Shanghai Gentech CoSHSE:688596 +20.00%84 Operating Margin % is 1.68% as of Mar. 2026, which is 84% below its 10-year median of 10.38. GuruFocus rates SHSE:688596 with a GF Score™ of 84/100 and a GF Value™ of ¥45.59 (Modestly Overvalued). The stock has 17 warning signs investors should review. Among 3,038 Industrial Products companies, Shanghai Gentech Co ranks worse than 53.29% on this metric.
Shanghai Gentech Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.5%.
The historical rank and industry rank for Shanghai Gentech Co's Operating Margin % or its related term are showing as below:
SHSE:688596'
s Operating Margin % Range Over the Past 10 Years
Min: 4.71 Med: 10.38 Max: 13.53
Current: 5.85
SHSE:688596's Operating Margin % is ranked worse than 53.29% of 3038
companies
in the Industrial Products industry
Industry Median: 6.53
vs SHSE:688596: 5.85
Shanghai Gentech Co's 5-Year Average Operating Margin % Growth Rate was -4.50% per year.
Shanghai Gentech Co (SHSE:688596) 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.
Shanghai Gentech Co Operating Margin % Related Terms
Shanghai Gentech Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Shanghai Gentech 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:688596 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Shanghai Gentech 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.
Shanghai Gentech Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Shanghai Gentech Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Gentech Co's Operating Margin % falls into.
Shanghai Gentech 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.
Shanghai Gentech 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.
Shanghai Gentech Co (SHSE:688596) has a Operating Margin % of 1.68% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai Gentech Co and its competitors. This is 84% below median its historical median of 10.38. Over the past decade, Shanghai Gentech Co's Operating Margin % has ranged from 4.71 to 13.53. According to the industry distribution chart, Shanghai Gentech Co ranks #1619 out of 3038 companies in the Industrial Products industry, placing it in the top 53.3%.
Is Shanghai Gentech Co's Operating Margin % too high?
Shanghai Gentech Co's current Operating Margin % of 1.68% is 84% below median its 10-year median of 10.38. Over the past 10 years, this metric has ranged from a low of 4.71 to a high of 13.53. The Industrial Products industry median Operating Margin % is 6.53. Shanghai Gentech Co's value of 1.68% is 74.3% below this industry median. Based on the distribution chart, Shanghai Gentech Co ranks #1619 out of 3038 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Shanghai Gentech Co has a GF Score™ of 84/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Gentech Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Shanghai Gentech Co ranks #1619 out of 3038 companies for Operating Margin %. This places Shanghai Gentech Co in the lower half of its industry. The industry median Operating Margin % is 6.53. Shanghai Gentech Co's value of 1.68% is 74.3% below this benchmark. Historically, Shanghai Gentech Co's own Operating Margin % has ranged from 4.71 to 13.53 over the past decade. While the company's 10-year median is 10.38 vs. the industry median of 6.53, Shanghai Gentech Co has consistently been below 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 6.53, based on 3,038 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. Shanghai Gentech Co's current Operating Margin % of 1.68% is 74.3% below 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 Shanghai Gentech Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Gentech Co's current Operating Margin % is 1.68%, which is 84% below median its own 10-year median of 10.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Gentech Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Gentech Co (SHSE:688596) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥45.59, compared to a current price of ¥56.22 — trading 23.3% above its estimated fair value. The current Operating Margin % is 1.68%, which is 84% below median its 10-year median of 10.38 and 74.3% below the Industrial Products industry median of 6.53. Shanghai Gentech Co's overall GF Score™ is 84/100 with 17 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 Shanghai Gentech Co (SHSE:688596), the current Operating Margin % is 1.68% 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 Shanghai Gentech Co (SHSE:688596) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Gentech Co stock appears to be overvalued.
The current stock price of ¥56.22 is trading 23.3% above its estimated GF Value™ of ¥45.59.
GuruFocus considers Shanghai Gentech Co to be Modestly Overvalued.
Key valuation signals for SHSE:688596:
Operating Margin %: 1.68% (84% below median its 10-year median of 10.38)
GF Value™: ¥45.59 vs. price of ¥56.22 (23.3% above fair value)
Industry Position: 74.3% below the Industrial Products median (#1619 of 3038)
No single metric tells the full story. See the SHSE:688596 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Gentech Co Ltd is engaged in designing, production, installation and supporting services of gas chemical supply system. The company is also engaged in designing and installation of water treatment systems, recycling system, clean fluid system, and other systems.
84GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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