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Changzhou Xiangming Intelligent Drive System (SZSE:301226) 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.
Changzhou Xiangming Intelligent Drive System Operating Margin % Related Terms
Changzhou Xiangming Intelligent Drive System 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.
Changzhou Xiangming Intelligent Drive System Operating Margin % Chart
Changzhou Xiangming Intelligent Drive System Annual Data
SZSE:301226 vs APH, GLW, TEL: Operating Margin % Comparison
For the Electronic Components subindustry, Changzhou Xiangming Intelligent Drive System'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.
Changzhou Xiangming Intelligent Drive System Operating Margin % vs Hardware Industry
Changzhou Xiangming Intelligent Drive System 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.
Changzhou Xiangming Intelligent Drive System (SZSE:301226) has a Operating Margin % of 1.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Changzhou Xiangming Intelligent Drive System and its competitors. This is 88% below median its historical median of 9.66. Over the past decade, Changzhou Xiangming Intelligent Drive System's Operating Margin % has ranged from 2.55 to 12.99. According to the industry distribution chart, Changzhou Xiangming Intelligent Drive System ranks #1416 out of 2474 companies in the Hardware industry, placing it in the top 57.2%.
Is Changzhou Xiangming Intelligent Drive System's Operating Margin % too high?
Changzhou Xiangming Intelligent Drive System's current Operating Margin % of 1.15% is 88% below median its 10-year median of 9.66. Over the past 10 years, this metric has ranged from a low of 2.55 to a high of 12.99. The Hardware industry median Operating Margin % is 3.88. Changzhou Xiangming Intelligent Drive System's value of 1.15% is 70.4% below this industry median. Based on the distribution chart, Changzhou Xiangming Intelligent Drive System ranks #1416 out of 2474 companies in the Hardware industry, which is below the industry midpoint. Overall, Changzhou Xiangming Intelligent Drive System has a GF Score™ of 74/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Changzhou Xiangming Intelligent Drive System's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Changzhou Xiangming Intelligent Drive System ranks #1416 out of 2474 companies for Operating Margin %. This places Changzhou Xiangming Intelligent Drive System in the lower half of its industry. The industry median Operating Margin % is 3.88. Changzhou Xiangming Intelligent Drive System's value of 1.15% is 70.4% below this benchmark. Historically, Changzhou Xiangming Intelligent Drive System's own Operating Margin % has ranged from 2.55 to 12.99 over the past decade. While the company's 10-year median is 9.66 vs. the industry median of 3.88, Changzhou Xiangming Intelligent Drive System 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 Hardware company?
The median Operating Margin % among Hardware companies is 3.88, based on 2,474 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. Changzhou Xiangming Intelligent Drive System's current Operating Margin % of 1.15% is 70.4% 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 Changzhou Xiangming Intelligent Drive System 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. Changzhou Xiangming Intelligent Drive System's current Operating Margin % is 1.15%, which is 88% below median its own 10-year median of 9.66. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Changzhou Xiangming Intelligent Drive System stock overvalued right now?
Based on GuruFocus' analysis, Changzhou Xiangming Intelligent Drive System (SZSE:301226) is currently considered Modestly Overvalued. The stock's GF Value™ is ¥23.12, compared to a current price of ¥27.56 — trading 19.2% above its estimated fair value. The current Operating Margin % is 1.15%, which is 88% below median its 10-year median of 9.66 and 70.4% below the Hardware industry median of 3.88. Changzhou Xiangming Intelligent Drive System's overall GF Score™ is 74/100 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 Changzhou Xiangming Intelligent Drive System (SZSE:301226), the current Operating Margin % is 1.15% 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 Changzhou Xiangming Intelligent Drive System (SZSE:301226) Overvalued in 2026?
Based on GuruFocus' analysis, Changzhou Xiangming Intelligent Drive System stock appears to be overvalued.
The current stock price of ¥27.56 is trading 19.2% above its estimated GF Value™ of ¥23.12.
GuruFocus considers Changzhou Xiangming Intelligent Drive System to be Modestly Overvalued.
Key valuation signals for SZSE:301226:
Operating Margin %: 1.15% (88% below median its 10-year median of 9.66)
GF Value™: ¥23.12 vs. price of ¥27.56 (19.2% above fair value)
Industry Position: 70.4% below the Hardware median (#1416 of 2474)
No single metric tells the full story. See the SZSE:301226 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Changzhou Xiangming Intelligent Drive System Corp is engaged in the Research and development, production and sales of micro motors, fans and intelligent components.
74GF 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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