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Zhongfu Information (SZSE:300659) 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.
Zhongfu Information Operating Margin % Related Terms
Zhongfu Information Operating Margin % Historical Data
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The historical data trend for Zhongfu Information'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.
SZSE:300659 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, Zhongfu Information'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.
Zhongfu Information Operating Margin % vs Software Industry
For the Software industry and Technology sector, Zhongfu Information's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zhongfu Information's Operating Margin % falls into.
Zhongfu Information 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.
Zhongfu Information'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.
Zhongfu Information (SZSE:300659) has a Operating Margin % of -142.30% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Zhongfu Information and its competitors. According to the industry distribution chart, Zhongfu Information ranks #2105 out of 2826 companies in the Software industry, placing it in the top 74.5%.
Is Zhongfu Information's Operating Margin % too high?
Zhongfu Information's current Operating Margin % is -142.30%. Based on the distribution chart, Zhongfu Information ranks #2105 out of 2826 companies in the Software industry, which is below the industry midpoint. Overall, Zhongfu Information has a GF Score™ of 62/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Zhongfu Information's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, Zhongfu Information ranks #2105 out of 2826 companies for Operating Margin %. This places Zhongfu Information in the lower half of its industry. The industry median Operating Margin % is 3.90. 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 Software company?
The median Operating Margin % among Software companies is 3.90, based on 2,826 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. 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 Zhongfu Information and its competitors. For the Software industry, the median Operating Margin % is 3.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongfu Information's current Operating Margin % is -142.30%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongfu Information stock overvalued right now?
Based on GuruFocus' analysis, Zhongfu Information (SZSE:300659) is currently considered Possible Value Trap. The stock's GF Value™ is ¥13.01, compared to a current price of ¥8.92 — trading 31.4% below its estimated fair value. The current Operating Margin % is -142.30%. Zhongfu Information's overall GF Score™ is 62/100 with 2 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 Zhongfu Information (SZSE:300659), the current Operating Margin % is -142.30% 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 Zhongfu Information (SZSE:300659) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongfu Information stock appears to be undervalued.
The current stock price of ¥8.92 is trading 31.4% below its estimated GF Value™ of ¥13.01.
GuruFocus considers Zhongfu Information to be Possible Value Trap.
Key valuation signals for SZSE:300659:
Operating Margin %: -142.30%
GF Value™: ¥13.01 vs. price of ¥8.92 (31.4% below fair value)
No single metric tells the full story. See the SZSE:300659 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongfu Information Inc is a provider of network and information security solutions. It specializes in information security technology and product development, sales and providing industry solutions and security services. The company offers security solutions, password application solutions and public safety solutions. Security solutions include information security and confidentiality management, network information one-way data transmission, and integrated business information management solutions. Password application solution comprises electronic business license and mobile billing. Public safety solutions consist of the public opinion warning application, visual intelligence analysis, and public security synthetic combat platform.
62GF Score
Get the complete analysis for SZSE:300659
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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