TC Unterhaltungselektronik AGFRA:TCU -67.86% Operating Margin % is 9.21% as of Jun. 2025. The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, TC Unterhaltungselektronik AG ranks better than 73.1% on this metric.
TC Unterhaltungselektronik AG (FRA:TCU) 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.
TC Unterhaltungselektronik AG Operating Margin % Related Terms
TC Unterhaltungselektronik AG 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.
TC Unterhaltungselektronik AG Operating Margin % Chart
For the Consumer Electronics subindustry, TC Unterhaltungselektronik AG'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.
TC Unterhaltungselektronik AG Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, TC Unterhaltungselektronik AG's Operating Margin % distribution charts can be found below:
* The bar in red indicates where TC Unterhaltungselektronik AG's Operating Margin % falls into.
TC Unterhaltungselektronik AG 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.
* 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.
TC Unterhaltungselektronik AG (FRA:TCU) has a Operating Margin % of 9.21% as of Jun. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on TC Unterhaltungselektronik AG and its competitors. According to the industry distribution chart, TC Unterhaltungselektronik AG ranks #665 out of 2472 companies in the Hardware industry, placing it in the top 26.9%.
Is TC Unterhaltungselektronik AG's Operating Margin % too high?
TC Unterhaltungselektronik AG's current Operating Margin % is 9.21%. The Hardware industry median Operating Margin % is 3.80. TC Unterhaltungselektronik AG's value of 9.21% is 142.4% above this industry median. Based on the distribution chart, TC Unterhaltungselektronik AG ranks #665 out of 2472 companies in the Hardware industry, which is above the industry midpoint.
How does TC Unterhaltungselektronik AG's Operating Margin % compare to AAPL?
According to the Hardware industry distribution chart, TC Unterhaltungselektronik AG ranks #665 out of 2472 companies for Operating Margin %. This puts TC Unterhaltungselektronik AG in the upper half of its industry. The industry median Operating Margin % is 3.80. TC Unterhaltungselektronik AG's value of 9.21% is 142.4% above 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 a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 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. TC Unterhaltungselektronik AG's current Operating Margin % of 9.21% is 142.4% 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 TC Unterhaltungselektronik AG and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TC Unterhaltungselektronik AG's current Operating Margin % is 9.21%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TC Unterhaltungselektronik AG stock overvalued right now?
TC Unterhaltungselektronik AG (FRA:TCU) has a current Operating Margin % of 9.21%. The current Operating Margin % is 9.21% and 142.4% above the Hardware industry median of 3.80. 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 TC Unterhaltungselektronik AG (FRA:TCU), the current Operating Margin % is 9.21% as of Jun. 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.
TC Unterhaltungselektronik AG Business Description
TC Unterhaltungselektronik AG develops and produces TV-accessory equipment and broadband products for external companies. The firm has worked as hardware and software developers for iTV, IPTV and TVoiP. Its projects include ULTRAUPLOAD.lO, COUPON-CASH.COM, SNOWDEN-COIN ICO, and others.
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