CQ Pharmaceutical Holding Co (SZSE:000950) Operating Margin %: 1.42% (As of Jun. 2026) — 58% Below Median

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SZSE:000950 CQ Pharmaceutical Holding Co Ltd SZSE:000950
77 GF Score
Price ¥5.17
GF Value ¥5.68
Valuation Fairly Valued
! 8 Warning Signs
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What is CQ Pharmaceutical Holding Co Operating Margin %?

CQ Pharmaceutical Holding Co SZSE:000950 77 Operating Margin % is 1.42% as of Jun. 2026, which is 58% below its 10-year median of 3.41. GuruFocus rates SZSE:000950 with a GF Score™ of 77/100 and a GF Value™ of ¥5.68 (Fairly Valued). The stock has 8 warning signs investors should review. Among 123 Medical Distribution companies, CQ Pharmaceutical Holding Co ranks worse than 60.98% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. CQ Pharmaceutical Holding Co's Operating Income for the three months ended in Jun. 2026 was ¥279 Mil. CQ Pharmaceutical Holding Co's Revenue for the three months ended in Jun. 2026 was ¥19,699 Mil. Therefore, CQ Pharmaceutical Holding Co's Operating Margin % for the quarter that ended in Jun. 2026 was 1.42%.

Warning Sign:

CQ Pharmaceutical Holding Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -12.8%.

The historical rank and industry rank for CQ Pharmaceutical Holding Co's Operating Margin % or its related term are showing as below:

SZSE:000950' s Operating Margin % Range Over the Past 10 Years
Min: 0.76   Med: 3.41   Max: 4.21
Current: 2.09


SZSE:000950's Operating Margin % is ranked worse than
60.98% of 123 companies
in the Medical Distribution industry
Industry Median: 3.16 vs SZSE:000950: 2.09

CQ Pharmaceutical Holding Co's 5-Year Average Operating Margin % Growth Rate was -12.80% per year.

CQ Pharmaceutical Holding Co's Operating Income for the three months ended in Jun. 2026 was ¥279 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was ¥1,702 Mil.


CQ Pharmaceutical Holding Co  (SZSE:000950) 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 Nokia’s 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.


CQ Pharmaceutical Holding Co Operating Margin % Related Terms


CQ Pharmaceutical Holding Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for CQ Pharmaceutical Holding 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.

CQ Pharmaceutical Holding Co Operating Margin % Chart

CQ Pharmaceutical Holding Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3.50 3.25 2.43 1.53 1.22

CQ Pharmaceutical Holding Co Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.17 1.36 -0.45 1.45 1.42

SZSE:000950 vs MCK, COR, CAH: Operating Margin % Comparison

For the Medical Distribution subindustry, CQ Pharmaceutical Holding 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.


CQ Pharmaceutical Holding Co Operating Margin % vs Medical Distribution Industry

For the Medical Distribution industry and Healthcare sector, CQ Pharmaceutical Holding Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where CQ Pharmaceutical Holding Co's Operating Margin % falls into.


SZSE:000950
77GF Score
CQ Pharmaceutical Holding Co Ltd SZSE:000950
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

CQ Pharmaceutical Holding 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.

CQ Pharmaceutical Holding Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=1002.08604421 / 82332.73967988
=1.22 %

