K World Computer CoROCO:3287 -4.22%73 Operating Margin % is 5.14% as of Dec. 2025, which is 223% above its 10-year median of 1.59. GuruFocus rates ROCO:3287 with a GF Score™ of 73/100 and a GF Value™ of NT$48.87 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, K World Computer Co ranks worse than 62.86% on this metric.
K World Computer Co (ROCO:3287) 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.
K World Computer Co Operating Margin % Related Terms
K World Computer Co Operating Margin % Historical Data
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The historical data trend for K World Computer 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:3287 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, K World Computer 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.
K World Computer Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, K World Computer Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where K World Computer Co's Operating Margin % falls into.
K World Computer 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.
K World Computer 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.
K World Computer Co (ROCO:3287) has a Operating Margin % of 5.14% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on K World Computer Co and its competitors. This is 223% above median its historical median of 1.59. According to the industry distribution chart, K World Computer Co ranks #1554 out of 2472 companies in the Hardware industry, placing it in the top 62.9%.
Is K World Computer Co's Operating Margin % too high?
K World Computer Co's current Operating Margin % of 5.14% is 223% above median its 10-year median of 1.59. The Hardware industry median Operating Margin % is 3.81. K World Computer Co's value of 5.14% is 34.9% above this industry median. Based on the distribution chart, K World Computer Co ranks #1554 out of 2472 companies in the Hardware industry, which is below the industry midpoint. Overall, K World Computer Co has a GF Score™ of 73/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does K World Computer Co's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, K World Computer Co ranks #1554 out of 2472 companies for Operating Margin %. This places K World Computer Co in the lower half of its industry. The industry median Operating Margin % is 3.81. K World Computer Co's value of 5.14% is 34.9% above this benchmark. While the company's 10-year median is 1.59 vs. the industry median of 3.81, K World Computer 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 a Hardware company?
The median Operating Margin % among Hardware companies is 3.81, based on 2,472 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. K World Computer Co's current Operating Margin % of 5.14% is 34.9% 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 K World Computer Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. K World Computer Co's current Operating Margin % is 5.14%, which is 223% above median its own 10-year median of 1.59. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is K World Computer Co stock overvalued right now?
Based on GuruFocus' analysis, K World Computer Co (ROCO:3287) is currently considered Significantly Undervalued. The stock's GF Value™ is NT$48.87, compared to a current price of NT$31.75 — trading 35% below its estimated fair value. The current Operating Margin % is 5.14%, which is 223% above median its 10-year median of 1.59 and 34.9% above the Hardware industry median of 3.81. K World Computer Co's overall GF Score™ is 73/100 with 4 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 K World Computer Co (ROCO:3287), the current Operating Margin % is 5.14% 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 K World Computer Co (ROCO:3287) Overvalued in 2026?
Based on GuruFocus' analysis, K World Computer Co stock appears to be undervalued.
The current stock price of NT$31.75 is trading 35% below its estimated GF Value™ of NT$48.87.
GuruFocus considers K World Computer Co to be Significantly Undervalued.
Key valuation signals for ROCO:3287:
Operating Margin %: 5.14% (223% above median its 10-year median of 1.59)
GF Value™: NT$48.87 vs. price of NT$31.75 (35% below fair value)
Industry Position: 34.9% above the Hardware median (#1554 of 2472)
No single metric tells the full story. See the ROCO:3287 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
K World Computer Co Ltd is engaged in the sales, manufacturing and research and development of computer peripheral products. Its products and services include, gaming earphones, wall charger, car charger, pure Analog TV tuner cards to Hybrid TV tuner sticks.
73GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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