Shenzhen Investment Holdings Bay Area Development Co (OTCPK:SIHBY) 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 Investment Holdings Bay Area Development Co Operating Margin % Related Terms
Shenzhen Investment Holdings Bay Area Development 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 Investment Holdings Bay Area Development Co Operating Margin % Chart
Shenzhen Investment Holdings Bay Area Development Co Annual Data
Shenzhen Investment Holdings Bay Area Development Co Operating Margin % Competitor Comparison
For the Infrastructure Operations subindustry, Shenzhen Investment Holdings Bay Area Development 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 Investment Holdings Bay Area Development Co Operating Margin % vs Construction Industry
Shenzhen Investment Holdings Bay Area Development 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 Investment Holdings Bay Area Development Co (SIHBY) has a Operating Margin % of 33.77% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shenzhen Investment Holdings Bay Area Development Co and its competitors. This is 11% above median its historical median of 30.38. Over the past decade, Shenzhen Investment Holdings Bay Area Development Co's Operating Margin % has ranged from 14.26 to 37.04. According to the industry distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #70 out of 1767 companies in the Construction industry, placing it in the top 4%.
Is Shenzhen Investment Holdings Bay Area Development Co's Operating Margin % too high?
Shenzhen Investment Holdings Bay Area Development Co's current Operating Margin % of 33.77% is 11% above median its 10-year median of 30.38. Over the past 10 years, this metric has ranged from a low of 14.26 to a high of 37.04. The Construction industry median Operating Margin % is 5.89. Shenzhen Investment Holdings Bay Area Development Co's value of 33.77% is 473.3% above this industry median. Based on the distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #70 out of 1767 companies in the Construction industry, which is in the top quartile — a strong position relative to peers. Overall, Shenzhen Investment Holdings Bay Area Development Co has a GF Score™ of 59/100, reflecting its overall financial health beyond just this single metric.
How does Shenzhen Investment Holdings Bay Area Development Co's Operating Margin % compare to competitors?
According to the Construction industry distribution chart, Shenzhen Investment Holdings Bay Area Development Co ranks #70 out of 1767 companies for Operating Margin %. This places Shenzhen Investment Holdings Bay Area Development Co in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.89. Shenzhen Investment Holdings Bay Area Development Co's value of 33.77% is 473.3% above this benchmark. Historically, Shenzhen Investment Holdings Bay Area Development Co's own Operating Margin % has ranged from 14.26 to 37.04 over the past decade. While the company's 10-year median is 30.38 vs. the industry median of 5.89, Shenzhen Investment Holdings Bay Area Development 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 Construction company?
The median Operating Margin % among Construction companies is 5.89, based on 1,767 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 Investment Holdings Bay Area Development Co's current Operating Margin % of 33.77% is 473.3% 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 Investment Holdings Bay Area Development Co and its competitors. For the Construction industry, the median Operating Margin % is 5.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shenzhen Investment Holdings Bay Area Development Co's current Operating Margin % is 33.77%, which is 11% above median its own 10-year median of 30.38. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shenzhen Investment Holdings Bay Area Development Co stock overvalued right now?
Shenzhen Investment Holdings Bay Area Development Co (SIHBY) has a current Operating Margin % of 33.77%. The stock's GF Value™ is $2.17, compared to a current price of $2.40 — trading 10.6% above its estimated fair value. The current Operating Margin % is 33.77%, which is 11% above median its 10-year median of 30.38 and 473.3% above the Construction industry median of 5.89. Shenzhen Investment Holdings Bay Area Development Co's overall GF Score™ is 59/100 with 9 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 Investment Holdings Bay Area Development Co (SIHBY), the current Operating Margin % is 33.77% 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 Shenzhen Investment Holdings Bay Area Development Co (SIHBY) Overvalued in 2026?
Based on GuruFocus' analysis, Shenzhen Investment Holdings Bay Area Development Co stock appears to be overvalued.
The current stock price of $2.40 is trading 10.6% above its estimated GF Value™ of $2.17.
Key valuation signals for SIHBY:
Operating Margin %: 33.77% (11% above median its 10-year median of 30.38)
GF Value™: $2.17 vs. price of $2.40 (10.6% above fair value)
Industry Position: 473.3% above the Construction median (#70 of 1767)
No single metric tells the full story. See the SIHBY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shenzhen Investment Holdings Bay Area Development Co Business Description
Shenzhen Investment Holdings Bay Area Development Co Ltd is an investment holding company that is engaged in expressway business and adopts development strategies focusing on the infrastructure and correlated business, as well as land development and utilisation along the GS Superhighway within the Guangdong-Hong Kong-Macao Greater Bay Area in China. The company manages its business in four segments, namely the Guangzhou-Shenzhen Superhighway, the Guangzhou-Zhuhai West Superhighway, the Coastal Expressway, and the Xintang Interchange. It generates the majority of the revenue from the Guangzhou-Shenzhen Superhighway segment.
59GF 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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