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Taiwan Special ChemicalsROCO:4772 63 Operating Margin % is 40.24% as of Mar. 2026, which is 19% above its 10-year median of 33.94. GuruFocus rates ROCO:4772 with a GF Score™ of 63/100 and a GF Value™ of NT$679.24 (Possible Value Trap). The stock has 1 warning sign investors should review. Among 1,577 Chemicals companies, Taiwan Special Chemicals ranks better than 99.11% on this metric.
Taiwan Special Chemicals (ROCO:4772) 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.
Taiwan Special Chemicals Operating Margin % Related Terms
Taiwan Special Chemicals 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.
ROCO:4772 vs LIN, SHW, ECL: Operating Margin % Comparison
For the Specialty Chemicals subindustry, Taiwan Special Chemicals'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.
Taiwan Special Chemicals Operating Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Taiwan Special Chemicals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Taiwan Special Chemicals's Operating Margin % falls into.
Taiwan Special Chemicals 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.
Taiwan Special Chemicals'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.
Taiwan Special Chemicals (ROCO:4772) has a Operating Margin % of 40.24% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Taiwan Special Chemicals and its competitors. This is 19% above median its historical median of 33.94. According to the industry distribution chart, Taiwan Special Chemicals ranks #14 out of 1577 companies in the Chemicals industry, placing it in the top 0.90000000000001%.
Is Taiwan Special Chemicals' Operating Margin % too high?
Taiwan Special Chemicals' current Operating Margin % of 40.24% is 19% above median its 10-year median of 33.94. The Chemicals industry median Operating Margin % is 6.03. Taiwan Special Chemicals' value of 40.24% is 567.3% above this industry median. Based on the distribution chart, Taiwan Special Chemicals ranks #14 out of 1577 companies in the Chemicals industry, which is in the top quartile — a strong position relative to peers. Overall, Taiwan Special Chemicals has a GF Score™ of 63/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Taiwan Special Chemicals' Operating Margin % compare to LIN and SHW?
According to the Chemicals industry distribution chart, Taiwan Special Chemicals ranks #14 out of 1577 companies for Operating Margin %. This places Taiwan Special Chemicals in the top 1% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.03. Taiwan Special Chemicals' value of 40.24% is 567.3% above this benchmark. While the company's 10-year median is 33.94 vs. the industry median of 6.03, Taiwan Special Chemicals 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 Chemicals company?
The median Operating Margin % among Chemicals companies is 6.03, based on 1,577 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. Taiwan Special Chemicals's current Operating Margin % of 40.24% is 567.3% 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 Taiwan Special Chemicals and its competitors. For the Chemicals industry, the median Operating Margin % is 6.03 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Special Chemicals's current Operating Margin % is 40.24%, which is 19% above median its own 10-year median of 33.94. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Special Chemicals stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Special Chemicals (ROCO:4772) is currently considered Possible Value Trap. The stock's GF Value™ is NT$679.24, compared to a current price of NT$270.50 — trading 60.2% below its estimated fair value. The current Operating Margin % is 40.24%, which is 19% above median its 10-year median of 33.94 and 567.3% above the Chemicals industry median of 6.03. Taiwan Special Chemicals' overall GF Score™ is 63/100 with 1 warning sign 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 Taiwan Special Chemicals (ROCO:4772), the current Operating Margin % is 40.24% as of Mar. 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 Taiwan Special Chemicals (ROCO:4772) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Special Chemicals stock appears to be undervalued.
The current stock price of NT$270.50 is trading 60.2% below its estimated GF Value™ of NT$679.24.
GuruFocus considers Taiwan Special Chemicals to be Possible Value Trap.
Key valuation signals for ROCO:4772:
Operating Margin %: 40.24% (19% above median its 10-year median of 33.94)
GF Value™: NT$679.24 vs. price of NT$270.50 (60.2% below fair value)
Industry Position: 567.3% above the Chemicals median (#14 of 1577)
No single metric tells the full story. See the ROCO:4772 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Special Chemicals Corp develops and manufactures semiconductor specialty gases (SEG) and semiconductor chemical materials (SEC), and is engaged in the sale and production of precision chemical materials, as well as the cleaning, maintenance, and refurbishment services for semiconductor equipment and components. It generates maximum revenue from the sale of specialty chemical materials. Geographically, the company generates maximum revenue from Taiwan, followed by other Asian regions, America, Northeast Asia (Japan and Korea), and Europe.
63GF Score
Get the complete analysis for ROCO:4772
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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