CQ Pharmaceutical Holding Co's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=279.24179427 / 19699.27975061
=1.42 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 1.42% mean?
CQ Pharmaceutical Holding Co (SZSE:000950) has a Operating Margin % of 1.42% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on CQ Pharmaceutical Holding Co and its competitors. This is 58% below median its historical median of 3.41. Over the past decade, CQ Pharmaceutical Holding Co's Operating Margin % has ranged from 0.76 to 4.21. According to the industry distribution chart, CQ Pharmaceutical Holding Co ranks #75 out of 123 companies in the Medical Distribution industry, placing it in the top 61%.
Is CQ Pharmaceutical Holding Co's Operating Margin % too high?
CQ Pharmaceutical Holding Co's current Operating Margin % of 1.42% is 58% below median its 10-year median of 3.41. Over the past 10 years, this metric has ranged from a low of 0.76 to a high of 4.21. The Medical Distribution industry median Operating Margin % is 3.16. CQ Pharmaceutical Holding Co's value of 1.42% is 55.1% below this industry median. Based on the distribution chart, CQ Pharmaceutical Holding Co ranks #75 out of 123 companies in the Medical Distribution industry, which is below the industry midpoint. Overall, CQ Pharmaceutical Holding Co has a GF Score™ of 77/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does CQ Pharmaceutical Holding Co's Operating Margin % compare to MCK and COR?
According to the Medical Distribution industry distribution chart, CQ Pharmaceutical Holding Co ranks #75 out of 123 companies for Operating Margin %. This places CQ Pharmaceutical Holding Co in the lower half of its industry. The industry median Operating Margin % is 3.16. CQ Pharmaceutical Holding Co's value of 1.42% is 55.1% below this benchmark. Historically, CQ Pharmaceutical Holding Co's own Operating Margin % has ranged from 0.76 to 4.21 over the past decade. While the company's 10-year median is 3.41 vs. the industry median of 3.16, CQ Pharmaceutical Holding Co 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 Medical Distribution company?
The median Operating Margin % among Medical Distribution companies is 3.16, based on 123 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. CQ Pharmaceutical Holding Co's current Operating Margin % of 1.42% is 55.1% 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 CQ Pharmaceutical Holding Co and its competitors. For the Medical Distribution industry, the median Operating Margin % is 3.16 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. CQ Pharmaceutical Holding Co's current Operating Margin % is 1.42%, which is 58% below median its own 10-year median of 3.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is CQ Pharmaceutical Holding Co stock overvalued right now?
Based on GuruFocus' analysis, CQ Pharmaceutical Holding Co (SZSE:000950) is currently considered Fairly Valued. The stock's GF Value™ is ¥5.68, compared to a current price of ¥5.17 — trading 9% below its estimated fair value. The current Operating Margin % is 1.42%, which is 58% below median its 10-year median of 3.41 and 55.1% below the Medical Distribution industry median of 3.16. CQ Pharmaceutical Holding Co's overall GF Score™ is 77/100 with 8 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 CQ Pharmaceutical Holding Co (SZSE:000950), the current Operating Margin % is 1.42% 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 CQ Pharmaceutical Holding Co (SZSE:000950) Overvalued in 2026?

Based on GuruFocus' analysis, CQ Pharmaceutical Holding Co stock appears to be undervalued. The current stock price of ¥5.17 is trading 9% below its estimated GF Value™ of ¥5.68. GuruFocus considers CQ Pharmaceutical Holding Co to be Fairly Valued.

Key valuation signals for SZSE:000950:

  • Operating Margin %: 1.42% (58% below median its 10-year median of 3.41)
  • GF Value™: ¥5.68 vs. price of ¥5.17 (9% below fair value)
  • GF Score™: 77/100 with 8 warning signs
  • Industry Position: 55.1% below the Medical Distribution median (#75 of 123)

No single metric tells the full story. See the SZSE:000950 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


CQ Pharmaceutical Holding Co Business Description

Address 333 Jinshi Avenue, Yubei District, Chongqing, CHN, 400010
CQ Pharmaceutical Holding Co Ltd distributes pharmaceutical products. It is the fixed-point reserve unit for drug and medical equipment of the central and Chongqing industries. The pharmaceutical business sector covers hospitals, pharmaceuticals, healthcare products, hospital sales, commercial wholesale, retail chains, terminal distribution, warehousing logistics and supply chain value-added services. Geographically, the group operates through China.
77GF Score

Get the complete analysis for SZSE:000950

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

¥5.17
Price
¥5.68
GF Value