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Suzhou Veichi Electric CoSHSE:688698 +2.32%94 Operating Margin % is 12.97% as of Mar. 2026, which is 15% below its 10-year median of 15.29. GuruFocus rates SHSE:688698 with a GF Score™ of 94/100 and a GF Value™ of ¥60.15 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 3,031 Industrial Products companies, Suzhou Veichi Electric Co ranks better than 80.34% on this metric.
Suzhou Veichi Electric Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.2%.
The historical rank and industry rank for Suzhou Veichi Electric Co's Operating Margin % or its related term are showing as below:
SHSE:688698'
s Operating Margin % Range Over the Past 10 Years
Min: 13.73 Med: 15.29 Max: 18.48
Current: 14.28
SHSE:688698's Operating Margin % is ranked better than 80.34% of 3031
companies
in the Industrial Products industry
Industry Median: 6.51
vs SHSE:688698: 14.28
Suzhou Veichi Electric Co (SHSE:688698) 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.
Suzhou Veichi Electric Co Operating Margin % Related Terms
Suzhou Veichi 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.
Suzhou Veichi Electric Co Operating Margin % Chart
SHSE:688698 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Suzhou Veichi 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.
Suzhou Veichi Electric Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Suzhou Veichi Electric Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Suzhou Veichi Electric Co's Operating Margin % falls into.
Suzhou Veichi 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.
Suzhou Veichi 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.
Suzhou Veichi Electric Co (SHSE:688698) has a Operating Margin % of 12.97% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Suzhou Veichi Electric Co and its competitors. This is 15% below median its historical median of 15.29. Over the past decade, Suzhou Veichi Electric Co's Operating Margin % has ranged from 13.73 to 18.48. According to the industry distribution chart, Suzhou Veichi Electric Co ranks #596 out of 3031 companies in the Industrial Products industry, placing it in the top 19.7%.
Is Suzhou Veichi Electric Co's Operating Margin % too high?
Suzhou Veichi Electric Co's current Operating Margin % of 12.97% is 15% below median its 10-year median of 15.29. Over the past 10 years, this metric has ranged from a low of 13.73 to a high of 18.48. The Industrial Products industry median Operating Margin % is 6.51. Suzhou Veichi Electric Co's value of 12.97% is 99.2% above this industry median. Based on the distribution chart, Suzhou Veichi Electric Co ranks #596 out of 3031 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Suzhou Veichi Electric Co has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Suzhou Veichi Electric Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Suzhou Veichi Electric Co ranks #596 out of 3031 companies for Operating Margin %. This places Suzhou Veichi Electric Co in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.51. Suzhou Veichi Electric Co's value of 12.97% is 99.2% above this benchmark. Historically, Suzhou Veichi Electric Co's own Operating Margin % has ranged from 13.73 to 18.48 over the past decade. While the company's 10-year median is 15.29 vs. the industry median of 6.51, Suzhou Veichi 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 6.51, based on 3,031 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. Suzhou Veichi Electric Co's current Operating Margin % of 12.97% is 99.2% 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 Suzhou Veichi Electric Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Suzhou Veichi Electric Co's current Operating Margin % is 12.97%, which is 15% below median its own 10-year median of 15.29. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Suzhou Veichi Electric Co stock overvalued right now?
Based on GuruFocus' analysis, Suzhou Veichi Electric Co (SHSE:688698) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥60.15, compared to a current price of ¥45.43 — trading 24.5% below its estimated fair value. The current Operating Margin % is 12.97%, which is 15% below median its 10-year median of 15.29 and 99.2% above the Industrial Products industry median of 6.51. Suzhou Veichi Electric Co's overall GF Score™ is 94/100 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 Suzhou Veichi Electric Co (SHSE:688698), the current Operating Margin % is 12.97% 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 Suzhou Veichi Electric Co (SHSE:688698) Overvalued in 2026?
Based on GuruFocus' analysis, Suzhou Veichi Electric Co stock appears to be undervalued.
The current stock price of ¥45.43 is trading 24.5% below its estimated GF Value™ of ¥60.15.
GuruFocus considers Suzhou Veichi Electric Co to be Modestly Undervalued.
Key valuation signals for SHSE:688698:
Operating Margin %: 12.97% (15% below median its 10-year median of 15.29)
GF Value™: ¥60.15 vs. price of ¥45.43 (24.5% below fair value)
Industry Position: 99.2% above the Industrial Products median (#596 of 3031)
No single metric tells the full story. See the SHSE:688698 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Suzhou Veichi Electric Co Ltd is engaged in the development, manufacturing and marketing of industrial automation control products. The products include Frequency Inverter, Servo System, Solar Pump Inverter, Automation Equipment and more, mainly serving smart factories, intelligent equipment's, robots, new energy and other applications.
94GF Score
Get the complete analysis for SHSE:688698
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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