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Shenzhen Sine Electric CoSHSE:688395 +2.69%71 Operating Margin % is 12.43% as of Mar. 2026, which is 20% below its 10-year median of 15.58. GuruFocus rates SHSE:688395 with a GF Score™ of 71/100 and a GF Value™ of ¥31.80 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 3,035 Industrial Products companies, Shenzhen Sine Electric Co ranks better than 68.8% on this metric.
Shenzhen Sine Electric Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -14.5%.
The historical rank and industry rank for Shenzhen Sine Electric Co's Operating Margin % or its related term are showing as below:
SHSE:688395'
s Operating Margin % Range Over the Past 10 Years
Min: 6.88 Med: 15.58 Max: 100
Current: 10.64
SHSE:688395's Operating Margin % is ranked better than 68.8% of 3035
companies
in the Industrial Products industry
Industry Median: 6.49
vs SHSE:688395: 10.64
Shenzhen Sine Electric Co (SHSE:688395) 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.
Shenzhen Sine Electric Co Operating Margin % Related Terms
Shenzhen Sine Electric 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.
Shenzhen Sine Electric Co Operating Margin % Chart
SHSE:688395 vs VRT, BE: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Shenzhen Sine Electric 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.
Shenzhen Sine Electric Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shenzhen Sine Electric Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shenzhen Sine Electric Co's Operating Margin % falls into.
Shenzhen Sine Electric 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.
Shenzhen Sine Electric 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.
Shenzhen Sine Electric Co (SHSE:688395) has a Operating Margin % of 12.43% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shenzhen Sine Electric Co and its competitors. This is 20% below median its historical median of 15.58. Over the past decade, Shenzhen Sine Electric Co's Operating Margin % has ranged from 6.88 to 100.00. According to the industry distribution chart, Shenzhen Sine Electric Co ranks #947 out of 3035 companies in the Industrial Products industry, placing it in the top 31.2%.
Is Shenzhen Sine Electric Co's Operating Margin % too high?
Shenzhen Sine Electric Co's current Operating Margin % of 12.43% is 20% below median its 10-year median of 15.58. Over the past 10 years, this metric has ranged from a low of 6.88 to a high of 100.00. The Industrial Products industry median Operating Margin % is 6.49. Shenzhen Sine Electric Co's value of 12.43% is 91.5% above this industry median. Based on the distribution chart, Shenzhen Sine Electric Co ranks #947 out of 3035 companies in the Industrial Products industry, which is above the industry midpoint. Overall, Shenzhen Sine Electric Co has a GF Score™ of 71/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Sine Electric Co's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Shenzhen Sine Electric Co ranks #947 out of 3035 companies for Operating Margin %. This puts Shenzhen Sine Electric Co in the upper half of its industry. The industry median Operating Margin % is 6.49. Shenzhen Sine Electric Co's value of 12.43% is 91.5% above this benchmark. Historically, Shenzhen Sine Electric Co's own Operating Margin % has ranged from 6.88 to 100.00 over the past decade. While the company's 10-year median is 15.58 vs. the industry median of 6.49, Shenzhen Sine Electric 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 6.49, 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. Shenzhen Sine Electric Co's current Operating Margin % of 12.43% is 91.5% 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 Shenzhen Sine Electric Co 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. Shenzhen Sine Electric Co's current Operating Margin % is 12.43%, which is 20% below median its own 10-year median of 15.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Sine Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Sine Electric Co (SHSE:688395) is currently considered Possible Value Trap. The stock's GF Value™ is ¥31.80, compared to a current price of ¥19.82 — trading 37.7% below its estimated fair value. The current Operating Margin % is 12.43%, which is 20% below median its 10-year median of 15.58 and 91.5% above the Industrial Products industry median of 6.49. Shenzhen Sine Electric Co's overall GF Score™ is 71/100 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 Shenzhen Sine Electric Co (SHSE:688395), the current Operating Margin % is 12.43% 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 Shenzhen Sine Electric Co (SHSE:688395) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Sine Electric Co stock appears to be undervalued.
The current stock price of ¥19.82 is trading 37.7% below its estimated GF Value™ of ¥31.80.
GuruFocus considers Shenzhen Sine Electric Co to be Possible Value Trap.
Key valuation signals for SHSE:688395:
Operating Margin %: 12.43% (20% below median its 10-year median of 15.58)
GF Value™: ¥31.80 vs. price of ¥19.82 (37.7% below fair value)
Industry Position: 91.5% above the Industrial Products median (#947 of 3035)
No single metric tells the full story. See the SHSE:688395 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Sine Electric Co Ltd is engaged in the research and development, production, and sales of motor drive and control system products in the field of industrial automation. It mainly provides inverters, integrated special machines, servo system products, and system solutions for mechanical equipment manufacturers and electronic control system integrators. Along with its domestic market business, the company also exports its products to Southeast Asia, the Middle East, Eastern Europe, South America, Africa, and other regions.
71GF Score
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