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Cubic Sensor and Instrument Co (SHSE:688665) 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.
Cubic Sensor and Instrument Co Operating Margin % Related Terms
Cubic Sensor and Instrument 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.
Cubic Sensor and Instrument Co Operating Margin % Chart
SHSE:688665 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Cubic Sensor and Instrument 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.
Cubic Sensor and Instrument Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Cubic Sensor and Instrument Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cubic Sensor and Instrument Co's Operating Margin % falls into.
Cubic Sensor and Instrument 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.
Cubic Sensor and Instrument Co (SHSE:688665) has a Operating Margin % of 18.21% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cubic Sensor and Instrument Co and its competitors. This is 16% below median its historical median of 21.66. Over the past decade, Cubic Sensor and Instrument Co's Operating Margin % has ranged from 12.93 to 36.81. According to the industry distribution chart, Cubic Sensor and Instrument Co ranks #307 out of 2475 companies in the Hardware industry, placing it in the top 12.4%.
Is Cubic Sensor and Instrument Co's Operating Margin % too high?
Cubic Sensor and Instrument Co's current Operating Margin % of 18.21% is 16% below median its 10-year median of 21.66. Over the past 10 years, this metric has ranged from a low of 12.93 to a high of 36.81. The Hardware industry median Operating Margin % is 3.84. Cubic Sensor and Instrument Co's value of 18.21% is 374.2% above this industry median. Based on the distribution chart, Cubic Sensor and Instrument Co ranks #307 out of 2475 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Cubic Sensor and Instrument Co has a GF Score™ of 92/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Cubic Sensor and Instrument Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Cubic Sensor and Instrument Co ranks #307 out of 2475 companies for Operating Margin %. This places Cubic Sensor and Instrument Co in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.84. Cubic Sensor and Instrument Co's value of 18.21% is 374.2% above this benchmark. Historically, Cubic Sensor and Instrument Co's own Operating Margin % has ranged from 12.93 to 36.81 over the past decade. While the company's 10-year median is 21.66 vs. the industry median of 3.84, Cubic Sensor and Instrument 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.84, based on 2,475 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. Cubic Sensor and Instrument Co's current Operating Margin % of 18.21% is 374.2% 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 Cubic Sensor and Instrument Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cubic Sensor and Instrument Co's current Operating Margin % is 18.21%, which is 16% below median its own 10-year median of 21.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cubic Sensor and Instrument Co stock overvalued right now?
Based on GuruFocus' analysis, Cubic Sensor and Instrument Co (SHSE:688665) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥53.54, compared to a current price of ¥42.30 — trading 21% below its estimated fair value. The current Operating Margin % is 18.21%, which is 16% below median its 10-year median of 21.66 and 374.2% above the Hardware industry median of 3.84. Cubic Sensor and Instrument Co's overall GF Score™ is 92/100 with 6 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 Cubic Sensor and Instrument Co (SHSE:688665), the current Operating Margin % is 18.21% 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 Cubic Sensor and Instrument Co (SHSE:688665) Overvalued in 2026?
Based on GuruFocus' analysis, Cubic Sensor and Instrument Co stock appears to be undervalued.
The current stock price of ¥42.30 is trading 21% below its estimated GF Value™ of ¥53.54.
GuruFocus considers Cubic Sensor and Instrument Co to be Modestly Undervalued.
Key valuation signals for SHSE:688665:
Operating Margin %: 18.21% (16% below median its 10-year median of 21.66)
GF Value™: ¥53.54 vs. price of ¥42.30 (21% below fair value)
Industry Position: 374.2% above the Hardware median (#307 of 2475)
No single metric tells the full story. See the SHSE:688665 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cubic Sensor and Instrument Co Business Description
Cubic Sensor and Instrument Co Ltd is engaged in the research and development, production and sales of gas sensors and gas analysis instruments. Its products are used in applications including HVAC, industrial safety, automotive electronics, medical and healthcare, smart metering, scientific instruments, and thermal engineering.
92GF Score
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