Sinopharm Group CoSHTDF -2.67%78 Operating Margin % is 3.25% as of Dec. 2025, which is 20% below its 10-year median of 4.04. GuruFocus rates SHTDF with a GF Score™ of 78/100 and a GF Value™ of $2.78 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 119 Medical Distribution companies, Sinopharm Group Co ranks worse than 52.94% on this metric.
Sinopharm Group Co (OTCPK:SHTDF) 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.
Sinopharm Group Co Operating Margin % Related Terms
Sinopharm Group Co Operating Margin % Historical Data
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The historical data trend for Sinopharm Group 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.
SHTDF vs MCK, COR, CAH: Operating Margin % Comparison
For the Medical Distribution subindustry, Sinopharm Group 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.
Sinopharm Group Co Operating Margin % vs Medical Distribution Industry
For the Medical Distribution industry and Healthcare sector, Sinopharm Group Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Sinopharm Group Co's Operating Margin % falls into.
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.
Sinopharm Group 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.
Sinopharm Group Co (SHTDF) has a Operating Margin % of 3.25% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Sinopharm Group Co and its competitors. This is 20% below median its historical median of 4.04. Over the past decade, Sinopharm Group Co's Operating Margin % has ranged from 2.97 to 4.57. According to the industry distribution chart, Sinopharm Group Co ranks #63 out of 119 companies in the Medical Distribution industry, placing it in the top 52.9%.
Is Sinopharm Group Co's Operating Margin % too high?
Sinopharm Group Co's current Operating Margin % of 3.25% is 20% below median its 10-year median of 4.04. Over the past 10 years, this metric has ranged from a low of 2.97 to a high of 4.57. The Medical Distribution industry median Operating Margin % is 3.07. Sinopharm Group Co's value of 3.25% is 5.9% above this industry median. Based on the distribution chart, Sinopharm Group Co ranks #63 out of 119 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, Sinopharm Group Co has a GF Score™ of 78/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Sinopharm Group Co's Operating Margin % compare to MCK and COR?
According to the Medical Distribution industry distribution chart, Sinopharm Group Co ranks #63 out of 119 companies for Operating Margin %. This places Sinopharm Group Co in the lower half of its industry. The industry median Operating Margin % is 3.07. Sinopharm Group Co's value of 3.25% is 5.9% above this benchmark. Historically, Sinopharm Group Co's own Operating Margin % has ranged from 2.97 to 4.57 over the past decade. While the company's 10-year median is 4.04 vs. the industry median of 3.07, Sinopharm Group 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 Medical Distribution company?
The median Operating Margin % among Medical Distribution companies is 3.07, based on 119 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. Sinopharm Group Co's current Operating Margin % of 3.25% is 5.9% 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 Sinopharm Group Co and its competitors. For the Medical Distribution industry, the median Operating Margin % is 3.07 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Sinopharm Group Co's current Operating Margin % is 3.25%, which is 20% below median its own 10-year median of 4.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Sinopharm Group Co stock overvalued right now?
Based on GuruFocus' analysis, Sinopharm Group Co (SHTDF) is currently considered Modestly Undervalued. The stock's GF Value™ is $2.78, compared to a current price of $2.29 — trading 17.7% below its estimated fair value. The current Operating Margin % is 3.25%, which is 20% below median its 10-year median of 4.04 and 5.9% above the Medical Distribution industry median of 3.07. Sinopharm Group Co's overall GF Score™ is 78/100 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 Sinopharm Group Co (SHTDF), the current Operating Margin % is 3.25% as of Dec. 2025. 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 Sinopharm Group Co (SHTDF) Overvalued in 2026?
Based on GuruFocus' analysis, Sinopharm Group Co stock appears to be undervalued.
The current stock price of $2.29 is trading 17.7% below its estimated GF Value™ of $2.78.
GuruFocus considers Sinopharm Group Co to be Modestly Undervalued.
Key valuation signals for SHTDF:
Operating Margin %: 3.25% (20% below median its 10-year median of 4.04)
GF Value™: $2.78 vs. price of $2.29 (17.7% below fair value)
Industry Position: 5.9% above the Medical Distribution median (#63 of 119)
No single metric tells the full story. See the SHTDF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in 2003, Sinopharm is the largest wholesaler and retailer of drugs and medical devices in China and listed on the Hong Kong Stock Exchange in 2009. It is a core subsidiary of China National Pharmaceutical Group. Sinopharm's largest operating segment is pharmaceutical distribution, making up over 70% of its total revenue by the end of 2024. In 2018, Sinopharm acquired the largest Chinese medical device distributor, China National Scientific Instruments and Materials. Now, medical device distribution accounts for over 20% of Sinopharm's total revenue. Sinopharm's downstream customers range from hospitals and other health services institutions to end-customers.
78GF Score
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