ENN Energy HoldingsXNGSY -0.68%70 Operating Margin % is 7.85% as of Dec. 2025, which is 23% below its 10-year median of 10.23. GuruFocus rates XNGSY with a GF Score™ of 70/100 and a GF Value™ of $35.81 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 499 Utilities - Regulated companies, ENN Energy Holdings ranks worse than 70.94% on this metric.
ENN Energy Holdings (OTCPK:XNGSY) 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.
ENN Energy Holdings Operating Margin % Related Terms
ENN Energy Holdings Operating Margin % Historical Data
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The historical data trend for ENN Energy Holdings'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, ENN Energy Holdings'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.
ENN Energy Holdings Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ENN Energy Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ENN Energy Holdings's Operating Margin % falls into.
ENN Energy Holdings 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.
ENN Energy Holdings'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.
ENN Energy Holdings (XNGSY) has a Operating Margin % of 7.85% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on ENN Energy Holdings and its competitors. This is 23% below median its historical median of 10.23. Over the past decade, ENN Energy Holdings' Operating Margin % has ranged from 7.50 to 14.09. According to the industry distribution chart, ENN Energy Holdings ranks #354 out of 499 companies in the Utilities - Regulated industry, placing it in the top 70.9%.
Is ENN Energy Holdings' Operating Margin % too high?
ENN Energy Holdings' current Operating Margin % of 7.85% is 23% below median its 10-year median of 10.23. Over the past 10 years, this metric has ranged from a low of 7.50 to a high of 14.09. The Utilities - Regulated industry median Operating Margin % is 14.97. ENN Energy Holdings' value of 7.85% is 47.6% below this industry median. Based on the distribution chart, ENN Energy Holdings ranks #354 out of 499 companies in the Utilities - Regulated industry, which is below the industry midpoint. Overall, ENN Energy Holdings has a GF Score™ of 70/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does ENN Energy Holdings' Operating Margin % compare to ATO and NI?
According to the Utilities - Regulated industry distribution chart, ENN Energy Holdings ranks #354 out of 499 companies for Operating Margin %. This places ENN Energy Holdings in the lower half of its industry. The industry median Operating Margin % is 14.97. ENN Energy Holdings' value of 7.85% is 47.6% below this benchmark. Historically, ENN Energy Holdings' own Operating Margin % has ranged from 7.50 to 14.09 over the past decade. While the company's 10-year median is 10.23 vs. the industry median of 14.97, ENN Energy Holdings 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. ENN Energy Holdings's current Operating Margin % of 7.85% is 47.6% 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 ENN Energy Holdings 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. ENN Energy Holdings's current Operating Margin % is 7.85%, which is 23% below median its own 10-year median of 10.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ENN Energy Holdings stock overvalued right now?
Based on GuruFocus' analysis, ENN Energy Holdings (XNGSY) is currently considered Significantly Undervalued. The stock's GF Value™ is $35.81, compared to a current price of $21.87 — trading 38.9% below its estimated fair value. The current Operating Margin % is 7.85%, which is 23% below median its 10-year median of 10.23 and 47.6% below the Utilities - Regulated industry median of 14.97. ENN Energy Holdings' overall GF Score™ is 70/100 with 4 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 ENN Energy Holdings (XNGSY), the current Operating Margin % is 7.85% 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 ENN Energy Holdings (XNGSY) Overvalued in 2026?
Based on GuruFocus' analysis, ENN Energy Holdings stock appears to be undervalued.
The current stock price of $21.87 is trading 38.9% below its estimated GF Value™ of $35.81.
GuruFocus considers ENN Energy Holdings to be Significantly Undervalued.
Key valuation signals for XNGSY:
Operating Margin %: 7.85% (23% below median its 10-year median of 10.23)
GF Value™: $35.81 vs. price of $21.87 (38.9% below fair value)
Industry Position: 47.6% below the Utilities - Regulated median (#354 of 499)
No single metric tells the full story. See the XNGSY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ENN Energy Holdings is primarily engaged in distributing and retailing natural gas. By year-end 2025, ENN owned 264 city gas projects in China, with annual retail gas sales volume of 26.61 billion cubic meters. Meanwhile, the aggregate number of connected piped gas residential households reached 32.76 million, with an average gas penetration rate of 66.6%. ENN Energy also has ventured into integrated energy business.
70GF Score
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