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China General Plastics Corp had lost money in 67% of the time over the past 12quarters.
China General Plastics (TPE:1305) 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.
China General Plastics Operating Margin % Related Terms
China General Plastics Operating Margin % Historical Data
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The historical data trend for China General Plastics'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.
TPE:1305 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, China General Plastics'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.
China General Plastics Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, China General Plastics's Operating Margin % distribution charts can be found below:
* The bar in red indicates where China General Plastics's Operating Margin % falls into.
China General Plastics 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.
China General Plastics'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.
China General Plastics (TPE:1305) has a Operating Margin % of -10.28% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on China General Plastics and its competitors. According to the industry distribution chart, China General Plastics ranks #1443 out of 1577 companies in the Chemicals industry, placing it in the top 91.5%.
Is China General Plastics' Operating Margin % too high?
China General Plastics' current Operating Margin % is -10.28%. Based on the distribution chart, China General Plastics ranks #1443 out of 1577 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, China General Plastics has a GF Score™ of 57/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China General Plastics' Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, China General Plastics ranks #1443 out of 1577 companies for Operating Margin %. This places China General Plastics in the lower half of its industry. The industry median Operating Margin % is 6.03. 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,577 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 China General Plastics and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China General Plastics's current Operating Margin % is -10.28%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China General Plastics stock overvalued right now?
Based on GuruFocus' analysis, China General Plastics (TPE:1305) is currently considered Fairly Valued. The stock's GF Value™ is NT$13.93, compared to a current price of NT$12.95 — trading 7% below its estimated fair value. The current Operating Margin % is -10.28%. China General Plastics' overall GF Score™ is 57/100 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 China General Plastics (TPE:1305), the current Operating Margin % is -10.28% 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 China General Plastics (TPE:1305) Overvalued in 2026?
Based on GuruFocus' analysis, China General Plastics stock appears to be undervalued.
The current stock price of NT$12.95 is trading 7% below its estimated GF Value™ of NT$13.93.
GuruFocus considers China General Plastics to be Fairly Valued.
Key valuation signals for TPE:1305:
Operating Margin %: -10.28%
GF Value™: NT$13.93 vs. price of NT$12.95 (7% below fair value)
No single metric tells the full story. See the TPE:1305 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China General Plastics Corp engages in the production and sale of PVC films, PVC leather, PVC pipes, PVC compounds, PVC resins, construction products, chlor-alkali products and other related products. Its products include Alkali and chlorine products, PVC plastic powder, Plastic pipe products, Plastic pipe fittings, Waterproof membrane, Anti-corrosion film, Partition panels/door panels, Soft plastic sheet, rigid plastic sheet, PVC printed fabric, PVC laminated fabric, Plastic leather/latex leather, Coral fleece, Shumeirong, Car leather, and Anti-fouling leather. Its segments include VCM products and PVC products of which PVC products derive the majority of revenue.
57GF 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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