Hangzhou Toka Ink CoSHSE:688571 -3.37%83 Operating Margin % is 10.26% as of Mar. 2026, which is 6% above its 10-year median of 9.64. GuruFocus rates SHSE:688571 with a GF Score™ of 83/100 and a GF Value™ of ¥7.37 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 1,575 Chemicals companies, Hangzhou Toka Ink Co ranks better than 67.56% on this metric.
Hangzhou Toka Ink Co (SHSE:688571) 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.
Hangzhou Toka Ink Co Operating Margin % Related Terms
Hangzhou Toka Ink Co Operating Margin % Historical Data
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The historical data trend for Hangzhou Toka Ink 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.
SHSE:688571 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Hangzhou Toka Ink 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.
Hangzhou Toka Ink Co Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Hangzhou Toka Ink Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Hangzhou Toka Ink Co's Operating Margin % falls into.
Hangzhou Toka Ink 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.
Hangzhou Toka Ink 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.
Hangzhou Toka Ink Co (SHSE:688571) has a Operating Margin % of 10.26% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hangzhou Toka Ink Co and its competitors. This is near median its historical median of 9.64. Over the past decade, Hangzhou Toka Ink Co's Operating Margin % has ranged from 6.08 to 11.72. According to the industry distribution chart, Hangzhou Toka Ink Co ranks #511 out of 1575 companies in the Chemicals industry, placing it in the top 32.4%.
Is Hangzhou Toka Ink Co's Operating Margin % too high?
Hangzhou Toka Ink Co's current Operating Margin % of 10.26% is near median its 10-year median of 9.64. Over the past 10 years, this metric has ranged from a low of 6.08 to a high of 11.72. The Chemicals industry median Operating Margin % is 6.03. Hangzhou Toka Ink Co's value of 10.26% is 70.1% above this industry median. Based on the distribution chart, Hangzhou Toka Ink Co ranks #511 out of 1575 companies in the Chemicals industry, which is above the industry midpoint. Overall, Hangzhou Toka Ink Co has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hangzhou Toka Ink Co's Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Hangzhou Toka Ink Co ranks #511 out of 1575 companies for Operating Margin %. This puts Hangzhou Toka Ink Co in the upper half of its industry. The industry median Operating Margin % is 6.03. Hangzhou Toka Ink Co's value of 10.26% is 70.1% above this benchmark. Historically, Hangzhou Toka Ink Co's own Operating Margin % has ranged from 6.08 to 11.72 over the past decade. While the company's 10-year median is 9.64 vs. the industry median of 6.03, Hangzhou Toka Ink 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 6.03, based on 1,575 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. Hangzhou Toka Ink Co's current Operating Margin % of 10.26% is 70.1% 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 Hangzhou Toka Ink Co and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hangzhou Toka Ink Co's current Operating Margin % is 10.26%, which is near median its own 10-year median of 9.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hangzhou Toka Ink Co stock overvalued right now?
Based on GuruFocus' analysis, Hangzhou Toka Ink Co (SHSE:688571) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥7.37, compared to a current price of ¥9.17 — trading 24.4% above its estimated fair value. The current Operating Margin % is 10.26%, which is near median its 10-year median of 9.64 and 70.1% above the Chemicals industry median of 6.03. Hangzhou Toka Ink Co's overall GF Score™ is 83/100 with 7 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 Hangzhou Toka Ink Co (SHSE:688571), the current Operating Margin % is 10.26% 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 Hangzhou Toka Ink Co (SHSE:688571) Overvalued in 2026?
Based on GuruFocus' analysis, Hangzhou Toka Ink Co stock appears to be overvalued.
The current stock price of ¥9.17 is trading 24.4% above its estimated GF Value™ of ¥7.37.
GuruFocus considers Hangzhou Toka Ink Co to be Modestly Overvalued.
Key valuation signals for SHSE:688571:
Operating Margin %: 10.26% (near median its 10-year median of 9.64)
GF Value™: ¥7.37 vs. price of ¥9.17 (24.4% above fair value)
Industry Position: 70.1% above the Chemicals median (#511 of 1575)
No single metric tells the full story. See the SHSE:688571 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Hangzhou Toka Ink Co Ltd is involved in the production and sales of energy-saving and environmentally friendly ink products. It offers various ink product such as Web offset printing ink, Gravure ink, water-based ink, special ink and others.
83GF Score
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