Chu Yu Hsiang Co (ROCO:2760) Operating Margin %: -20.00% (As of Dec. 2025)


ROCO:2760 Chu Yu Hsiang Co Ltd ROCO:2760
40 GF Score
Price NT$16.00
GF Value NT$65.88
Valuation Possible Value Trap
! 8 Warning Signs
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What is Chu Yu Hsiang Co Operating Margin %?

Chu Yu Hsiang Co ROCO:2760 +0.31% 40 Operating Margin % is -20.00% as of Dec. 2025. GuruFocus rates ROCO:2760 with a GF Score™ of 40/100 and a GF Value™ of NT$65.88 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 363 Restaurants companies, Chu Yu Hsiang Co ranks worse than 88.43% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Chu Yu Hsiang Co's Operating Income for the six months ended in Dec. 2025 was NT$-22.6 Mil. Chu Yu Hsiang Co's Revenue for the six months ended in Dec. 2025 was NT$113.0 Mil. Therefore, Chu Yu Hsiang Co's Operating Margin % for the quarter that ended in Dec. 2025 was -20.00%.

The historical rank and industry rank for Chu Yu Hsiang Co's Operating Margin % or its related term are showing as below:

ROCO:2760' s Operating Margin % Range Over the Past 10 Years
Min: -9.88   Med: 27.53   Max: 38.32
Current: -9.88


ROCO:2760's Operating Margin % is ranked worse than
88.43% of 363 companies
in the Restaurants industry
Industry Median: 4.36 vs ROCO:2760: -9.88

Chu Yu Hsiang Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.

Chu Yu Hsiang Co's Operating Income for the six months ended in Dec. 2025 was NT$-22.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was NT$-23.7 Mil.

Warning Sign:

Chu Yu Hsiang Co Ltd has recorded a loss in operating income at least once over the past 3 years.


Chu Yu Hsiang Co  (ROCO:2760) 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 Nokia’s 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.


Chu Yu Hsiang Co Operating Margin % Related Terms


Chu Yu Hsiang Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Chu Yu Hsiang Co'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.

Chu Yu Hsiang Co Operating Margin % Chart

Chu Yu Hsiang Co Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial 28.71 27.53 28.44 20.36 -9.88

Chu Yu Hsiang Co Semi-Annual Data
Dec19 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 27.24 25.77 13.99 -0.88 -20.00

ROCO:2760 vs MCD, SBUX, YUM: Operating Margin % Comparison

For the Restaurants subindustry, Chu Yu Hsiang 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.


Chu Yu Hsiang Co Operating Margin % vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Chu Yu Hsiang Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Chu Yu Hsiang Co's Operating Margin % falls into.


ROCO:2760
40GF Score
Chu Yu Hsiang Co Ltd ROCO:2760
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Chu Yu Hsiang 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.

Chu Yu Hsiang Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=-23.732 / 240.196
=-9.88 %

Chu Yu Hsiang Co's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=-22.609 / 113.017
=-20.00 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of -20.00% mean?
Chu Yu Hsiang Co (ROCO:2760) has a Operating Margin % of -20.00% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Chu Yu Hsiang Co and its competitors. According to the industry distribution chart, Chu Yu Hsiang Co ranks #321 out of 363 companies in the Restaurants industry, placing it in the top 88.4%.
Is Chu Yu Hsiang Co's Operating Margin % too high?
Chu Yu Hsiang Co's current Operating Margin % is -20.00%. Based on the distribution chart, Chu Yu Hsiang Co ranks #321 out of 363 companies in the Restaurants industry, which is in the bottom quartile relative to peers. Overall, Chu Yu Hsiang Co has a GF Score™ of 40/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Chu Yu Hsiang Co's Operating Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Chu Yu Hsiang Co ranks #321 out of 363 companies for Operating Margin %. This places Chu Yu Hsiang Co in the lower half of its industry. The industry median Operating Margin % is 4.36. 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 4.36, based on 363 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 Chu Yu Hsiang Co and its competitors. For the Restaurants industry, the median Operating Margin % is 4.36 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chu Yu Hsiang Co's current Operating Margin % is -20.00%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chu Yu Hsiang Co stock overvalued right now?
Based on GuruFocus' analysis, Chu Yu Hsiang Co (ROCO:2760) is currently considered Possible Value Trap. The stock's GF Value™ is NT$65.88, compared to a current price of NT$16.00 — trading 75.7% below its estimated fair value. The current Operating Margin % is -20.00%. Chu Yu Hsiang Co's overall GF Score™ is 40/100 with 8 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 Chu Yu Hsiang Co (ROCO:2760), the current Operating Margin % is -20.00% 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 Chu Yu Hsiang Co (ROCO:2760) Overvalued in 2026?

Based on GuruFocus' analysis, Chu Yu Hsiang Co stock appears to be undervalued. The current stock price of NT$16.00 is trading 75.7% below its estimated GF Value™ of NT$65.88. GuruFocus considers Chu Yu Hsiang Co to be Possible Value Trap.

Key valuation signals for ROCO:2760:

  • Operating Margin %: -20.00%
  • GF Value™: NT$65.88 vs. price of NT$16.00 (75.7% below fair value)
  • GF Score™: 40/100 with 8 warning signs

No single metric tells the full story. See the ROCO:2760 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Chu Yu Hsiang Co Business Description

Address No. 88, Sec. 1, Huizhong Road, 21st Floor-2,, Xitun District, Taichung, TWN, 407555
Chu Yu Hsiang Co Ltd operates a chain of cafe under the Ding Tea brand and sales of related products. The company's product portfolio includes flavored milk, flavored tea, fresh tea, classical flavored tea, yogurt, coffee and chocolate creamy mixture, and creamy milk.
40GF Score

Get the complete analysis for ROCO:2760

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$16.00
Price
NT$65.88
GF Value