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Gudeng Precision Industrial Co (ROCO:3680) 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.
Gudeng Precision Industrial Co Operating Margin % Related Terms
Gudeng Precision Industrial Co 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.
Gudeng Precision Industrial Co Operating Margin % Chart
ROCO:3680 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Gudeng Precision Industrial 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.
Gudeng Precision Industrial Co Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Gudeng Precision Industrial Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Gudeng Precision Industrial Co's Operating Margin % falls into.
Gudeng Precision Industrial 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.
* 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.
Gudeng Precision Industrial Co (ROCO:3680) has a Operating Margin % of 17.45% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Gudeng Precision Industrial Co and its competitors. This is 52% above median its historical median of 11.45. According to the industry distribution chart, Gudeng Precision Industrial Co ranks #274 out of 1023 companies in the Semiconductors industry, placing it in the top 26.8%.
Is Gudeng Precision Industrial Co's Operating Margin % too high?
Gudeng Precision Industrial Co's current Operating Margin % of 17.45% is 52% above median its 10-year median of 11.45. The Semiconductors industry median Operating Margin % is 5.33. Gudeng Precision Industrial Co's value of 17.45% is 227.4% above this industry median. Based on the distribution chart, Gudeng Precision Industrial Co ranks #274 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Gudeng Precision Industrial Co has a GF Score™ of 89/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Gudeng Precision Industrial Co's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Gudeng Precision Industrial Co ranks #274 out of 1023 companies for Operating Margin %. This puts Gudeng Precision Industrial Co in the upper half of its industry. The industry median Operating Margin % is 5.33. Gudeng Precision Industrial Co's value of 17.45% is 227.4% above this benchmark. While the company's 10-year median is 11.45 vs. the industry median of 5.33, Gudeng Precision Industrial 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.33, based on 1,023 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. Gudeng Precision Industrial Co's current Operating Margin % of 17.45% is 227.4% 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 Gudeng Precision Industrial Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Gudeng Precision Industrial Co's current Operating Margin % is 17.45%, which is 52% above median its own 10-year median of 11.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Gudeng Precision Industrial Co stock overvalued right now?
Based on GuruFocus' analysis, Gudeng Precision Industrial Co (ROCO:3680) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$563.01, compared to a current price of NT$498.50 — trading 11.5% below its estimated fair value. The current Operating Margin % is 17.45%, which is 52% above median its 10-year median of 11.45 and 227.4% above the Semiconductors industry median of 5.33. Gudeng Precision Industrial Co's overall GF Score™ is 89/100 with 3 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 Gudeng Precision Industrial Co (ROCO:3680), the current Operating Margin % is 17.45% 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 Gudeng Precision Industrial Co (ROCO:3680) Overvalued in 2026?
Based on GuruFocus' analysis, Gudeng Precision Industrial Co stock appears to be undervalued.
The current stock price of NT$498.50 is trading 11.5% below its estimated GF Value™ of NT$563.01.
GuruFocus considers Gudeng Precision Industrial Co to be Modestly Undervalued.
Key valuation signals for ROCO:3680:
Operating Margin %: 17.45% (52% above median its 10-year median of 11.45)
GF Value™: NT$563.01 vs. price of NT$498.50 (11.5% below fair value)
Industry Position: 227.4% above the Semiconductors median (#274 of 1023)
No single metric tells the full story. See the ROCO:3680 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Gudeng Precision Industrial Co Business Description
Gudeng Precision Industrial Co Ltd main business activities include the trading and manufacturing of molds, mask packages, etc. Its products and services include Photomask carriers, Wafer carriers, Equipment products, Semiconductor manufacturing materials and consumables, and others. The company's segments include Semiconductor Carriers and Semiconductor Equipment manufacturing. It generates maximum revenue from the Semiconductor manufacturing segment and from Taiwan.
89GF Score
Get the complete analysis for ROCO:3680
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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