Hunan Mendale Hometextile Co (SZSE:002397) Operating Margin %: 5.90% (As of Jun. 2026) — 39% Above Median

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SZSE:002397 Hunan Mendale Hometextile Co Ltd SZSE:002397
63 GF Score
Price ¥3.55
GF Value ¥3.13
Valuation Modestly Overvalued
! 3 Warning Signs
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What is Hunan Mendale Hometextile Co Operating Margin %?

Hunan Mendale Hometextile Co SZSE:002397 63 Operating Margin % is 5.90% as of Jun. 2026, which is 39% above its 10-year median of 4.25. GuruFocus rates SZSE:002397 with a GF Score™ of 63/100 and a GF Value™ of ¥3.13 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 1,041 Manufacturing - Apparel & Accessories companies, Hunan Mendale Hometextile Co ranks better than 53.89% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hunan Mendale Hometextile Co's Operating Income for the three months ended in Jun. 2026 was ¥24 Mil. Hunan Mendale Hometextile Co's Revenue for the three months ended in Jun. 2026 was ¥402 Mil. Therefore, Hunan Mendale Hometextile Co's Operating Margin % for the quarter that ended in Jun. 2026 was 5.90%.

The historical rank and industry rank for Hunan Mendale Hometextile Co's Operating Margin % or its related term are showing as below:

SZSE:002397' s Operating Margin % Range Over the Past 10 Years
Min: -16.09   Med: 4.25   Max: 8.41
Current: 5.01


SZSE:002397's Operating Margin % is ranked better than
53.89% of 1041 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 4.33 vs SZSE:002397: 5.01

Hunan Mendale Hometextile Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Hunan Mendale Hometextile Co's Operating Income for the three months ended in Jun. 2026 was ¥24 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was ¥90 Mil.


Hunan Mendale Hometextile Co  (SZSE:002397) 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.


Hunan Mendale Hometextile Co Operating Margin % Related Terms


Hunan Mendale Hometextile Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Hunan Mendale Hometextile 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.

Hunan Mendale Hometextile Co Operating Margin % Chart

Hunan Mendale Hometextile 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 0.62 -16.09 3.04 3.69 4.81

Hunan Mendale Hometextile 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 4.76 2.16 6.87 5.15 5.90

Hunan Mendale Hometextile Co Operating Margin % Competitor Comparison

For the Textile Manufacturing subindustry, Hunan Mendale Hometextile 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.


Hunan Mendale Hometextile Co Operating Margin % vs Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Hunan Mendale Hometextile Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Hunan Mendale Hometextile Co's Operating Margin % falls into.


SZSE:002397
63GF Score
Hunan Mendale Hometextile Co Ltd SZSE:002397
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Hunan Mendale Hometextile 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.

Hunan Mendale Hometextile 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 )
=80.763 / 1679.393
=4.81 %

Hunan Mendale Hometextile 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 )
=23.71 / 401.81
=5.90 %

* 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 5.90% mean?
Hunan Mendale Hometextile Co (SZSE:002397) has a Operating Margin % of 5.90% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Hunan Mendale Hometextile Co and its competitors. This is 39% above median its historical median of 4.25. According to the industry distribution chart, Hunan Mendale Hometextile Co ranks #480 out of 1041 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 46.1%.
Is Hunan Mendale Hometextile Co's Operating Margin % too high?
Hunan Mendale Hometextile Co's current Operating Margin % of 5.90% is 39% above median its 10-year median of 4.25. The Manufacturing - Apparel & Accessories industry median Operating Margin % is 4.33. Hunan Mendale Hometextile Co's value of 5.90% is 36.3% above this industry median. Based on the distribution chart, Hunan Mendale Hometextile Co ranks #480 out of 1041 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Hunan Mendale Hometextile Co has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Hunan Mendale Hometextile Co's Operating Margin % compare to competitors?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Hunan Mendale Hometextile Co ranks #480 out of 1041 companies for Operating Margin %. This puts Hunan Mendale Hometextile Co in the upper half of its industry. The industry median Operating Margin % is 4.33. Hunan Mendale Hometextile Co's value of 5.90% is 36.3% above this benchmark. While the company's 10-year median is 4.25 vs. the industry median of 4.33, Hunan Mendale Hometextile 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 Manufacturing - Apparel & Accessories company?
The median Operating Margin % among Manufacturing - Apparel & Accessories companies is 4.33, based on 1,041 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. Hunan Mendale Hometextile Co's current Operating Margin % of 5.90% is 36.3% 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 Hunan Mendale Hometextile Co and its competitors. For the Manufacturing - Apparel & Accessories industry, the median Operating Margin % is 4.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hunan Mendale Hometextile Co's current Operating Margin % is 5.90%, which is 39% above median its own 10-year median of 4.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hunan Mendale Hometextile Co stock overvalued right now?
Based on GuruFocus' analysis, Hunan Mendale Hometextile Co (SZSE:002397) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥3.13, compared to a current price of ¥3.55 — trading 13.4% above its estimated fair value. The current Operating Margin % is 5.90%, which is 39% above median its 10-year median of 4.25 and 36.3% above the Manufacturing - Apparel & Accessories industry median of 4.33. Hunan Mendale Hometextile Co's overall GF Score™ is 63/100 with 3 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 Hunan Mendale Hometextile Co (SZSE:002397), the current Operating Margin % is 5.90% 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 Hunan Mendale Hometextile Co (SZSE:002397) Overvalued in 2026?

Based on GuruFocus' analysis, Hunan Mendale Hometextile Co stock appears to be overvalued. The current stock price of ¥3.55 is trading 13.4% above its estimated GF Value™ of ¥3.13. GuruFocus considers Hunan Mendale Hometextile Co to be Modestly Overvalued.

Key valuation signals for SZSE:002397:

  • Operating Margin %: 5.90% (39% above median its 10-year median of 4.25)
  • GF Value™: ¥3.13 vs. price of ¥3.55 (13.4% above fair value)
  • GF Score™: 63/100 with 3 warning signs
  • Industry Position: 36.3% above the Manufacturing - Apparel & Accessories median (#480 of 1041)

No single metric tells the full story. See the SZSE:002397 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hunan Mendale Hometextile Co Business Description

Address No. 2 Changchuan Road, Lugu Industrial Base, New and High-Tech Industrial Development Zone, Changsha, Hunan, CHN, 410205
Hunan Mendale Hometextile Co Ltd is a China-based company. It is principally engaged in the design, manufacture, and sales of home textile products, as well as the provision of home life services.
63GF Score

Get the complete analysis for SZSE:002397

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

¥3.55
Price
¥3.13
GF Value