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.
Renjie Oldsichuan Catering Management Consult Operating Margin % Related Terms
Renjie Oldsichuan Catering Management Consult 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.
ROCO:2741 vs MCD, SBUX, CMG: Operating Margin % Comparison
For the Restaurants subindustry, Renjie Oldsichuan Catering Management Consult'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.
Renjie Oldsichuan Catering Management Consult Operating Margin % vs Restaurants Industry
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.
Renjie Oldsichuan Catering Management Consult (ROCO:2741) has a Operating Margin % of 5.32% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Renjie Oldsichuan Catering Management Consult and its competitors. This is 39% below median its historical median of 8.75. Over the past decade, Renjie Oldsichuan Catering Management Consult's Operating Margin % has ranged from 3.00 to 16.27. According to the industry distribution chart, Renjie Oldsichuan Catering Management Consult ranks #219 out of 364 companies in the Restaurants industry, placing it in the top 60.2%.
Is Renjie Oldsichuan Catering Management Consult's Operating Margin % too high?
Renjie Oldsichuan Catering Management Consult's current Operating Margin % of 5.32% is 39% below median its 10-year median of 8.75. Over the past 10 years, this metric has ranged from a low of 3.00 to a high of 16.27. The Restaurants industry median Operating Margin % is 4.37. Renjie Oldsichuan Catering Management Consult's value of 5.32% is 21.9% above this industry median. Based on the distribution chart, Renjie Oldsichuan Catering Management Consult ranks #219 out of 364 companies in the Restaurants industry, which is below the industry midpoint. Overall, Renjie Oldsichuan Catering Management Consult has a GF Score™ of 59/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Renjie Oldsichuan Catering Management Consult's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Renjie Oldsichuan Catering Management Consult ranks #219 out of 364 companies for Operating Margin %. This places Renjie Oldsichuan Catering Management Consult in the lower half of its industry. The industry median Operating Margin % is 4.37. Renjie Oldsichuan Catering Management Consult's value of 5.32% is 21.9% above this benchmark. Historically, Renjie Oldsichuan Catering Management Consult's own Operating Margin % has ranged from 3.00 to 16.27 over the past decade. While the company's 10-year median is 8.75 vs. the industry median of 4.37, Renjie Oldsichuan Catering Management Consult 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 a Restaurants company?
The median Operating Margin % among Restaurants companies is 4.37, based on 364 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. Renjie Oldsichuan Catering Management Consult's current Operating Margin % of 5.32% is 21.9% 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 Renjie Oldsichuan Catering Management Consult and its competitors. For the Restaurants industry, the median Operating Margin % is 4.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Renjie Oldsichuan Catering Management Consult's current Operating Margin % is 5.32%, which is 39% below median its own 10-year median of 8.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Renjie Oldsichuan Catering Management Consult stock overvalued right now?
Based on GuruFocus' analysis, Renjie Oldsichuan Catering Management Consult (ROCO:2741) is currently considered Possible Value Trap. The stock's GF Value™ is NT$46.83, compared to a current price of NT$20.60 — trading 56% below its estimated fair value. The current Operating Margin % is 5.32%, which is 39% below median its 10-year median of 8.75 and 21.9% above the Restaurants industry median of 4.37. Renjie Oldsichuan Catering Management Consult's overall GF Score™ is 59/100 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 Renjie Oldsichuan Catering Management Consult (ROCO:2741), the current Operating Margin % is 5.32% 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 Renjie Oldsichuan Catering Management Consult (ROCO:2741) Overvalued in 2026?
Based on GuruFocus' analysis, Renjie Oldsichuan Catering Management Consult stock appears to be undervalued.
The current stock price of NT$20.60 is trading 56% below its estimated GF Value™ of NT$46.83.
GuruFocus considers Renjie Oldsichuan Catering Management Consult to be Possible Value Trap.
Key valuation signals for ROCO:2741:
Operating Margin %: 5.32% (39% below median its 10-year median of 8.75)
GF Value™: NT$46.83 vs. price of NT$20.60 (56% below fair value)
Industry Position: 21.9% above the Restaurants median (#219 of 364)
No single metric tells the full story. See the ROCO:2741 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Renjie Oldsichuan Catering Management Consult Business Description
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