Ningbo Solartron Technology Co (SHSE:688299) 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.
Ningbo Solartron Technology Co Operating Margin % Related Terms
Ningbo Solartron Technology 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.
Ningbo Solartron Technology Co Operating Margin % Chart
SHSE:688299 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Ningbo Solartron Technology 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.
Ningbo Solartron Technology Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Ningbo Solartron Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ningbo Solartron Technology Co's Operating Margin % falls into.
Ningbo Solartron Technology 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.
Ningbo Solartron Technology Co (SHSE:688299) has a Operating Margin % of 9.38% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Ningbo Solartron Technology Co and its competitors. This is 31% below median its historical median of 13.50. Over the past decade, Ningbo Solartron Technology Co's Operating Margin % has ranged from 5.87 to 19.83. According to the industry distribution chart, Ningbo Solartron Technology Co ranks #813 out of 1585 companies in the Chemicals industry, placing it in the top 51.3%.
Is Ningbo Solartron Technology Co's Operating Margin % too high?
Ningbo Solartron Technology Co's current Operating Margin % of 9.38% is 31% below median its 10-year median of 13.50. Over the past 10 years, this metric has ranged from a low of 5.87 to a high of 19.83. The Chemicals industry median Operating Margin % is 6.02. Ningbo Solartron Technology Co's value of 9.38% is 55.8% above this industry median. Based on the distribution chart, Ningbo Solartron Technology Co ranks #813 out of 1585 companies in the Chemicals industry, which is below the industry midpoint. Overall, Ningbo Solartron Technology Co has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ningbo Solartron Technology Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Ningbo Solartron Technology Co ranks #813 out of 1585 companies for Operating Margin %. This places Ningbo Solartron Technology Co in the lower half of its industry. The industry median Operating Margin % is 6.02. Ningbo Solartron Technology Co's value of 9.38% is 55.8% above this benchmark. Historically, Ningbo Solartron Technology Co's own Operating Margin % has ranged from 5.87 to 19.83 over the past decade. While the company's 10-year median is 13.50 vs. the industry median of 6.02, Ningbo Solartron Technology 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 a Chemicals company?
The median Operating Margin % among Chemicals companies is 6.02, based on 1,585 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. Ningbo Solartron Technology Co's current Operating Margin % of 9.38% is 55.8% 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 Ningbo Solartron Technology Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ningbo Solartron Technology Co's current Operating Margin % is 9.38%, which is 31% below median its own 10-year median of 13.50. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ningbo Solartron Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Ningbo Solartron Technology Co (SHSE:688299) is currently considered Fairly Valued. The stock's GF Value™ is ¥14.68, compared to a current price of ¥16.13 — trading 9.9% above its estimated fair value. The current Operating Margin % is 9.38%, which is 31% below median its 10-year median of 13.50 and 55.8% above the Chemicals industry median of 6.02. Ningbo Solartron Technology Co's overall GF Score™ is 70/100 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 Ningbo Solartron Technology Co (SHSE:688299), the current Operating Margin % is 9.38% 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 Ningbo Solartron Technology Co (SHSE:688299) Overvalued in 2026?
Based on GuruFocus' analysis, Ningbo Solartron Technology Co stock appears to be overvalued.
The current stock price of ¥16.13 is trading 9.9% above its estimated GF Value™ of ¥14.68.
GuruFocus considers Ningbo Solartron Technology Co to be Fairly Valued.
Key valuation signals for SHSE:688299:
Operating Margin %: 9.38% (31% below median its 10-year median of 13.50)
GF Value™: ¥14.68 vs. price of ¥16.13 (9.9% above fair value)
Industry Position: 55.8% above the Chemicals median (#813 of 1585)
No single metric tells the full story. See the SHSE:688299 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ningbo Solartron Technology Co Business Description
Ningbo Solartron Technology Co Ltd is mainly engaged in the research, development, production and sales of reflective film, backing base film, optical base film and other special functional films. The main products are reflective film, backing base film, optical base film and other high performance functional films. Used in liquid crystal display, semiconductor lighting, new energy, semiconductor flexible circuit boards and other fields.
70GF Score
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