Tsingtao Brewery CoTSGTY 86 Operating Margin % is 22.19% as of Mar. 2026, which is 104% above its 10-year median of 10.90. GuruFocus rates TSGTY with a GF Score™ of 86/100 and a GF Value™ of $41.11 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 210 Beverages - Alcoholic companies, Tsingtao Brewery Co ranks better than 80% on this metric.
Tsingtao Brewery Co (OTCPK:TSGTY) 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.
Tsingtao Brewery Co Operating Margin % Related Terms
Tsingtao Brewery Co Operating Margin % Historical Data
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The historical data trend for Tsingtao Brewery 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 Beverages - Brewers subindustry, Tsingtao Brewery 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.
Tsingtao Brewery Co Operating Margin % vs Beverages - Alcoholic Industry
For the Beverages - Alcoholic industry and Consumer Defensive sector, Tsingtao Brewery Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tsingtao Brewery Co's Operating Margin % falls into.
Tsingtao Brewery 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.
Tsingtao Brewery 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.
Tsingtao Brewery Co (TSGTY) has a Operating Margin % of 22.19% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tsingtao Brewery Co and its competitors. This is 104% above median its historical median of 10.90. Over the past decade, Tsingtao Brewery Co's Operating Margin % has ranged from 4.75 to 17.59. According to the industry distribution chart, Tsingtao Brewery Co ranks #42 out of 210 companies in the Beverages - Alcoholic industry, placing it in the top 20%.
Is Tsingtao Brewery Co's Operating Margin % too high?
Tsingtao Brewery Co's current Operating Margin % of 22.19% is 104% above median its 10-year median of 10.90. Over the past 10 years, this metric has ranged from a low of 4.75 to a high of 17.59. The Beverages - Alcoholic industry median Operating Margin % is 7.92. Tsingtao Brewery Co's value of 22.19% is 180.4% above this industry median. Based on the distribution chart, Tsingtao Brewery Co ranks #42 out of 210 companies in the Beverages - Alcoholic industry, which is in the top quartile — a strong position relative to peers. Overall, Tsingtao Brewery Co has a GF Score™ of 86/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tsingtao Brewery Co's Operating Margin % compare to STZ?
According to the Beverages - Alcoholic industry distribution chart, Tsingtao Brewery Co ranks #42 out of 210 companies for Operating Margin %. This places Tsingtao Brewery Co in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.92. Tsingtao Brewery Co's value of 22.19% is 180.4% above this benchmark. Historically, Tsingtao Brewery Co's own Operating Margin % has ranged from 4.75 to 17.59 over the past decade. While the company's 10-year median is 10.90 vs. the industry median of 7.92, Tsingtao Brewery 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 Beverages - Alcoholic company?
The median Operating Margin % among Beverages - Alcoholic companies is 7.92, based on 210 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. Tsingtao Brewery Co's current Operating Margin % of 22.19% is 180.4% 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 Tsingtao Brewery Co and its competitors. For the Beverages - Alcoholic industry, the median Operating Margin % is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tsingtao Brewery Co's current Operating Margin % is 22.19%, which is 104% above median its own 10-year median of 10.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tsingtao Brewery Co stock overvalued right now?
Based on GuruFocus' analysis, Tsingtao Brewery Co (TSGTY) is currently considered Modestly Undervalued. The stock's GF Value™ is $41.11, compared to a current price of $30.35 — trading 26.2% below its estimated fair value. The current Operating Margin % is 22.19%, which is 104% above median its 10-year median of 10.90 and 180.4% above the Beverages - Alcoholic industry median of 7.92. Tsingtao Brewery Co's overall GF Score™ is 86/100 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 Tsingtao Brewery Co (TSGTY), the current Operating Margin % is 22.19% 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 Tsingtao Brewery Co (TSGTY) Overvalued in 2026?
Based on GuruFocus' analysis, Tsingtao Brewery Co stock appears to be undervalued.
The current stock price of $30.35 is trading 26.2% below its estimated GF Value™ of $41.11.
GuruFocus considers Tsingtao Brewery Co to be Modestly Undervalued.
Key valuation signals for TSGTY:
Operating Margin %: 22.19% (104% above median its 10-year median of 10.90)
GF Value™: $41.11 vs. price of $30.35 (26.2% below fair value)
Industry Position: 180.4% above the Beverages - Alcoholic median (#42 of 210)
No single metric tells the full story. See the TSGTY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
With over 100 years of history, Tsingtao Brewery has become one of the leading brewers in China with its core Tsingtao brand. The company commands a dominant position in its core market, Shandong province, which contributed close to 60% of its revenue and net profit in 2024. Unlike other major brewers, Tsingtao Brewery's brand umbrellas consist entirely of domestic brands. The Tsingtao brand has a mid-range to high-end market positioning and contributed over half of its volume whereas the mass market Laoshan brand targets the mainstream segment, with a declining volume mix as the company sought to premiumize its portfolio.
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