Precision Tools Co (SHSE:688059) Overvalued in 2026?
Based on GuruFocus' analysis, Zhuzhou Huarui Precision Tools Co stock appears to be overvalued.
The current stock price of ¥202.00 is trading 127.6% above its estimated GF Value™ of ¥88.75.
GuruFocus considers Zhuzhou Huarui Precision Tools Co to be Significantly Overvalued.
Key valuation signals for SHSE:688059:
Operating Margin %: 49.98% (51% above median its 10-year median of 33.14)
GF Value™: ¥88.75 vs. price of ¥202.00 (127.6% above fair value)
Industry Position: 664.8% above the Industrial Products median (#26 of 3032)
No single metric tells the full story. See the SHSE:688059 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhuzhou Huarui Precision Tools Co Business Description
Zhuzhou Huarui Precision Tools Co Ltd is engaged in research and development, production and sales of cemented carbide tools, solid carbide end mills, welded and clamped cutting tools and cemented carbide material. The company's products are mainly used in aerospace, rail transit, automobile, energy, precision electronics, precision mold and other industries.
82GF Score
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