China Water Affairs GroupSTU:CUBB -0.79%41 Operating Margin % is 28.40% as of Sep. 2025, which is 7% below its 10-year median of 30.65. GuruFocus rates STU:CUBB with a GF Score™ of 41/100 and a GF Value™ of €0.44 (Modestly Overvalued). The stock has 10 warning signs investors should review. Among 499 Utilities - Regulated companies, China Water Affairs Group ranks better than 77.76% on this metric.
China Water Affairs Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -4.4%.
The historical rank and industry rank for China Water Affairs Group's Operating Margin % or its related term are showing as below:
STU:CUBB'
s Operating Margin % Range Over the Past 10 Years
Min: 24.79 Med: 30.65 Max: 34.42
Current: 24.79
STU:CUBB's Operating Margin % is ranked better than 77.76% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs STU:CUBB: 24.79
China Water Affairs Group (STU:CUBB) 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 Water Affairs Group Operating Margin % Related Terms
China Water Affairs Group 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 Water Affairs Group Operating Margin % Chart
STU:CUBB vs AWK, WTRG: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, China Water Affairs Group'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 Water Affairs Group Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, China Water Affairs Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China Water Affairs Group's Operating Margin % falls into.
China Water Affairs Group 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.
China Water Affairs Group's Operating Margin % for the fiscal year that ended in Mar. 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.
China Water Affairs Group (STU:CUBB) has a Operating Margin % of 28.40% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China Water Affairs Group and its competitors. This is near median its historical median of 30.65. Over the past decade, China Water Affairs Group's Operating Margin % has ranged from 24.79 to 34.42. According to the industry distribution chart, China Water Affairs Group ranks #111 out of 499 companies in the Utilities - Regulated industry, placing it in the top 22.2%.
Is China Water Affairs Group's Operating Margin % too high?
China Water Affairs Group's current Operating Margin % of 28.40% is near median its 10-year median of 30.65. Over the past 10 years, this metric has ranged from a low of 24.79 to a high of 34.42. The Utilities - Regulated industry median Operating Margin % is 14.97. China Water Affairs Group's value of 28.40% is 89.7% above this industry median. Based on the distribution chart, China Water Affairs Group ranks #111 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, China Water Affairs Group has a GF Score™ of 41/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does China Water Affairs Group's Operating Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, China Water Affairs Group ranks #111 out of 499 companies for Operating Margin %. This places China Water Affairs Group in the top 22% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. China Water Affairs Group's value of 28.40% is 89.7% above this benchmark. Historically, China Water Affairs Group's own Operating Margin % has ranged from 24.79 to 34.42 over the past decade. While the company's 10-year median is 30.65 vs. the industry median of 14.97, China Water Affairs Group 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 Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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 Water Affairs Group's current Operating Margin % of 28.40% is 89.7% 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 China Water Affairs Group and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Water Affairs Group's current Operating Margin % is 28.40%, which is near median its own 10-year median of 30.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Water Affairs Group stock overvalued right now?
Based on GuruFocus' analysis, China Water Affairs Group (STU:CUBB) is currently considered Modestly Overvalued. The stock's GF Value™ is €0.44, compared to a current price of €0.50 — trading 14.5% above its estimated fair value. The current Operating Margin % is 28.40%, which is near median its 10-year median of 30.65 and 89.7% above the Utilities - Regulated industry median of 14.97. China Water Affairs Group's overall GF Score™ is 41/100 with 10 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 Water Affairs Group (STU:CUBB), the current Operating Margin % is 28.40% as of Sep. 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 Water Affairs Group (STU:CUBB) Overvalued in 2026?
Based on GuruFocus' analysis, China Water Affairs Group stock appears to be overvalued.
The current stock price of €0.50 is trading 14.5% above its estimated GF Value™ of €0.44.
GuruFocus considers China Water Affairs Group to be Modestly Overvalued.
Key valuation signals for STU:CUBB:
Operating Margin %: 28.40% (near median its 10-year median of 30.65)
GF Value™: €0.44 vs. price of €0.50 (14.5% above fair value)
Industry Position: 89.7% above the Utilities - Regulated median (#111 of 499)
No single metric tells the full story. See the STU:CUBB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Water Affairs Group Ltd is a Chinese water utility company that builds, operates, and invests in water affairs projects in China. The firm's primary segments include City water supply operation, main contractor construction, Environmental protection, and Pipeline direct drinking water supply. It generates a majority of its revenue from the City water supply operation segment. Geographically, the company generates a maximum share of its revenue from the People's Republic of China.
41GF Score
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