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Kuen Ling Machinery Refrigerating Co (ROCO:4527) 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.
Kuen Ling Machinery Refrigerating Co Operating Margin % Related Terms
Kuen Ling Machinery Refrigerating 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.
Kuen Ling Machinery Refrigerating Co Operating Margin % Chart
ROCO:4527 vs APH, GLW: Operating Margin % Comparison
For the Electronic Components subindustry, Kuen Ling Machinery Refrigerating 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.
Kuen Ling Machinery Refrigerating Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Kuen Ling Machinery Refrigerating Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kuen Ling Machinery Refrigerating Co's Operating Margin % falls into.
Kuen Ling Machinery Refrigerating 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.
Kuen Ling Machinery Refrigerating Co (ROCO:4527) has a Operating Margin % of 17.92% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kuen Ling Machinery Refrigerating Co and its competitors. This is 89% above median its historical median of 9.46. Over the past decade, Kuen Ling Machinery Refrigerating Co's Operating Margin % has ranged from 7.00 to 11.58. According to the industry distribution chart, Kuen Ling Machinery Refrigerating Co ranks #501 out of 2477 companies in the Hardware industry, placing it in the top 20.2%.
Is Kuen Ling Machinery Refrigerating Co's Operating Margin % too high?
Kuen Ling Machinery Refrigerating Co's current Operating Margin % of 17.92% is 89% above median its 10-year median of 9.46. Over the past 10 years, this metric has ranged from a low of 7.00 to a high of 11.58. The Hardware industry median Operating Margin % is 3.82. Kuen Ling Machinery Refrigerating Co's value of 17.92% is 369.1% above this industry median. Based on the distribution chart, Kuen Ling Machinery Refrigerating Co ranks #501 out of 2477 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Kuen Ling Machinery Refrigerating Co has a GF Score™ of 68/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Kuen Ling Machinery Refrigerating Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Kuen Ling Machinery Refrigerating Co ranks #501 out of 2477 companies for Operating Margin %. This places Kuen Ling Machinery Refrigerating Co in the top 20% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.82. Kuen Ling Machinery Refrigerating Co's value of 17.92% is 369.1% above this benchmark. Historically, Kuen Ling Machinery Refrigerating Co's own Operating Margin % has ranged from 7.00 to 11.58 over the past decade. While the company's 10-year median is 9.46 vs. the industry median of 3.82, Kuen Ling Machinery Refrigerating 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 3.82, based on 2,477 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. Kuen Ling Machinery Refrigerating Co's current Operating Margin % of 17.92% is 369.1% 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 Kuen Ling Machinery Refrigerating Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuen Ling Machinery Refrigerating Co's current Operating Margin % is 17.92%, which is 89% above median its own 10-year median of 9.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuen Ling Machinery Refrigerating Co stock overvalued right now?
Based on GuruFocus' analysis, Kuen Ling Machinery Refrigerating Co (ROCO:4527) is currently considered Fairly Valued. The stock's GF Value™ is NT$36.89, compared to a current price of NT$39.55 — trading 7.2% above its estimated fair value. The current Operating Margin % is 17.92%, which is 89% above median its 10-year median of 9.46 and 369.1% above the Hardware industry median of 3.82. Kuen Ling Machinery Refrigerating Co's overall GF Score™ is 68/100 with 2 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 Kuen Ling Machinery Refrigerating Co (ROCO:4527), the current Operating Margin % is 17.92% 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 Kuen Ling Machinery Refrigerating Co (ROCO:4527) Overvalued in 2026?
Based on GuruFocus' analysis, Kuen Ling Machinery Refrigerating Co stock appears to be overvalued.
The current stock price of NT$39.55 is trading 7.2% above its estimated GF Value™ of NT$36.89.
GuruFocus considers Kuen Ling Machinery Refrigerating Co to be Fairly Valued.
Key valuation signals for ROCO:4527:
Operating Margin %: 17.92% (89% above median its 10-year median of 9.46)
GF Value™: NT$36.89 vs. price of NT$39.55 (7.2% above fair value)
Industry Position: 369.1% above the Hardware median (#501 of 2477)
No single metric tells the full story. See the ROCO:4527 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kuen Ling Machinery Refrigerating Co Business Description
Kuen Ling Machinery Refrigerating Co Ltd is engaged in the installation, maintenance, repair, assembly, manufacturing, processing, buying and selling, domestic and international sales, and leasing of condensers, ice water coolers, ice water units, and refrigeration units. Its products are water-cooled centrifugal, screw type, flooded type chiller units, air-cooled chiller unit, computer room packaged chiller units, thermal storage ice tank, and vacuum freeze-dried equipment. There are three segments of the Group, which are operation bases in Taiwan, Mainland China and Vietnam regions.
68GF Score
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