Zhongsheng Group Holdings Ltd has recorded a loss in operating income at least once over the past 3 years.
Zhongsheng Group Holdings (OTCPK:ZSHGY) 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.
Zhongsheng Group Holdings Operating Margin % Related Terms
Zhongsheng Group Holdings Operating Margin % Historical Data
* 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.
Zhongsheng Group Holdings Operating Margin % Chart
ZSHGY vs CVNA, PAG, ALTB: Operating Margin % Comparison
For the Auto & Truck Dealerships subindustry, Zhongsheng Group 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.
Zhongsheng Group Holdings Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Zhongsheng Group Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Zhongsheng Group Holdings's Operating Margin % falls into.
Zhongsheng Group 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.
Zhongsheng Group 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.
Zhongsheng Group Holdings (ZSHGY) has a Operating Margin % of -1.12% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Zhongsheng Group Holdings and its competitors. According to the industry distribution chart, Zhongsheng Group Holdings ranks #1092 out of 1325 companies in the Vehicles & Parts industry, placing it in the top 82.4%.
Is Zhongsheng Group Holdings' Operating Margin % too high?
Zhongsheng Group Holdings' current Operating Margin % is -1.12%. Based on the distribution chart, Zhongsheng Group Holdings ranks #1092 out of 1325 companies in the Vehicles & Parts industry, which is in the bottom quartile relative to peers. Overall, Zhongsheng Group Holdings has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhongsheng Group Holdings' Operating Margin % compare to CVNA and PAG?
According to the Vehicles & Parts industry distribution chart, Zhongsheng Group Holdings ranks #1092 out of 1325 companies for Operating Margin %. This places Zhongsheng Group Holdings in the lower half of its industry. The industry median Operating Margin % is 4.86. 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 Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.86, based on 1,325 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 Zhongsheng Group Holdings and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.86 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhongsheng Group Holdings's current Operating Margin % is -1.12%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhongsheng Group Holdings stock overvalued right now?
Based on GuruFocus' analysis, Zhongsheng Group Holdings (ZSHGY) is currently considered Significantly Undervalued. The stock's GF Value™ is $19.58, compared to a current price of $6.75 — trading 65.5% below its estimated fair value. The current Operating Margin % is -1.12%. Zhongsheng Group Holdings' 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 Zhongsheng Group Holdings (ZSHGY), the current Operating Margin % is -1.12% 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 Zhongsheng Group Holdings (ZSHGY) Overvalued in 2026?
Based on GuruFocus' analysis, Zhongsheng Group Holdings stock appears to be undervalued.
The current stock price of $6.75 is trading 65.5% below its estimated GF Value™ of $19.58.
GuruFocus considers Zhongsheng Group Holdings to be Significantly Undervalued.
Key valuation signals for ZSHGY:
Operating Margin %: -1.12%
GF Value™: $19.58 vs. price of $6.75 (65.5% below fair value)
No single metric tells the full story. See the ZSHGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhongsheng Group Holdings Ltd principally engaged in the sale and service of motor vehicles. The principal activity of the Company is investment holding. It has one reportable segment which is the sale of motor vehicles and the provision of related services. The company's automobile brands including luxury brands of Mercedes-Benz, Lexus, BMW, Audi, Jaguar Land Rover, Porsche, Volvo and AITO, and mid-to-high end automobile brands including Toyota, Nissan and Honda. In addition to its new automobile sales business, its after-sales businesses offer spare parts, automobile accessories, repair and maintenance services, detailing services, and other automobile-related products and services.
57GF Score
Get the complete analysis for ZSHGY
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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