Vanguard International Semiconductor (ROCO:5347) 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.
Vanguard International Semiconductor Operating Margin % Related Terms
Vanguard International Semiconductor 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.
Vanguard International Semiconductor Operating Margin % Chart
ROCO:5347 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Vanguard International Semiconductor'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.
Vanguard International Semiconductor Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Vanguard International Semiconductor's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vanguard International Semiconductor's Operating Margin % falls into.
Vanguard International Semiconductor 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.
Vanguard International Semiconductor (ROCO:5347) has a Operating Margin % of 14.35% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Vanguard International Semiconductor and its competitors. This is 38% below median its historical median of 23.00. Over the past decade, Vanguard International Semiconductor's Operating Margin % has ranged from 15.09 to 34.45. According to the industry distribution chart, Vanguard International Semiconductor ranks #256 out of 1023 companies in the Semiconductors industry, placing it in the top 25%.
Is Vanguard International Semiconductor's Operating Margin % too high?
Vanguard International Semiconductor's current Operating Margin % of 14.35% is 38% below median its 10-year median of 23.00. Over the past 10 years, this metric has ranged from a low of 15.09 to a high of 34.45. The Semiconductors industry median Operating Margin % is 5.24. Vanguard International Semiconductor's value of 14.35% is 173.9% above this industry median. Based on the distribution chart, Vanguard International Semiconductor ranks #256 out of 1023 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Vanguard International Semiconductor has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Vanguard International Semiconductor's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Vanguard International Semiconductor ranks #256 out of 1023 companies for Operating Margin %. This places Vanguard International Semiconductor in the top 25% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.24. Vanguard International Semiconductor's value of 14.35% is 173.9% above this benchmark. Historically, Vanguard International Semiconductor's own Operating Margin % has ranged from 15.09 to 34.45 over the past decade. While the company's 10-year median is 23.00 vs. the industry median of 5.24, Vanguard International Semiconductor 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.24, based on 1,023 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. Vanguard International Semiconductor's current Operating Margin % of 14.35% is 173.9% 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 Vanguard International Semiconductor and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vanguard International Semiconductor's current Operating Margin % is 14.35%, which is 38% below median its own 10-year median of 23.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vanguard International Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, Vanguard International Semiconductor (ROCO:5347) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$99.10, compared to a current price of NT$220.00 — trading 122% above its estimated fair value. The current Operating Margin % is 14.35%, which is 38% below median its 10-year median of 23.00 and 173.9% above the Semiconductors industry median of 5.24. Vanguard International Semiconductor's overall GF Score™ is 75/100 with 12 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 Vanguard International Semiconductor (ROCO:5347), the current Operating Margin % is 14.35% 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 Vanguard International Semiconductor (ROCO:5347) Overvalued in 2026?
Based on GuruFocus' analysis, Vanguard International Semiconductor stock appears to be overvalued.
The current stock price of NT$220.00 is trading 122% above its estimated GF Value™ of NT$99.10.
GuruFocus considers Vanguard International Semiconductor to be Significantly Overvalued.
Key valuation signals for ROCO:5347:
Operating Margin %: 14.35% (38% below median its 10-year median of 23.00)
GF Value™: NT$99.10 vs. price of NT$220.00 (122% above fair value)
Industry Position: 173.9% above the Semiconductors median (#256 of 1023)
No single metric tells the full story. See the ROCO:5347 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vanguard International Semiconductor Business Description
Vanguard International Semiconductor Corp is engaged mainly in the manufacturing, selling, packaging, testing and computer-aided design of integrated circuits and other semiconductor devices and the manufacturing of masks. Its services, manufacturing, and technology include BCD/UHV/SOI, Discrete, HV, Sensors/MEMS, eFlash, GaN, Fab Capacity, Intelligent Manufacturing and Management, Services, MPW, Program, Mask Services, Backend Services, Automotive, Design Support. Its Design Services include Libraries & IP Geographically, it derives revenue from Asia and America.
75GF Score
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