Ching Chan Optical Technology CoROCO:2070 +1.45%77 Operating Margin % is 17.89% as of Dec. 2025, which is 25% above its 10-year median of 14.31. GuruFocus rates ROCO:2070 with a GF Score™ of 77/100 and a GF Value™ of NT$42.13 (Significantly Overvalued). The stock has 1 warning sign investors should review. Among 3,032 Industrial Products companies, Ching Chan Optical Technology Co ranks better than 78.69% on this metric.
The historical rank and industry rank for Ching Chan Optical Technology Co's Operating Margin % or its related term are showing as below:
ROCO:2070'
s Operating Margin % Range Over the Past 10 Years
Min: -7.56 Med: 14.31 Max: 19.61
Current: 13.7
ROCO:2070's Operating Margin % is ranked better than 78.69% of 3032
companies
in the Industrial Products industry
Industry Median: 6.535
vs ROCO:2070: 13.70
Ching Chan Optical Technology Co (ROCO:2070) 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.
Ching Chan Optical Technology Co Operating Margin % Related Terms
Ching Chan Optical Technology Co 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.
Ching Chan Optical Technology Co Operating Margin % Chart
ROCO:2070 vs GEV, ETN, PH: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Ching Chan Optical Technology Co'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.
Ching Chan Optical Technology Co Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Ching Chan Optical Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Ching Chan Optical Technology Co's Operating Margin % falls into.
Ching Chan Optical Technology Co 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.
Ching Chan Optical Technology Co (ROCO:2070) has a Operating Margin % of 17.89% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Ching Chan Optical Technology Co and its competitors. This is 25% above median its historical median of 14.31. According to the industry distribution chart, Ching Chan Optical Technology Co ranks #646 out of 3032 companies in the Industrial Products industry, placing it in the top 21.3%.
Is Ching Chan Optical Technology Co's Operating Margin % too high?
Ching Chan Optical Technology Co's current Operating Margin % of 17.89% is 25% above median its 10-year median of 14.31. The Industrial Products industry median Operating Margin % is 6.54. Ching Chan Optical Technology Co's value of 17.89% is 173.8% above this industry median. Based on the distribution chart, Ching Chan Optical Technology Co ranks #646 out of 3032 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Ching Chan Optical Technology Co has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Ching Chan Optical Technology Co's Operating Margin % compare to GEV and ETN?
According to the Industrial Products industry distribution chart, Ching Chan Optical Technology Co ranks #646 out of 3032 companies for Operating Margin %. This places Ching Chan Optical Technology Co in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.54. Ching Chan Optical Technology Co's value of 17.89% is 173.8% above this benchmark. While the company's 10-year median is 14.31 vs. the industry median of 6.54, Ching Chan Optical Technology Co has consistently been above 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 Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.54, based on 3,032 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. Ching Chan Optical Technology Co's current Operating Margin % of 17.89% is 173.8% 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 Ching Chan Optical Technology Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ching Chan Optical Technology Co's current Operating Margin % is 17.89%, which is 25% above median its own 10-year median of 14.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ching Chan Optical Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Ching Chan Optical Technology Co (ROCO:2070) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$42.13, compared to a current price of NT$63.10 — trading 49.8% above its estimated fair value. The current Operating Margin % is 17.89%, which is 25% above median its 10-year median of 14.31 and 173.8% above the Industrial Products industry median of 6.54. Ching Chan Optical Technology Co's overall GF Score™ is 77/100 with 1 warning sign 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 Ching Chan Optical Technology Co (ROCO:2070), the current Operating Margin % is 17.89% 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 Ching Chan Optical Technology Co (ROCO:2070) Overvalued in 2026?
Based on GuruFocus' analysis, Ching Chan Optical Technology Co stock appears to be overvalued.
The current stock price of NT$63.10 is trading 49.8% above its estimated GF Value™ of NT$42.13.
GuruFocus considers Ching Chan Optical Technology Co to be Significantly Overvalued.
Key valuation signals for ROCO:2070:
Operating Margin %: 17.89% (25% above median its 10-year median of 14.31)
GF Value™: NT$42.13 vs. price of NT$63.10 (49.8% above fair value)
Industry Position: 173.8% above the Industrial Products median (#646 of 3032)
No single metric tells the full story. See the ROCO:2070 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ching Chan Optical Technology Co Business Description
Ching Chan Optical Technology Co Ltd is engaged in providing screening equipment and other products. The company offers Screening Machine, Forming Machine, Pressure sensor, Intelligent automatic car handling system, and surveillance system among others.
77GF Score
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