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Lihtai Construction & Development CoROCO:5520 98 Operating Margin % is 13.06% as of Dec. 2025, which is 7% below its 10-year median of 14.01. GuruFocus rates ROCO:5520 with a GF Score™ of 98/100 and a GF Value™ of NT$87.40 (Fairly Valued). The stock has 1 warning sign investors should review. Among 403 Building Materials companies, Lihtai Construction & Development Co ranks better than 82.13% on this metric.
ROCO:5520'
s Operating Margin % Range Over the Past 10 Years
Min: 1.37 Med: 14.01 Max: 17.44
Current: 17.44
ROCO:5520's Operating Margin % is ranked better than 82.13% of 403
companies
in the Building Materials industry
Industry Median: 7.62
vs ROCO:5520: 17.44
Lihtai Construction & Development Co (ROCO:5520) 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.
Lihtai Construction & Development Co Operating Margin % Related Terms
Lihtai Construction & Development 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.
Lihtai Construction & Development Co Operating Margin % Chart
ROCO:5520 vs CRH, VMC, MLM: Operating Margin % Comparison
For the Building Materials subindustry, Lihtai Construction & Development 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.
Lihtai Construction & Development Co Operating Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, Lihtai Construction & Development Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lihtai Construction & Development Co's Operating Margin % falls into.
Lihtai Construction & Development 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.
Lihtai Construction & Development Co (ROCO:5520) has a Operating Margin % of 13.06% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lihtai Construction & Development Co and its competitors. This is near median its historical median of 14.01. Over the past decade, Lihtai Construction & Development Co's Operating Margin % has ranged from 1.37 to 17.44. According to the industry distribution chart, Lihtai Construction & Development Co ranks #72 out of 403 companies in the Building Materials industry, placing it in the top 17.9%.
Is Lihtai Construction & Development Co's Operating Margin % too high?
Lihtai Construction & Development Co's current Operating Margin % of 13.06% is near median its 10-year median of 14.01. Over the past 10 years, this metric has ranged from a low of 1.37 to a high of 17.44. The Building Materials industry median Operating Margin % is 7.62. Lihtai Construction & Development Co's value of 13.06% is 71.4% above this industry median. Based on the distribution chart, Lihtai Construction & Development Co ranks #72 out of 403 companies in the Building Materials industry, which is in the top quartile — a strong position relative to peers. Overall, Lihtai Construction & Development Co has a GF Score™ of 98/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Lihtai Construction & Development Co's Operating Margin % compare to CRH and VMC?
According to the Building Materials industry distribution chart, Lihtai Construction & Development Co ranks #72 out of 403 companies for Operating Margin %. This places Lihtai Construction & Development Co in the top 18% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.62. Lihtai Construction & Development Co's value of 13.06% is 71.4% above this benchmark. Historically, Lihtai Construction & Development Co's own Operating Margin % has ranged from 1.37 to 17.44 over the past decade. While the company's 10-year median is 14.01 vs. the industry median of 7.62, Lihtai Construction & Development 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 Building Materials company?
The median Operating Margin % among Building Materials companies is 7.62, based on 403 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. Lihtai Construction & Development Co's current Operating Margin % of 13.06% is 71.4% 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 Lihtai Construction & Development Co and its competitors. For the Building Materials industry, the median Operating Margin % is 7.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lihtai Construction & Development Co's current Operating Margin % is 13.06%, which is near median its own 10-year median of 14.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lihtai Construction & Development Co stock overvalued right now?
Based on GuruFocus' analysis, Lihtai Construction & Development Co (ROCO:5520) is currently considered Fairly Valued. The stock's GF Value™ is NT$87.40, compared to a current price of NT$82.30 — trading 5.8% below its estimated fair value. The current Operating Margin % is 13.06%, which is near median its 10-year median of 14.01 and 71.4% above the Building Materials industry median of 7.62. Lihtai Construction & Development Co's overall GF Score™ is 98/100 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 Lihtai Construction & Development Co (ROCO:5520), the current Operating Margin % is 13.06% 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 Lihtai Construction & Development Co (ROCO:5520) Overvalued in 2026?
Based on GuruFocus' analysis, Lihtai Construction & Development Co stock appears to be undervalued.
The current stock price of NT$82.30 is trading 5.8% below its estimated GF Value™ of NT$87.40.
GuruFocus considers Lihtai Construction & Development Co to be Fairly Valued.
Key valuation signals for ROCO:5520:
Operating Margin %: 13.06% (near median its 10-year median of 14.01)
GF Value™: NT$87.40 vs. price of NT$82.30 (5.8% below fair value)
Industry Position: 71.4% above the Building Materials median (#72 of 403)
No single metric tells the full story. See the ROCO:5520 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lihtai Construction & Development Co Business Description
Lihtai Construction & Development Co Ltd is engaged in the manufacture and distribution of pre-mix concrete and other concrete products in Taiwan. Its products are used for various properties, roads, bridges, and other construction projects.
98GF Score
Get the complete analysis for ROCO:5520
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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