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Shareate ToolsSHSE:688257 -2.41%78 Operating Margin % is 35.61% as of Mar. 2026, which is 129% above its 10-year median of 15.55. GuruFocus rates SHSE:688257 with a GF Score™ of 78/100 and a GF Value™ of ¥22.92 (Significantly Overvalued). The stock has 4 warning signs investors should review. Among 3,035 Industrial Products companies, Shareate Tools ranks better than 93.64% on this metric.
Shareate Tools Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -8.6%.
The historical rank and industry rank for Shareate Tools's Operating Margin % or its related term are showing as below:
SHSE:688257'
s Operating Margin % Range Over the Past 10 Years
Min: 13.41 Med: 15.55 Max: 22.1
Current: 22.1
SHSE:688257's Operating Margin % is ranked better than 93.64% of 3035
companies
in the Industrial Products industry
Industry Median: 6.49
vs SHSE:688257: 22.10
Shareate Tools's 5-Year Average Operating Margin % Growth Rate was -8.60% per year.
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.
Shareate Tools Operating Margin % Related Terms
Shareate Tools Operating Margin % Historical Data
* Premium members only.
The historical data trend for Shareate Tools'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:688257 vs SNA, RBC, SWK: Operating Margin % Comparison
For the Tools & Accessories subindustry, Shareate Tools'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.
Shareate Tools Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shareate Tools's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shareate Tools'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.
Shareate Tools'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.
Shareate Tools (SHSE:688257) has a Operating Margin % of 35.61% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shareate Tools and its competitors. This is 129% above median its historical median of 15.55. Over the past decade, Shareate Tools' Operating Margin % has ranged from 13.41 to 22.10. According to the industry distribution chart, Shareate Tools ranks #193 out of 3035 companies in the Industrial Products industry, placing it in the top 6.4%.
Is Shareate Tools' Operating Margin % too high?
Shareate Tools' current Operating Margin % of 35.61% is 129% above median its 10-year median of 15.55. Over the past 10 years, this metric has ranged from a low of 13.41 to a high of 22.10. The Industrial Products industry median Operating Margin % is 6.49. Shareate Tools' value of 35.61% is 448.7% above this industry median. Based on the distribution chart, Shareate Tools ranks #193 out of 3035 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Shareate Tools has a GF Score™ of 78/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shareate Tools' Operating Margin % compare to SNA and RBC?
According to the Industrial Products industry distribution chart, Shareate Tools ranks #193 out of 3035 companies for Operating Margin %. This places Shareate Tools in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.49. Shareate Tools' value of 35.61% is 448.7% above this benchmark. Historically, Shareate Tools' own Operating Margin % has ranged from 13.41 to 22.10 over the past decade. While the company's 10-year median is 15.55 vs. the industry median of 6.49, Shareate Tools 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 6.49, 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. Shareate Tools's current Operating Margin % of 35.61% is 448.7% 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 Shareate Tools and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.49 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shareate Tools's current Operating Margin % is 35.61%, which is 129% above median its own 10-year median of 15.55. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shareate Tools stock overvalued right now?
Based on GuruFocus' analysis, Shareate Tools (SHSE:688257) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥22.92, compared to a current price of ¥53.55 — trading 133.6% above its estimated fair value. The current Operating Margin % is 35.61%, which is 129% above median its 10-year median of 15.55 and 448.7% above the Industrial Products industry median of 6.49. Shareate Tools' overall GF Score™ is 78/100 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 Shareate Tools (SHSE:688257), the current Operating Margin % is 35.61% 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 Shareate Tools (SHSE:688257) Overvalued in 2026?
Based on GuruFocus' analysis, Shareate Tools stock appears to be overvalued.
The current stock price of ¥53.55 is trading 133.6% above its estimated GF Value™ of ¥22.92.
GuruFocus considers Shareate Tools to be Significantly Overvalued.
Key valuation signals for SHSE:688257:
Operating Margin %: 35.61% (129% above median its 10-year median of 15.55)
GF Value™: ¥22.92 vs. price of ¥53.55 (133.6% above fair value)
Industry Position: 448.7% above the Industrial Products median (#193 of 3035)
No single metric tells the full story. See the SHSE:688257 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shareate Tools Ltd is a national high-tech enterprise, engaged in cemented carbide products and rock drilling tools. Its main products are Rotary Tricone Bit, DTH Hammer & Bit for mining, water well, and oil-field drilling applications, oil drilling, and mining cemented carbide, carbide substrates for PDC bits, petroleum drill bit nozzle, ultra-fine cemented carbide rod, fine grain cutting tools, stamping die plate, cold heading dies, powder metallurgy dies, tungsten carbide tubular welding, wear parts, non-standard parts. It exports to South America, Africa, Australia, Russia, South Korea, the USA, Canada and other countries.
78GF Score
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