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Arbor TechnologyROCO:3594 +7.22%63 Operating Margin % is 11.17% as of Dec. 2025, which is 142% above its 10-year median of 4.61. GuruFocus rates ROCO:3594 with a GF Score™ of 63/100 and a GF Value™ of NT$52.24 (Modestly Overvalued). The stock has 12 warning signs investors should review. Among 2,475 Hardware companies, Arbor Technology ranks better than 57.05% on this metric.
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.
Arbor Technology Operating Margin % Related Terms
Arbor Technology Operating Margin % Historical Data
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The historical data trend for Arbor Technology'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:3594 vs DELL, ANET, SNDK: Operating Margin % Comparison
For the Computer Hardware subindustry, Arbor Technology'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.
Arbor Technology Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Arbor Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Arbor Technology's Operating Margin % falls into.
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.
Arbor Technology'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.
Arbor Technology (ROCO:3594) has a Operating Margin % of 11.17% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Arbor Technology and its competitors. This is 142% above median its historical median of 4.61. According to the industry distribution chart, Arbor Technology ranks #1063 out of 2475 companies in the Hardware industry, placing it in the top 42.9%.
Is Arbor Technology's Operating Margin % too high?
Arbor Technology's current Operating Margin % of 11.17% is 142% above median its 10-year median of 4.61. The Hardware industry median Operating Margin % is 3.84. Arbor Technology's value of 11.17% is 190.9% above this industry median. Based on the distribution chart, Arbor Technology ranks #1063 out of 2475 companies in the Hardware industry, which is above the industry midpoint. Overall, Arbor Technology has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arbor Technology's Operating Margin % compare to DELL and ANET?
According to the Hardware industry distribution chart, Arbor Technology ranks #1063 out of 2475 companies for Operating Margin %. This puts Arbor Technology in the upper half of its industry. The industry median Operating Margin % is 3.84. Arbor Technology's value of 11.17% is 190.9% above this benchmark. While the company's 10-year median is 4.61 vs. the industry median of 3.84, Arbor Technology 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 3.84, based on 2,475 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. Arbor Technology's current Operating Margin % of 11.17% is 190.9% 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 Arbor Technology and its competitors. For the Hardware industry, the median Operating Margin % is 3.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arbor Technology's current Operating Margin % is 11.17%, which is 142% above median its own 10-year median of 4.61. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arbor Technology stock overvalued right now?
Based on GuruFocus' analysis, Arbor Technology (ROCO:3594) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$52.24, compared to a current price of NT$57.90 — trading 10.8% above its estimated fair value. The current Operating Margin % is 11.17%, which is 142% above median its 10-year median of 4.61 and 190.9% above the Hardware industry median of 3.84. Arbor Technology's overall GF Score™ is 63/100 with 12 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 Arbor Technology (ROCO:3594), the current Operating Margin % is 11.17% 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 Arbor Technology (ROCO:3594) Overvalued in 2026?
Based on GuruFocus' analysis, Arbor Technology stock appears to be overvalued.
The current stock price of NT$57.90 is trading 10.8% above its estimated GF Value™ of NT$52.24.
GuruFocus considers Arbor Technology to be Modestly Overvalued.
Key valuation signals for ROCO:3594:
Operating Margin %: 11.17% (142% above median its 10-year median of 4.61)
GF Value™: NT$52.24 vs. price of NT$57.90 (10.8% above fair value)
Industry Position: 190.9% above the Hardware median (#1063 of 2475)
No single metric tells the full story. See the ROCO:3594 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arbor Technology Corp is a Taiwan-based company that engages in the manufacture and sale of computing platforms and mobility solutions. The Company manufactures and sells industrial motherboards, computer products, peripheral devices, electronic parts, and related products. The company operates in geographical areas of Taiwan, Mainland China, America, Europe, Korea, and other countries.
63GF Score
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