Zhibao TechnologyZBAO +3.15%10 Operating Margin % is 2.25% as of Dec. 2025. GuruFocus rates ZBAO with a GF Score™ of 10/100. The stock has 4 warning signs investors should review. Among 64 Insurance companies, Zhibao Technology ranks worse than 85.94% on this metric.
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.
Zhibao Technology Operating Margin % Related Terms
Zhibao Technology Operating Margin % Historical Data
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The historical data trend for Zhibao Technology'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.
ZBAO vs HUIZ, EHTH, XHG: Operating Margin % Comparison
For the Insurance Brokers subindustry, Zhibao Technology'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.
Zhibao Technology Operating Margin % vs Insurance Industry
For the Insurance industry and Financial Services sector, Zhibao Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zhibao Technology's Operating Margin % falls into.
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.
Zhibao Technology's Operating Margin % for the fiscal year that ended in Jun. 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.
Zhibao Technology (ZBAO) has a Operating Margin % of 2.25% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zhibao Technology and its competitors. According to the industry distribution chart, Zhibao Technology ranks #55 out of 64 companies in the Insurance industry, placing it in the top 85.9%.
Is Zhibao Technology's Operating Margin % too high?
Zhibao Technology's current Operating Margin % is 2.25%. The Insurance industry median Operating Margin % is 11.62. Zhibao Technology's value of 2.25% is 80.6% below this industry median. Based on the distribution chart, Zhibao Technology ranks #55 out of 64 companies in the Insurance industry, which is in the bottom quartile relative to peers. Overall, Zhibao Technology has a GF Score™ of 10/100, reflecting its overall financial health beyond just this single metric.
How does Zhibao Technology's Operating Margin % compare to HUIZ and EHTH?
According to the Insurance industry distribution chart, Zhibao Technology ranks #55 out of 64 companies for Operating Margin %. This places Zhibao Technology in the lower half of its industry. The industry median Operating Margin % is 11.62. Zhibao Technology's value of 2.25% is 80.6% below this benchmark. 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 Insurance company?
The median Operating Margin % among Insurance companies is 11.62, based on 64 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. Zhibao Technology's current Operating Margin % of 2.25% is 80.6% 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 Zhibao Technology and its competitors. For the Insurance industry, the median Operating Margin % is 11.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhibao Technology's current Operating Margin % is 2.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhibao Technology stock overvalued right now?
Zhibao Technology (ZBAO) has a current Operating Margin % of 2.25%. The current Operating Margin % is 2.25% and 80.6% below the Insurance industry median of 11.62. Zhibao Technology's overall GF Score™ is 10/100 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 Zhibao Technology (ZBAO), the current Operating Margin % is 2.25% 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.
Zhibao Technology Inc is an insurance technology company providing digital insurance brokerage services in China. The Company operates a 2B2C digital embedded insurance business model, which it pioneered in China, and provides managing general underwriter (MGU) services to insurance companies, including product design, underwriting, reinsurance, claims, and risk control within specific product or market segments. It offers customized digital insurance solutions for B-side channels, including Internet platforms, enterprises, and government agencies, by embedding insurance products into existing business platforms and providing digital insurance brokerage services to C-end customers.
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