China Overseas Land & Investment (STU:CPP) 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.
China Overseas Land & Investment Operating Margin % Related Terms
China Overseas Land & Investment 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.
China Overseas Land & Investment Operating Margin % Chart
China Overseas Land & Investment Operating Margin % Competitor Comparison
For the Real Estate - Development subindustry, China Overseas Land & Investment'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.
China Overseas Land & Investment Operating Margin % vs Real Estate Industry
For the Real Estate industry and Real Estate sector, China Overseas Land & Investment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Overseas Land & Investment's Operating Margin % falls into.
China Overseas Land & Investment 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.
China Overseas Land & Investment (STU:CPP) has a Operating Margin % of 7.90% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Overseas Land & Investment and its competitors. This is 65% below median its historical median of 22.79. Over the past decade, China Overseas Land & Investment's Operating Margin % has ranged from 10.68 to 34.54. According to the industry distribution chart, China Overseas Land & Investment ranks #964 out of 1745 companies in the Real Estate industry, placing it in the top 55.2%.
Is China Overseas Land & Investment's Operating Margin % too high?
China Overseas Land & Investment's current Operating Margin % of 7.90% is 65% below median its 10-year median of 22.79. Over the past 10 years, this metric has ranged from a low of 10.68 to a high of 34.54. The Real Estate industry median Operating Margin % is 13.23. China Overseas Land & Investment's value of 7.90% is 40.3% below this industry median. Based on the distribution chart, China Overseas Land & Investment ranks #964 out of 1745 companies in the Real Estate industry, which is below the industry midpoint. Overall, China Overseas Land & Investment has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Overseas Land & Investment's Operating Margin % compare to competitors?
According to the Real Estate industry distribution chart, China Overseas Land & Investment ranks #964 out of 1745 companies for Operating Margin %. This places China Overseas Land & Investment in the lower half of its industry. The industry median Operating Margin % is 13.23. China Overseas Land & Investment's value of 7.90% is 40.3% below this benchmark. Historically, China Overseas Land & Investment's own Operating Margin % has ranged from 10.68 to 34.54 over the past decade. While the company's 10-year median is 22.79 vs. the industry median of 13.23, China Overseas Land & Investment has consistently been below 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 Real Estate company?
The median Operating Margin % among Real Estate companies is 13.23, based on 1,745 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. China Overseas Land & Investment's current Operating Margin % of 7.90% is 40.3% below 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 China Overseas Land & Investment and its competitors. For the Real Estate industry, the median Operating Margin % is 13.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Overseas Land & Investment's current Operating Margin % is 7.90%, which is 65% below median its own 10-year median of 22.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Overseas Land & Investment stock overvalued right now?
Based on GuruFocus' analysis, China Overseas Land & Investment (STU:CPP) is currently considered Fairly Valued. The stock's GF Value™ is €1.44, compared to a current price of €1.43 — trading 0.7% below its estimated fair value. The current Operating Margin % is 7.90%, which is 65% below median its 10-year median of 22.79 and 40.3% below the Real Estate industry median of 13.23. China Overseas Land & Investment's overall GF Score™ is 70/100 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 China Overseas Land & Investment (STU:CPP), the current Operating Margin % is 7.90% 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 China Overseas Land & Investment (STU:CPP) Overvalued in 2026?
Based on GuruFocus' analysis, China Overseas Land & Investment stock appears to be undervalued.
The current stock price of €1.43 is trading 0.7% below its estimated GF Value™ of €1.44.
GuruFocus considers China Overseas Land & Investment to be Fairly Valued.
Key valuation signals for STU:CPP:
Operating Margin %: 7.90% (65% below median its 10-year median of 22.79)
GF Value™: €1.44 vs. price of €1.43 (0.7% below fair value)
Industry Position: 40.3% below the Real Estate median (#964 of 1745)
No single metric tells the full story. See the STU:CPP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Overseas Land & Investment Business Description
China Overseas Land & Investment is a large real estate developer in China. Property development accounts for most of the earnings, with property sales scale among the top five of all peers regarding contracted sales. In addition to property development, COLI has actively grown its commercial property portfolio, with a dual focus on offices and shopping malls for recurring income. COLI is a subsidiary of China State Construction Engineering, China's largest construction firm. It also holds about a 40% stake in China Overseas Grand Oceans, a real estate developer focusing on lower-tier cities in China.
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