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Max Echo TechnologyROCO:5228 -4.48%40 Operating Margin % is 16.77% as of Dec. 2025, which is 1425% above its 10-year median of 1.10. GuruFocus rates ROCO:5228 with a GF Score™ of 40/100 and a GF Value™ of NT$21.29 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 2,476 Hardware companies, Max Echo Technology ranks worse than 71.85% on this metric.
Max Echo Technology Corp had lost money in 92% of the time over the past 12quarters.
Max Echo Technology (ROCO:5228) 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.
Max Echo Technology Operating Margin % Related Terms
Max Echo Technology Operating Margin % Historical Data
* Premium members only.
The historical data trend for Max Echo Technology'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:5228 vs APH, GLW: Operating Margin % Comparison
For the Electronic Components subindustry, Max Echo Technology'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.
Max Echo Technology Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Max Echo Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Max Echo Technology's Operating Margin % falls into.
Max Echo Technology 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.
Max Echo Technology'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.
Max Echo Technology (ROCO:5228) has a Operating Margin % of 16.77% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Max Echo Technology and its competitors. This is 1425% above median its historical median of 1.10. According to the industry distribution chart, Max Echo Technology ranks #1779 out of 2476 companies in the Hardware industry, placing it in the top 71.8%.
Is Max Echo Technology's Operating Margin % too high?
Max Echo Technology's current Operating Margin % of 16.77% is 1425% above median its 10-year median of 1.10. The Hardware industry median Operating Margin % is 3.81. Max Echo Technology's value of 16.77% is 340.2% above this industry median. Based on the distribution chart, Max Echo Technology ranks #1779 out of 2476 companies in the Hardware industry, which is below the industry midpoint. Overall, Max Echo Technology has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Max Echo Technology's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Max Echo Technology ranks #1779 out of 2476 companies for Operating Margin %. This places Max Echo Technology in the lower half of its industry. The industry median Operating Margin % is 3.81. Max Echo Technology's value of 16.77% is 340.2% above this benchmark. While the company's 10-year median is 1.10 vs. the industry median of 3.81, Max Echo Technology 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 3.81, based on 2,476 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. Max Echo Technology's current Operating Margin % of 16.77% is 340.2% 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 Max Echo Technology and its competitors. For the Hardware industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Max Echo Technology's current Operating Margin % is 16.77%, which is 1425% above median its own 10-year median of 1.10. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Max Echo Technology stock overvalued right now?
Based on GuruFocus' analysis, Max Echo Technology (ROCO:5228) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$21.29, compared to a current price of NT$41.60 — trading 95.4% above its estimated fair value. The current Operating Margin % is 16.77%, which is 1425% above median its 10-year median of 1.10 and 340.2% above the Hardware industry median of 3.81. Max Echo Technology's overall GF Score™ is 40/100 with 6 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 Max Echo Technology (ROCO:5228), the current Operating Margin % is 16.77% 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 Max Echo Technology (ROCO:5228) Overvalued in 2026?
Based on GuruFocus' analysis, Max Echo Technology stock appears to be overvalued.
The current stock price of NT$41.60 is trading 95.4% above its estimated GF Value™ of NT$21.29.
GuruFocus considers Max Echo Technology to be Significantly Overvalued.
Key valuation signals for ROCO:5228:
Operating Margin %: 16.77% (1425% above median its 10-year median of 1.10)
GF Value™: NT$21.29 vs. price of NT$41.60 (95.4% above fair value)
Industry Position: 340.2% above the Hardware median (#1779 of 2476)
No single metric tells the full story. See the ROCO:5228 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Max Echo Technology Corp is a Taiwan-based company that manufactures and sells SMD multilayer inductors and beads. Its products include multilayer GHz high-frequency ferrite chip beads, multilayer ferrite chip beads, multilayer balun transformers, and multilayer power inductors.
40GF Score
Get the complete analysis for ROCO:5228
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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