Guangdong InvestmentSTU:GUG -0.14%39 Operating Margin % is 34.20% as of Dec. 2025, which is 10% below its 10-year median of 38.15. GuruFocus rates STU:GUG with a GF Score™ of 39/100 and a GF Value™ of €0.62 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 499 Utilities - Regulated companies, Guangdong Investment ranks better than 92.99% on this metric.
Guangdong Investment Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Guangdong Investment's Operating Margin % or its related term are showing as below:
STU:GUG'
s Operating Margin % Range Over the Past 10 Years
Min: 26.91 Med: 38.15 Max: 50.26
Current: 39.16
STU:GUG's Operating Margin % is ranked better than 92.99% of 499
companies
in the Utilities - Regulated industry
Industry Median: 14.97
vs STU:GUG: 39.16
Guangdong Investment's 5-Year Average Operating Margin % Growth Rate was 7.20% per year.
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.
Guangdong Investment Operating Margin % Related Terms
Guangdong Investment Operating Margin % Historical Data
* Premium members only.
The historical data trend for Guangdong Investment'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.
STU:GUG vs AWK, WTRG: Operating Margin % Comparison
For the Utilities - Regulated Water subindustry, Guangdong 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.
Guangdong Investment Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Guangdong Investment's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Guangdong Investment'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.
Guangdong Investment'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.
Guangdong Investment (STU:GUG) has a Operating Margin % of 34.20% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Guangdong Investment and its competitors. This is 10% below median its historical median of 38.15. Over the past decade, Guangdong Investment's Operating Margin % has ranged from 26.91 to 50.26. According to the industry distribution chart, Guangdong Investment ranks #35 out of 499 companies in the Utilities - Regulated industry, placing it in the top 7%.
Is Guangdong Investment's Operating Margin % too high?
Guangdong Investment's current Operating Margin % of 34.20% is 10% below median its 10-year median of 38.15. Over the past 10 years, this metric has ranged from a low of 26.91 to a high of 50.26. The Utilities - Regulated industry median Operating Margin % is 14.97. Guangdong Investment's value of 34.20% is 128.5% above this industry median. Based on the distribution chart, Guangdong Investment ranks #35 out of 499 companies in the Utilities - Regulated industry, which is in the top quartile — a strong position relative to peers. Overall, Guangdong Investment has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Investment's Operating Margin % compare to AWK and WTRG?
According to the Utilities - Regulated industry distribution chart, Guangdong Investment ranks #35 out of 499 companies for Operating Margin %. This places Guangdong Investment in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 14.97. Guangdong Investment's value of 34.20% is 128.5% above this benchmark. Historically, Guangdong Investment's own Operating Margin % has ranged from 26.91 to 50.26 over the past decade. While the company's 10-year median is 38.15 vs. the industry median of 14.97, Guangdong Investment 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. Guangdong Investment's current Operating Margin % of 34.20% is 128.5% 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 Guangdong Investment 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. Guangdong Investment's current Operating Margin % is 34.20%, which is 10% below median its own 10-year median of 38.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Investment stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Investment (STU:GUG) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.62, compared to a current price of €0.86 — trading 39.2% above its estimated fair value. The current Operating Margin % is 34.20%, which is 10% below median its 10-year median of 38.15 and 128.5% above the Utilities - Regulated industry median of 14.97. Guangdong Investment's overall GF Score™ is 39/100 with 7 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 Guangdong Investment (STU:GUG), the current Operating Margin % is 34.20% 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 Guangdong Investment (STU:GUG) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Investment stock appears to be overvalued.
The current stock price of €0.86 is trading 39.2% above its estimated GF Value™ of €0.62.
GuruFocus considers Guangdong Investment to be Significantly Overvalued.
Key valuation signals for STU:GUG:
Operating Margin %: 34.20% (10% below median its 10-year median of 38.15)
GF Value™: €0.62 vs. price of €0.86 (39.2% above fair value)
Industry Position: 128.5% above the Utilities - Regulated median (#35 of 499)
No single metric tells the full story. See the STU:GUG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Investment Ltd is engaged in investment holding. The segments of the company include Water resources, Property investment, Department store operation, Electric power generation, Hotel operation and management, Road and bridge segment, and Others segment. The company derives its revenue from the Water resources segment that engages in water distribution, sewage treatment, and construction of water supply and sewage treatment infrastructure for customers in Mainland China and Hong Kong. Geographically, the company generates almost all of its revenue from the Mainland China.
39GF Score
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