Nextool Technology Co (SHSE:688419) Operating Margin %: 19.08% (As of Mar. 2026) — 15% Below Median

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SHSE:688419 Nextool Technology Co Ltd SHSE:688419
75 GF Score
Price ¥39.60
GF Value ¥29.04
Valuation Significantly Overvalued
! 2 Warning Signs
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What is Nextool Technology Co Operating Margin %?

Nextool Technology Co SHSE:688419 -1.54% 75 Operating Margin % is 19.08% as of Mar. 2026, which is 15% below its 10-year median of 22.34. GuruFocus rates SHSE:688419 with a GF Score™ of 75/100 and a GF Value™ of ¥29.04 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 3,036 Industrial Products companies, Nextool Technology Co ranks better than 95.03% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Nextool Technology Co's Operating Income for the three months ended in Mar. 2026 was ¥13.1 Mil. Nextool Technology Co's Revenue for the three months ended in Mar. 2026 was ¥68.6 Mil. Therefore, Nextool Technology Co's Operating Margin % for the quarter that ended in Mar. 2026 was 19.08%.

The historical rank and industry rank for Nextool Technology Co's Operating Margin % or its related term are showing as below:

SHSE:688419' s Operating Margin % Range Over the Past 10 Years
Min: 11.8   Med: 22.34   Max: 26.84
Current: 23.58


SHSE:688419's Operating Margin % is ranked better than
95.03% of 3036 companies
in the Industrial Products industry
Industry Median: 6.475 vs SHSE:688419: 23.58

Nextool Technology Co's 5-Year Average Operating Margin % Growth Rate was -0.90% per year.

Nextool Technology Co's Operating Income for the three months ended in Mar. 2026 was ¥13.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ¥69.6 Mil.


Nextool Technology Co  (SHSE:688419) 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 Nokia’s 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.


Nextool Technology Co Operating Margin % Related Terms


Nextool Technology Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Nextool Technology Co'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.

Nextool Technology Co Operating Margin % Chart

Nextool Technology Co Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial 22.60 23.44 21.34 22.08 26.11

Nextool Technology Co Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 29.98 25.44 30.32 18.71 19.08

SHSE:688419 vs GEV, ETN, PH: Operating Margin % Comparison

For the Specialty Industrial Machinery subindustry, Nextool 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.


Nextool Technology Co Operating Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Nextool Technology Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Nextool Technology Co's Operating Margin % falls into.


SHSE:688419
75GF Score
Nextool Technology Co Ltd SHSE:688419
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Nextool 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.

Nextool Technology Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=77.006 / 294.908
=26.11 %

Nextool Technology Co's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as

Operating Margin %=Operating Income (Q: Mar. 2026 ) / Revenue (Q: Mar. 2026 )
=13.097 / 68.632
=19.08 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 19.08% mean?
Nextool Technology Co (SHSE:688419) has a Operating Margin % of 19.08% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Nextool Technology Co and its competitors. This is 15% below median its historical median of 22.34. Over the past decade, Nextool Technology Co's Operating Margin % has ranged from 11.80 to 26.84. According to the industry distribution chart, Nextool Technology Co ranks #151 out of 3036 companies in the Industrial Products industry, placing it in the top 5%.
Is Nextool Technology Co's Operating Margin % too high?
Nextool Technology Co's current Operating Margin % of 19.08% is 15% below median its 10-year median of 22.34. Over the past 10 years, this metric has ranged from a low of 11.80 to a high of 26.84. The Industrial Products industry median Operating Margin % is 6.48. Nextool Technology Co's value of 19.08% is 194.7% above this industry median. Based on the distribution chart, Nextool Technology Co ranks #151 out of 3036 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Nextool Technology Co has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Nextool Technology Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Nextool Technology Co ranks #151 out of 3036 companies for Operating Margin %. This places Nextool Technology Co in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.48. Nextool Technology Co's value of 19.08% is 194.7% above this benchmark. Historically, Nextool Technology Co's own Operating Margin % has ranged from 11.80 to 26.84 over the past decade. While the company's 10-year median is 22.34 vs. the industry median of 6.48, Nextool 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.48, based on 3,036 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. Nextool Technology Co's current Operating Margin % of 19.08% is 194.7% 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 Nextool Technology Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nextool Technology Co's current Operating Margin % is 19.08%, which is 15% below median its own 10-year median of 22.34. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nextool Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Nextool Technology Co (SHSE:688419) is currently considered Significantly Overvalued. The stock's GF Value™ is ¥29.04, compared to a current price of ¥39.60 — trading 36.4% above its estimated fair value. The current Operating Margin % is 19.08%, which is 15% below median its 10-year median of 22.34 and 194.7% above the Industrial Products industry median of 6.48. Nextool Technology Co's overall GF Score™ is 75/100 with 2 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 Nextool Technology Co (SHSE:688419), the current Operating Margin % is 19.08% 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 Nextool Technology Co (SHSE:688419) Overvalued in 2026?

Based on GuruFocus' analysis, Nextool Technology Co stock appears to be overvalued. The current stock price of ¥39.60 is trading 36.4% above its estimated GF Value™ of ¥29.04. GuruFocus considers Nextool Technology Co to be Significantly Overvalued.

Key valuation signals for SHSE:688419:

  • Operating Margin %: 19.08% (15% below median its 10-year median of 22.34)
  • GF Value™: ¥29.04 vs. price of ¥39.60 (36.4% above fair value)
  • GF Score™: 75/100 with 2 warning signs
  • Industry Position: 194.7% above the Industrial Products median (#151 of 3036)

No single metric tells the full story. See the SHSE:688419 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Nextool Technology Co Business Description

Address Economic and Technological Development Zone, Anhui Province, Tongling, CHN, 244061
Nextool Technology Co Ltd is engaged in the research and development, production and sales of intelligent manufacturing equipment used in plastic extrusion molding and semiconductor packaging.
75GF Score

Get the complete analysis for SHSE:688419

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥39.60
Price
¥29.04
GF Value