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The historical rank and industry rank for Orient Europharma Co's Operating Margin % or its related term are showing as below:
ROCO:4120'
s Operating Margin % Range Over the Past 10 Years
Min: -6.5 Med: 1.88 Max: 9.05
Current: -6.5
ROCO:4120's Operating Margin % is ranked worse than 76.96% of 959
companies
in the Drug Manufacturers industry
Industry Median: 7.59
vs ROCO:4120: -6.50
Orient Europharma Co's 5-Year Average Operating Margin % Growth Rate was 0.00% per year.
Orient Europharma Co (ROCO:4120) 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.
Orient Europharma Co Operating Margin % Related Terms
Orient Europharma Co Operating Margin % Historical Data
* Premium members only.
The historical data trend for Orient Europharma 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:4120 vs ZTS, UTHR: Operating Margin % Comparison
For the Drug Manufacturers - Specialty & Generic subindustry, Orient Europharma 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.
Orient Europharma Co Operating Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Orient Europharma Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Orient Europharma Co's Operating Margin % falls into.
Orient Europharma 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.
Orient Europharma 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.
Orient Europharma Co (ROCO:4120) has a Operating Margin % of -16.80% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Orient Europharma Co and its competitors. According to the industry distribution chart, Orient Europharma Co ranks #738 out of 959 companies in the Drug Manufacturers industry, placing it in the top 77%.
Is Orient Europharma Co's Operating Margin % too high?
Orient Europharma Co's current Operating Margin % is -16.80%. Based on the distribution chart, Orient Europharma Co ranks #738 out of 959 companies in the Drug Manufacturers industry, which is in the bottom quartile relative to peers. Overall, Orient Europharma Co has a GF Score™ of 60/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Orient Europharma Co's Operating Margin % compare to ZTS and UTHR?
According to the Drug Manufacturers industry distribution chart, Orient Europharma Co ranks #738 out of 959 companies for Operating Margin %. This places Orient Europharma Co in the lower half of its industry. The industry median Operating Margin % is 7.59. 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 Drug Manufacturers company?
The median Operating Margin % among Drug Manufacturers companies is 7.59, based on 959 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 Orient Europharma Co and its competitors. For the Drug Manufacturers industry, the median Operating Margin % is 7.59 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Orient Europharma Co's current Operating Margin % is -16.80%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Orient Europharma Co stock overvalued right now?
Based on GuruFocus' analysis, Orient Europharma Co (ROCO:4120) is currently considered Fairly Valued. The stock's GF Value™ is NT$44.98, compared to a current price of NT$44.40 — trading 1.3% below its estimated fair value. The current Operating Margin % is -16.80%. Orient Europharma Co's overall GF Score™ is 60/100 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 Orient Europharma Co (ROCO:4120), the current Operating Margin % is -16.80% 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 Orient Europharma Co (ROCO:4120) Overvalued in 2026?
Based on GuruFocus' analysis, Orient Europharma Co stock appears to be undervalued.
The current stock price of NT$44.40 is trading 1.3% below its estimated GF Value™ of NT$44.98.
GuruFocus considers Orient Europharma Co to be Fairly Valued.
Key valuation signals for ROCO:4120:
Operating Margin %: -16.80%
GF Value™: NT$44.98 vs. price of NT$44.40 (1.3% below fair value)
No single metric tells the full story. See the ROCO:4120 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Orient Europharma Co Ltd is a Taiwan-based company engaged in the wholesale of Western Pharmaceutical and Medical Devices. The firm also manufactures drugs and medicines, Beverages, Cleaning Preparations, Cosmetics, Medical Devices, and Other Food Products. Its products cover various therapeutic areas, including the central nervous system, cardiovascular, diabetes, allergy, cosmetics, and health supplements. The company's segments include: Western Pharma BU which includes manufacture and sale of pharmaceutical and cosmetic products; and Nutricare BU includes sale of various nutrition supplements and consumable healthcare products. It derives maximum revenue from Western Pharma BU segment. Geographically, it operates in Taiwan, China, and Southeast Asia.
60GF Score
Get the complete analysis for ROCO:4120
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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