Towngas Smart Energy CoTGASF -15.69%52 Operating Margin % is 6.02% as of Dec. 2025, which is 54% below its 10-year median of 13.02. GuruFocus rates TGASF with a GF Score™ of 52/100 and a GF Value™ of $0.42 (Fairly Valued). The stock has 6 warning signs investors should review. Among 499 Utilities - Regulated companies, Towngas Smart Energy Co ranks worse than 73.95% on this metric.
Towngas Smart Energy Co (OTCPK:TGASF) 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.
Towngas Smart Energy Co Operating Margin % Related Terms
Towngas Smart Energy Co Operating Margin % Historical Data
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The historical data trend for Towngas Smart Energy 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.
For the Utilities - Regulated Gas subindustry, Towngas Smart Energy 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.
Towngas Smart Energy Co Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, Towngas Smart Energy Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Towngas Smart Energy Co's Operating Margin % falls into.
Towngas Smart Energy 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.
Towngas Smart Energy 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.
Towngas Smart Energy Co (TGASF) has a Operating Margin % of 6.02% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Towngas Smart Energy Co and its competitors. This is 54% below median its historical median of 13.02. Over the past decade, Towngas Smart Energy Co's Operating Margin % has ranged from 6.89 to 14.72. According to the industry distribution chart, Towngas Smart Energy Co ranks #369 out of 499 companies in the Utilities - Regulated industry, placing it in the top 73.9%.
Is Towngas Smart Energy Co's Operating Margin % too high?
Towngas Smart Energy Co's current Operating Margin % of 6.02% is 54% below median its 10-year median of 13.02. Over the past 10 years, this metric has ranged from a low of 6.89 to a high of 14.72. The Utilities - Regulated industry median Operating Margin % is 14.97. Towngas Smart Energy Co's value of 6.02% is 59.8% below this industry median. Based on the distribution chart, Towngas Smart Energy Co ranks #369 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, Towngas Smart Energy Co has a GF Score™ of 52/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Towngas Smart Energy Co's Operating Margin % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, Towngas Smart Energy Co ranks #369 out of 499 companies for Operating Margin %. This places Towngas Smart Energy Co in the lower half of its industry. The industry median Operating Margin % is 14.97. Towngas Smart Energy Co's value of 6.02% is 59.8% below this benchmark. Historically, Towngas Smart Energy Co's own Operating Margin % has ranged from 6.89 to 14.72 over the past decade. While the company's 10-year median is 13.02 vs. the industry median of 14.97, Towngas Smart Energy Co 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 an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 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. Towngas Smart Energy Co's current Operating Margin % of 6.02% is 59.8% 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 Towngas Smart Energy Co and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Towngas Smart Energy Co's current Operating Margin % is 6.02%, which is 54% below median its own 10-year median of 13.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Towngas Smart Energy Co stock overvalued right now?
Based on GuruFocus' analysis, Towngas Smart Energy Co (TGASF) is currently considered Fairly Valued. The stock's GF Value™ is $0.42, compared to a current price of $0.43 — trading 2.1% above its estimated fair value. The current Operating Margin % is 6.02%, which is 54% below median its 10-year median of 13.02 and 59.8% below the Utilities - Regulated industry median of 14.97. Towngas Smart Energy Co's overall GF Score™ is 52/100 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 Towngas Smart Energy Co (TGASF), the current Operating Margin % is 6.02% as of Dec. 2025. 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 Towngas Smart Energy Co (TGASF) Overvalued in 2026?
Based on GuruFocus' analysis, Towngas Smart Energy Co stock appears to be overvalued.
The current stock price of $0.43 is trading 2.1% above its estimated GF Value™ of $0.42.
GuruFocus considers Towngas Smart Energy Co to be Fairly Valued.
Key valuation signals for TGASF:
Operating Margin %: 6.02% (54% below median its 10-year median of 13.02)
GF Value™: $0.42 vs. price of $0.43 (2.1% above fair value)
Industry Position: 59.8% below the Utilities - Regulated median (#369 of 499)
No single metric tells the full story. See the TGASF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Towngas Smart Energy Co Ltd is an investment holding company engaged in the sales of piped gas, renewable energy, and other types of energy, the construction of gas pipelines, the sale of gas appliances and related products, and other value-added services in the People's Republic of China. The operating segment of the company are Gas business and Renewable energy business. The Renewable energy business is engaged in Sales of renewable energy (mainly photovoltaic power) and other related energy and services and the Gas business is further categorized in Sales of piped gas, Gas connection, Gas-related products and services. The company derives maximum revenue from the Sales of piped gas and other gas-related energy. All of the Group' s revenue is generated in the PRC.
52GF Score
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