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Shanghai Smart Control CoSZSE:001266 +0.99%79 Operating Margin % is 10.83% as of Mar. 2026, which is 54% below its 10-year median of 23.41. GuruFocus rates SZSE:001266 with a GF Score™ of 79/100 and a GF Value™ of ¥39.15 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 2,475 Hardware companies, Shanghai Smart Control Co ranks better than 63.11% on this metric.
Shanghai Smart Control Co (SZSE:001266) 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.
Shanghai Smart Control Co Operating Margin % Related Terms
Shanghai Smart Control Co 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.
Shanghai Smart Control Co Operating Margin % Chart
SZSE:001266 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Shanghai Smart Control 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.
Shanghai Smart Control Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Shanghai Smart Control Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Shanghai Smart Control Co's Operating Margin % falls into.
Shanghai Smart Control 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.
Shanghai Smart Control 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.
Shanghai Smart Control Co (SZSE:001266) has a Operating Margin % of 10.83% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Shanghai Smart Control Co and its competitors. This is 54% below median its historical median of 23.41. According to the industry distribution chart, Shanghai Smart Control Co ranks #913 out of 2475 companies in the Hardware industry, placing it in the top 36.9%.
Is Shanghai Smart Control Co's Operating Margin % too high?
Shanghai Smart Control Co's current Operating Margin % of 10.83% is 54% below median its 10-year median of 23.41. The Hardware industry median Operating Margin % is 3.88. Shanghai Smart Control Co's value of 10.83% is 179.1% above this industry median. Based on the distribution chart, Shanghai Smart Control Co ranks #913 out of 2475 companies in the Hardware industry, which is above the industry midpoint. Overall, Shanghai Smart Control Co has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Shanghai Smart Control Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Shanghai Smart Control Co ranks #913 out of 2475 companies for Operating Margin %. This puts Shanghai Smart Control Co in the upper half of its industry. The industry median Operating Margin % is 3.88. Shanghai Smart Control Co's value of 10.83% is 179.1% above this benchmark. While the company's 10-year median is 23.41 vs. the industry median of 3.88, Shanghai Smart Control 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.88, based on 2,475 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. Shanghai Smart Control Co's current Operating Margin % of 10.83% is 179.1% 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 Shanghai Smart Control Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shanghai Smart Control Co's current Operating Margin % is 10.83%, which is 54% below median its own 10-year median of 23.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shanghai Smart Control Co stock overvalued right now?
Based on GuruFocus' analysis, Shanghai Smart Control Co (SZSE:001266) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥39.15, compared to a current price of ¥34.59 — trading 11.6% below its estimated fair value. The current Operating Margin % is 10.83%, which is 54% below median its 10-year median of 23.41 and 179.1% above the Hardware industry median of 3.88. Shanghai Smart Control Co's overall GF Score™ is 79/100 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 Shanghai Smart Control Co (SZSE:001266), the current Operating Margin % is 10.83% as of Mar. 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 Shanghai Smart Control Co (SZSE:001266) Overvalued in 2026?
Based on GuruFocus' analysis, Shanghai Smart Control Co stock appears to be undervalued.
The current stock price of ¥34.59 is trading 11.6% below its estimated GF Value™ of ¥39.15.
GuruFocus considers Shanghai Smart Control Co to be Modestly Undervalued.
Key valuation signals for SZSE:001266:
Operating Margin %: 10.83% (54% below median its 10-year median of 23.41)
GF Value™: ¥39.15 vs. price of ¥34.59 (11.6% below fair value)
Industry Position: 179.1% above the Hardware median (#913 of 2475)
No single metric tells the full story. See the SZSE:001266 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Shanghai Smart Control Co Ltd is engaged in the research and development, production, and sales of intelligent electronic control products and intelligent electronic control assemblies. The company's product portfolio comprises remote controls, sensors, control units, cameras, motor drivers, energy storage equipment, material cleaning robots, and others. Its products and solutions are used in the fields of new energy (wind and solar energy storage vehicle charging conversion), automotive electronics and intelligence, construction machinery, environmental sanitation machinery, port machinery, mining machinery, agricultural machinery, firefighting equipment, specialized vehicles, rail transit, and more.
79GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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