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Guangdong Rifeng Electric Cable Co (SZSE:002953) 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.
Guangdong Rifeng Electric Cable Co Operating Margin % Related Terms
Guangdong Rifeng Electric Cable 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.
Guangdong Rifeng Electric Cable Co Operating Margin % Chart
SZSE:002953 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, Guangdong Rifeng Electric Cable 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.
Guangdong Rifeng Electric Cable Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Guangdong Rifeng Electric Cable Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Guangdong Rifeng Electric Cable Co's Operating Margin % falls into.
Guangdong Rifeng Electric Cable 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.
* 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 Rifeng Electric Cable Co (SZSE:002953) has a Operating Margin % of 4.35% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Guangdong Rifeng Electric Cable Co and its competitors. This is 34% below median its historical median of 6.59. Over the past decade, Guangdong Rifeng Electric Cable Co's Operating Margin % has ranged from 3.91 to 9.83. According to the industry distribution chart, Guangdong Rifeng Electric Cable Co ranks #1173 out of 2479 companies in the Hardware industry, placing it in the top 47.3%.
Is Guangdong Rifeng Electric Cable Co's Operating Margin % too high?
Guangdong Rifeng Electric Cable Co's current Operating Margin % of 4.35% is 34% below median its 10-year median of 6.59. Over the past 10 years, this metric has ranged from a low of 3.91 to a high of 9.83. The Hardware industry median Operating Margin % is 3.80. Guangdong Rifeng Electric Cable Co's value of 4.35% is 14.5% above this industry median. Based on the distribution chart, Guangdong Rifeng Electric Cable Co ranks #1173 out of 2479 companies in the Hardware industry, which is above the industry midpoint. Overall, Guangdong Rifeng Electric Cable Co has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Guangdong Rifeng Electric Cable Co's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Guangdong Rifeng Electric Cable Co ranks #1173 out of 2479 companies for Operating Margin %. This puts Guangdong Rifeng Electric Cable Co in the upper half of its industry. The industry median Operating Margin % is 3.80. Guangdong Rifeng Electric Cable Co's value of 4.35% is 14.5% above this benchmark. Historically, Guangdong Rifeng Electric Cable Co's own Operating Margin % has ranged from 3.91 to 9.83 over the past decade. While the company's 10-year median is 6.59 vs. the industry median of 3.80, Guangdong Rifeng Electric Cable 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 3.80, based on 2,479 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 Rifeng Electric Cable Co's current Operating Margin % of 4.35% is 14.5% 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 Rifeng Electric Cable Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Guangdong Rifeng Electric Cable Co's current Operating Margin % is 4.35%, which is 34% below median its own 10-year median of 6.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Guangdong Rifeng Electric Cable Co stock overvalued right now?
Based on GuruFocus' analysis, Guangdong Rifeng Electric Cable Co (SZSE:002953) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥11.26, compared to a current price of ¥8.70 — trading 22.7% below its estimated fair value. The current Operating Margin % is 4.35%, which is 34% below median its 10-year median of 6.59 and 14.5% above the Hardware industry median of 3.80. Guangdong Rifeng Electric Cable Co's overall GF Score™ is 82/100 with 6 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 Rifeng Electric Cable Co (SZSE:002953), the current Operating Margin % is 4.35% 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 Guangdong Rifeng Electric Cable Co (SZSE:002953) Overvalued in 2026?
Based on GuruFocus' analysis, Guangdong Rifeng Electric Cable Co stock appears to be undervalued.
The current stock price of ¥8.70 is trading 22.7% below its estimated GF Value™ of ¥11.26.
GuruFocus considers Guangdong Rifeng Electric Cable Co to be Modestly Undervalued.
Key valuation signals for SZSE:002953:
Operating Margin %: 4.35% (34% below median its 10-year median of 6.59)
GF Value™: ¥11.26 vs. price of ¥8.70 (22.7% below fair value)
Industry Position: 14.5% above the Hardware median (#1173 of 2479)
No single metric tells the full story. See the SZSE:002953 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Guangdong Rifeng Electric Cable Co Business Description
Guangdong Rifeng Electric Cable Co Ltd is a wire and cable manufacturer. It produces all types of cables, including household wires, power cables, rubber cables, control cables, heavy mechanical cables, instrument cables, communication cables, marine cables, connecting cables and power cords. Products are widely used in household appliances, power engineering, petrochemical, metallurgy, construction machinery, communications engineering, wind power, environmental engineering, dam embankment engineering, instrumentation, computer communication control and other fields.
82GF Score
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