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Motion Technology Electric & Machinery Co (ROCO:4589) 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.
Motion Technology Electric & Machinery Co Operating Margin % Related Terms
Motion Technology Electric & Machinery 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.
Motion Technology Electric & Machinery Co Operating Margin % Chart
Motion Technology Electric & Machinery Co Annual Data
Trend
Dec21
Dec22
Dec23
Dec24
Dec25
Operating Margin %
3.05
8.80
9.16
8.80
1.81
Motion Technology Electric & Machinery Co Semi-Annual Data
ROCO:4589 vs VRT, BE: Operating Margin % Comparison
For the Electrical Equipment & Parts subindustry, Motion Technology Electric & Machinery 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.
Motion Technology Electric & Machinery Co Operating Margin % vs Industrial Products Industry
Motion Technology Electric & Machinery 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.
Motion Technology Electric & Machinery Co (ROCO:4589) has a Operating Margin % of 9.13% as of Jun. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Motion Technology Electric & Machinery Co and its competitors. This is near median its historical median of 8.80. Over the past decade, Motion Technology Electric & Machinery Co's Operating Margin % has ranged from 1.81 to 9.16. According to the industry distribution chart, Motion Technology Electric & Machinery Co ranks #1888 out of 3045 companies in the Industrial Products industry, placing it in the top 62%.
Is Motion Technology Electric & Machinery Co's Operating Margin % too high?
Motion Technology Electric & Machinery Co's current Operating Margin % of 9.13% is near median its 10-year median of 8.80. Over the past 10 years, this metric has ranged from a low of 1.81 to a high of 9.16. The Industrial Products industry median Operating Margin % is 6.67. Motion Technology Electric & Machinery Co's value of 9.13% is 36.9% above this industry median. Based on the distribution chart, Motion Technology Electric & Machinery Co ranks #1888 out of 3045 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Motion Technology Electric & Machinery Co has a GF Score™ of 48/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Motion Technology Electric & Machinery Co's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Motion Technology Electric & Machinery Co ranks #1888 out of 3045 companies for Operating Margin %. This places Motion Technology Electric & Machinery Co in the lower half of its industry. The industry median Operating Margin % is 6.67. Motion Technology Electric & Machinery Co's value of 9.13% is 36.9% above this benchmark. Historically, Motion Technology Electric & Machinery Co's own Operating Margin % has ranged from 1.81 to 9.16 over the past decade. While the company's 10-year median is 8.80 vs. the industry median of 6.67, Motion Technology Electric & Machinery 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.67, based on 3,045 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. Motion Technology Electric & Machinery Co's current Operating Margin % of 9.13% is 36.9% 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 Motion Technology Electric & Machinery Co and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Motion Technology Electric & Machinery Co's current Operating Margin % is 9.13%, which is near median its own 10-year median of 8.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Motion Technology Electric & Machinery Co stock overvalued right now?
Based on GuruFocus' analysis, Motion Technology Electric & Machinery Co (ROCO:4589) is currently considered Fairly Valued. The stock's GF Value™ is NT$35.33, compared to a current price of NT$34.00 — trading 3.8% below its estimated fair value. The current Operating Margin % is 9.13%, which is near median its 10-year median of 8.80 and 36.9% above the Industrial Products industry median of 6.67. Motion Technology Electric & Machinery Co's overall GF Score™ is 48/100 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 Motion Technology Electric & Machinery Co (ROCO:4589), the current Operating Margin % is 9.13% as of Jun. 2026. 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 Motion Technology Electric & Machinery Co (ROCO:4589) Overvalued in 2026?
Based on GuruFocus' analysis, Motion Technology Electric & Machinery Co stock appears to be undervalued.
The current stock price of NT$34.00 is trading 3.8% below its estimated GF Value™ of NT$35.33.
GuruFocus considers Motion Technology Electric & Machinery Co to be Fairly Valued.
Key valuation signals for ROCO:4589:
Operating Margin %: 9.13% (near median its 10-year median of 8.80)
GF Value™: NT$35.33 vs. price of NT$34.00 (3.8% below fair value)
Industry Position: 36.9% above the Industrial Products median (#1888 of 3045)
No single metric tells the full story. See the ROCO:4589 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Motion Technology Electric & Machinery Co Ltd engages in the design and production of high-precision motors for use in medical appliances, electric wheelchairs, mobility scooters, elevators, and transmission systems. Its products include brush DC motors, brushless DC motors, BLDC drivers, servo motors, induction motors, and reluctance motor control. Geographically, the company generates the majority of its revenue from Asia, followed by Taiwan.
48GF Score
Get the complete analysis for ROCO:4589
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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