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Renhe Pharmacy CoSZSE:000650 -1.29%83 Operating Margin % is 19.57% as of Jun. 2026, which is 6% above its 10-year median of 18.51. GuruFocus rates SZSE:000650 with a GF Score™ of 83/100 and a GF Value™ of ¥5.07 (Fairly Valued). The stock has 1 warning sign investors should review. Among 959 Drug Manufacturers companies, Renhe Pharmacy Co ranks better than 79.87% on this metric.
Renhe Pharmacy Co Ltd operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Renhe Pharmacy Co's Operating Margin % or its related term are showing as below:
SZSE:000650'
s Operating Margin % Range Over the Past 10 Years
Min: 14.03 Med: 18.51 Max: 20.37
Current: 19.24
SZSE:000650's Operating Margin % is ranked better than 79.87% of 959
companies
in the Drug Manufacturers industry
Industry Median: 7.31
vs SZSE:000650: 19.24
Renhe Pharmacy Co's 5-Year Average Operating Margin % Growth Rate was 1.80% per year.
Renhe Pharmacy Co (SZSE:000650) 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.
Renhe Pharmacy Co Operating Margin % Related Terms
Renhe Pharmacy Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Renhe Pharmacy 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Renhe Pharmacy 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.
Renhe Pharmacy Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Renhe Pharmacy Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Renhe Pharmacy 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.
Renhe Pharmacy 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.
Renhe Pharmacy Co (SZSE:000650) has a Operating Margin % of 19.57% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Renhe Pharmacy Co and its competitors. This is near median its historical median of 18.51. Over the past decade, Renhe Pharmacy Co's Operating Margin % has ranged from 14.03 to 20.37. According to the industry distribution chart, Renhe Pharmacy Co ranks #193 out of 959 companies in the Drug Manufacturers industry, placing it in the top 20.1%.
Is Renhe Pharmacy Co's Operating Margin % too high?
Renhe Pharmacy Co's current Operating Margin % of 19.57% is near median its 10-year median of 18.51. Over the past 10 years, this metric has ranged from a low of 14.03 to a high of 20.37. The Drug Manufacturers industry median Operating Margin % is 7.31. Renhe Pharmacy Co's value of 19.57% is 167.7% above this industry median. Based on the distribution chart, Renhe Pharmacy Co ranks #193 out of 959 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Renhe Pharmacy Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Renhe Pharmacy Co's Operating Margin % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Renhe Pharmacy Co ranks #193 out of 959 companies for Operating Margin %. This places Renhe Pharmacy Co in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.31. Renhe Pharmacy Co's value of 19.57% is 167.7% above this benchmark. Historically, Renhe Pharmacy Co's own Operating Margin % has ranged from 14.03 to 20.37 over the past decade. While the company's 10-year median is 18.51 vs. the industry median of 7.31, Renhe Pharmacy 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.31, based on 959 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. Renhe Pharmacy Co's current Operating Margin % of 19.57% is 167.7% 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 Renhe Pharmacy Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renhe Pharmacy Co's current Operating Margin % is 19.57%, which is near median its own 10-year median of 18.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renhe Pharmacy Co stock overvalued right now?
Based on GuruFocus' analysis, Renhe Pharmacy Co (SZSE:000650) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.07, compared to a current price of ¥5.37 — trading 5.9% above its estimated fair value. The current Operating Margin % is 19.57%, which is near median its 10-year median of 18.51 and 167.7% above the Drug Manufacturers industry median of 7.31. Renhe Pharmacy Co's overall GF Score™ is 83/100 with 1 warning sign 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 Renhe Pharmacy Co (SZSE:000650), the current Operating Margin % is 19.57% as of Jun. 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 Renhe Pharmacy Co (SZSE:000650) Overvalued in 2026?
Based on GuruFocus' analysis, Renhe Pharmacy Co stock appears to be overvalued.
The current stock price of ¥5.37 is trading 5.9% above its estimated GF Value™ of ¥5.07.
GuruFocus considers Renhe Pharmacy Co to be Fairly Valued.
Key valuation signals for SZSE:000650:
Operating Margin %: 19.57% (near median its 10-year median of 18.51)
GF Value™: ¥5.07 vs. price of ¥5.37 (5.9% above fair value)
Industry Position: 167.7% above the Drug Manufacturers median (#193 of 959)
No single metric tells the full story. See the SZSE:000650 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renhe Pharmacy Co Ltd is a China-based company engaged in the production and sale of Chinese and Western medicines, raw materials, and health-related products, including oral solid dosage forms, oral liquid dosage forms, large-volume injections, small-volume injections, external washes, liniments, suppositories, ointments, and other dosage forms of pharmaceuticals and health-related products. The company's main products include: Renhe Kelike, Youkadan series, Fuyanjie series, Da Huo Luo capsules, Shanliang eye drops, Qinghuo capsules, and Zhengwei capsules.
83GF Score
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