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Shenzhen Sunmoon Microelectronics Co (SHSE:688699) 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.
Shenzhen Sunmoon Microelectronics Co Operating Margin % Related Terms
Shenzhen Sunmoon Microelectronics 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.
Shenzhen Sunmoon Microelectronics Co Operating Margin % Chart
SHSE:688699 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Shenzhen Sunmoon Microelectronics 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.
Shenzhen Sunmoon Microelectronics Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Shenzhen Sunmoon Microelectronics Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shenzhen Sunmoon Microelectronics Co's Operating Margin % falls into.
Shenzhen Sunmoon Microelectronics 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.
Shenzhen Sunmoon Microelectronics Co (SHSE:688699) has a Operating Margin % of 23.59% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shenzhen Sunmoon Microelectronics Co and its competitors. This is 67% above median its historical median of 14.13. According to the industry distribution chart, Shenzhen Sunmoon Microelectronics Co ranks #739 out of 2472 companies in the Hardware industry, placing it in the top 29.9%.
Is Shenzhen Sunmoon Microelectronics Co's Operating Margin % too high?
Shenzhen Sunmoon Microelectronics Co's current Operating Margin % of 23.59% is 67% above median its 10-year median of 14.13. The Hardware industry median Operating Margin % is 4.11. Shenzhen Sunmoon Microelectronics Co's value of 23.59% is 474.7% above this industry median. Based on the distribution chart, Shenzhen Sunmoon Microelectronics Co ranks #739 out of 2472 companies in the Hardware industry, which is above the industry midpoint. Overall, Shenzhen Sunmoon Microelectronics Co has a GF Score™ of 73/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Sunmoon Microelectronics Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Shenzhen Sunmoon Microelectronics Co ranks #739 out of 2472 companies for Operating Margin %. This puts Shenzhen Sunmoon Microelectronics Co in the upper half of its industry. The industry median Operating Margin % is 4.11. Shenzhen Sunmoon Microelectronics Co's value of 23.59% is 474.7% above this benchmark. While the company's 10-year median is 14.13 vs. the industry median of 4.11, Shenzhen Sunmoon Microelectronics 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 4.11, based on 2,472 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. Shenzhen Sunmoon Microelectronics Co's current Operating Margin % of 23.59% is 474.7% 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 Shenzhen Sunmoon Microelectronics Co and its competitors. For the Hardware industry, the median Operating Margin % is 4.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Sunmoon Microelectronics Co's current Operating Margin % is 23.59%, which is 67% above median its own 10-year median of 14.13. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Sunmoon Microelectronics Co stock overvalued right now?
Based on GuruFocus' analysis, Shenzhen Sunmoon Microelectronics Co (SHSE:688699) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥50.82, compared to a current price of ¥57.99 — trading 14.1% above its estimated fair value. The current Operating Margin % is 23.59%, which is 67% above median its 10-year median of 14.13 and 474.7% above the Hardware industry median of 4.11. Shenzhen Sunmoon Microelectronics Co's overall GF Score™ is 73/100 with 5 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 Shenzhen Sunmoon Microelectronics Co (SHSE:688699), the current Operating Margin % is 23.59% as of Jun. 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 Shenzhen Sunmoon Microelectronics Co (SHSE:688699) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Sunmoon Microelectronics Co stock appears to be overvalued.
The current stock price of ¥57.99 is trading 14.1% above its estimated GF Value™ of ¥50.82.
GuruFocus considers Shenzhen Sunmoon Microelectronics Co to be Modestly Overvalued.
Key valuation signals for SHSE:688699:
Operating Margin %: 23.59% (67% above median its 10-year median of 14.13)
GF Value™: ¥50.82 vs. price of ¥57.99 (14.1% above fair value)
Industry Position: 474.7% above the Hardware median (#739 of 2472)
No single metric tells the full story. See the SHSE:688699 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Sunmoon Microelectronics Co Ltd is engaged in the research and development design, packaging testing and sales of integrated circuit. Further, it is also involved in the technical development and related technical services of integrated circuits and related electronic application products.
73GF Score
Get the complete analysis for SHSE:688699
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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