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.
Fibocom Wireless Operating Margin % Related Terms
Fibocom Wireless Operating Margin % Historical Data
* Premium members only.
The historical data trend for Fibocom Wireless'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.
HKSE:00638 vs CSCO, CIEN, MSI: Operating Margin % Comparison
For the Communication Equipment subindustry, Fibocom Wireless'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.
Fibocom Wireless Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Fibocom Wireless's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Fibocom Wireless'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.
Fibocom Wireless'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.
Fibocom Wireless (HKSE:00638) has a Operating Margin % of 1.66% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Fibocom Wireless and its competitors. This is 82% below median its historical median of 9.37. Over the past decade, Fibocom Wireless' Operating Margin % has ranged from 4.14 to 12.24. According to the industry distribution chart, Fibocom Wireless ranks #1197 out of 2476 companies in the Hardware industry, placing it in the top 48.3%.
Is Fibocom Wireless' Operating Margin % too high?
Fibocom Wireless' current Operating Margin % of 1.66% is 82% below median its 10-year median of 9.37. Over the past 10 years, this metric has ranged from a low of 4.14 to a high of 12.24. The Hardware industry median Operating Margin % is 3.80. Fibocom Wireless' value of 1.66% is 56.3% below this industry median. Based on the distribution chart, Fibocom Wireless ranks #1197 out of 2476 companies in the Hardware industry, which is above the industry midpoint. Overall, Fibocom Wireless has a GF Score™ of 89/100, reflecting its overall financial health beyond just this single metric.
How does Fibocom Wireless' Operating Margin % compare to CSCO and CIEN?
According to the Hardware industry distribution chart, Fibocom Wireless ranks #1197 out of 2476 companies for Operating Margin %. This puts Fibocom Wireless in the upper half of its industry. The industry median Operating Margin % is 3.80. Fibocom Wireless' value of 1.66% is 56.3% below this benchmark. Historically, Fibocom Wireless' own Operating Margin % has ranged from 4.14 to 12.24 over the past decade. While the company's 10-year median is 9.37 vs. the industry median of 3.80, Fibocom Wireless 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 a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,476 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. Fibocom Wireless's current Operating Margin % of 1.66% is 56.3% 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 Fibocom Wireless 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. Fibocom Wireless's current Operating Margin % is 1.66%, which is 82% below median its own 10-year median of 9.37. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Fibocom Wireless stock overvalued right now?
Fibocom Wireless (HKSE:00638) has a current Operating Margin % of 1.66%. The stock's GF Value™ is HK$8.49, compared to a current price of HK$7.44 — trading 12.4% below its estimated fair value. The current Operating Margin % is 1.66%, which is 82% below median its 10-year median of 9.37 and 56.3% below the Hardware industry median of 3.80. Fibocom Wireless' overall GF Score™ is 89/100 with 7 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 Fibocom Wireless (HKSE:00638), the current Operating Margin % is 1.66% 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 Fibocom Wireless (HKSE:00638) Overvalued in 2026?
Based on GuruFocus' analysis, Fibocom Wireless stock appears to be undervalued.
The current stock price of HK$7.44 is trading 12.4% below its estimated GF Value™ of HK$8.49.
Key valuation signals for HKSE:00638:
Operating Margin %: 1.66% (82% below median its 10-year median of 9.37)
GF Value™: HK$8.49 vs. price of HK$7.44 (12.4% below fair value)
Industry Position: 56.3% below the Hardware median (#1197 of 2476)
No single metric tells the full story. See the HKSE:00638 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Fibocom Wireless Inc, along with its subsidiaries, is engaged in the design, R&D, and sales services of wireless communication modules and communication solutions for industry applications. The company's primary products include wireless communication modules based on 2G, 3G, 4G, 5G, NB-IoT , AI, and other technologies, as well as communication solutions tailored to their industry applications. These wireless communication modules are widely used in fields such as mobile payment, smart grids, vehicle networking, security monitoring, and mobile internet, enabling terminal devices to access the wireless communication networks for data transmission and interaction.
89GF Score
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