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Cathay BiotechSHSE:688065 -0.02%92 Operating Margin % is 24.65% as of Mar. 2026, which is 13% above its 10-year median of 21.76. GuruFocus rates SHSE:688065 with a GF Score™ of 92/100 and a GF Value™ of ¥50.12 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 1,578 Chemicals companies, Cathay Biotech ranks better than 93.35% on this metric.
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.
Cathay Biotech Operating Margin % Related Terms
Cathay Biotech Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cathay Biotech'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.
For the Chemicals subindustry, Cathay Biotech'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.
Cathay Biotech Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Cathay Biotech's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cathay Biotech'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.
Cathay Biotech'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.
Cathay Biotech (SHSE:688065) has a Operating Margin % of 24.65% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cathay Biotech and its competitors. This is 13% above median its historical median of 21.76. Over the past decade, Cathay Biotech's Operating Margin % has ranged from 12.93 to 33.07. According to the industry distribution chart, Cathay Biotech ranks #105 out of 1578 companies in the Chemicals industry, placing it in the top 6.7%.
Is Cathay Biotech's Operating Margin % too high?
Cathay Biotech's current Operating Margin % of 24.65% is 13% above median its 10-year median of 21.76. Over the past 10 years, this metric has ranged from a low of 12.93 to a high of 33.07. The Chemicals industry median Operating Margin % is 6.04. Cathay Biotech's value of 24.65% is 308.1% above this industry median. Based on the distribution chart, Cathay Biotech ranks #105 out of 1578 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Cathay Biotech has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cathay Biotech's Operating Margin % compare to DOW?
According to the Chemicals industry distribution chart, Cathay Biotech ranks #105 out of 1578 companies for Operating Margin %. This places Cathay Biotech in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.04. Cathay Biotech's value of 24.65% is 308.1% above this benchmark. Historically, Cathay Biotech's own Operating Margin % has ranged from 12.93 to 33.07 over the past decade. While the company's 10-year median is 21.76 vs. the industry median of 6.04, Cathay Biotech 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.04, based on 1,578 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. Cathay Biotech's current Operating Margin % of 24.65% is 308.1% 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 Cathay Biotech and its competitors. For the Chemicals industry, the median Operating Margin % is 6.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cathay Biotech's current Operating Margin % is 24.65%, which is 13% above median its own 10-year median of 21.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cathay Biotech stock overvalued right now?
Based on GuruFocus' analysis, Cathay Biotech (SHSE:688065) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥50.12, compared to a current price of ¥42.75 — trading 14.7% below its estimated fair value. The current Operating Margin % is 24.65%, which is 13% above median its 10-year median of 21.76 and 308.1% above the Chemicals industry median of 6.04. Cathay Biotech's overall GF Score™ is 92/100 with 5 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 Cathay Biotech (SHSE:688065), the current Operating Margin % is 24.65% 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 Cathay Biotech (SHSE:688065) Overvalued in 2026?
Based on GuruFocus' analysis, Cathay Biotech stock appears to be undervalued.
The current stock price of ¥42.75 is trading 14.7% below its estimated GF Value™ of ¥50.12.
GuruFocus considers Cathay Biotech to be Modestly Undervalued.
Key valuation signals for SHSE:688065:
Operating Margin %: 24.65% (13% above median its 10-year median of 21.76)
GF Value™: ¥50.12 vs. price of ¥42.75 (14.7% below fair value)
Industry Position: 308.1% above the Chemicals median (#105 of 1578)
No single metric tells the full story. See the SHSE:688065 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cathay Biotech Inc is engaged in research, development, production, and sales of new bio-based materials. The company owns the TERRYL brand, which focuses on bio-based polyamide fibers for textiles, and ECOPENT, which serves the engineering materials market.
92GF 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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