Howteh Technology CoROCO:3114 -9.88%63 Operating Margin % is 2.95% as of Dec. 2025, which is 30% below its 10-year median of 4.24. GuruFocus rates ROCO:3114 with a GF Score™ of 63/100 and a GF Value™ of NT$27.63 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 156 Industrial Distribution companies, Howteh Technology Co ranks worse than 65.38% on this metric.
Howteh Technology Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -9.2%.
The historical rank and industry rank for Howteh Technology Co's Operating Margin % or its related term are showing as below:
ROCO:3114'
s Operating Margin % Range Over the Past 10 Years
Min: 2.29 Med: 4.24 Max: 5.16
Current: 3.22
ROCO:3114's Operating Margin % is ranked worse than 65.38% of 156
companies
in the Industrial Distribution industry
Industry Median: 4.765
vs ROCO:3114: 3.22
Howteh Technology Co's 5-Year Average Operating Margin % Growth Rate was -9.20% per year.
Howteh Technology Co (ROCO:3114) 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.
Howteh Technology Co Operating Margin % Related Terms
Howteh Technology Co Operating Margin % Historical Data
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The historical data trend for Howteh Technology 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.
ROCO:3114 vs GWW, FAST, FERG: Operating Margin % Comparison
For the Industrial Distribution subindustry, Howteh 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.
Howteh Technology Co Operating Margin % vs Industrial Distribution Industry
For the Industrial Distribution industry and Industrials sector, Howteh Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Howteh Technology Co's Operating Margin % falls into.
Howteh 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.
Howteh Technology Co'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.
Howteh Technology Co (ROCO:3114) has a Operating Margin % of 2.95% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Howteh Technology Co and its competitors. This is 30% below median its historical median of 4.24. Over the past decade, Howteh Technology Co's Operating Margin % has ranged from 2.29 to 5.16. According to the industry distribution chart, Howteh Technology Co ranks #102 out of 156 companies in the Industrial Distribution industry, placing it in the top 65.4%.
Is Howteh Technology Co's Operating Margin % too high?
Howteh Technology Co's current Operating Margin % of 2.95% is 30% below median its 10-year median of 4.24. Over the past 10 years, this metric has ranged from a low of 2.29 to a high of 5.16. The Industrial Distribution industry median Operating Margin % is 4.77. Howteh Technology Co's value of 2.95% is 38.1% below this industry median. Based on the distribution chart, Howteh Technology Co ranks #102 out of 156 companies in the Industrial Distribution industry, which is below the industry midpoint. Overall, Howteh Technology Co has a GF Score™ of 63/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howteh Technology Co's Operating Margin % compare to GWW and FAST?
According to the Industrial Distribution industry distribution chart, Howteh Technology Co ranks #102 out of 156 companies for Operating Margin %. This places Howteh Technology Co in the lower half of its industry. The industry median Operating Margin % is 4.77. Howteh Technology Co's value of 2.95% is 38.1% below this benchmark. Historically, Howteh Technology Co's own Operating Margin % has ranged from 2.29 to 5.16 over the past decade. While the company's 10-year median is 4.24 vs. the industry median of 4.77, Howteh Technology Co 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 an Industrial Distribution company?
The median Operating Margin % among Industrial Distribution companies is 4.77, based on 156 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. Howteh Technology Co's current Operating Margin % of 2.95% is 38.1% 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 Howteh Technology Co and its competitors. For the Industrial Distribution industry, the median Operating Margin % is 4.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howteh Technology Co's current Operating Margin % is 2.95%, which is 30% below median its own 10-year median of 4.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howteh Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Howteh Technology Co (ROCO:3114) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$27.63, compared to a current price of NT$52.00 — trading 88.2% above its estimated fair value. The current Operating Margin % is 2.95%, which is 30% below median its 10-year median of 4.24 and 38.1% below the Industrial Distribution industry median of 4.77. Howteh Technology Co's overall GF Score™ is 63/100 with 6 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 Howteh Technology Co (ROCO:3114), the current Operating Margin % is 2.95% 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 Howteh Technology Co (ROCO:3114) Overvalued in 2026?
Based on GuruFocus' analysis, Howteh Technology Co stock appears to be overvalued.
The current stock price of NT$52.00 is trading 88.2% above its estimated GF Value™ of NT$27.63.
GuruFocus considers Howteh Technology Co to be Significantly Overvalued.
Key valuation signals for ROCO:3114:
Operating Margin %: 2.95% (30% below median its 10-year median of 4.24)
GF Value™: NT$27.63 vs. price of NT$52.00 (88.2% above fair value)
Industry Position: 38.1% below the Industrial Distribution median (#102 of 156)
No single metric tells the full story. See the ROCO:3114 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Howteh Technology Co Ltd is engaged mainly in trading and agency business in passive electronic components, active electronic components, integrated circuit carrier board equipment, chemicals and raw materials, semiconductors and optical equipment. Its operating segment includes Taiwan Segment responsible for the agency sales of electronic components and process equipment in Taiwan; and China and South East Asia segment responsible for the distribution of electronic components in Eastern and Southern China (including Hongkong) and Vietnam. The majority of the revenue is derived from the Taiwan segment.
63GF Score
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