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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.
Kuen Chaang Uppertech Operating Margin % Related Terms
Kuen Chaang Uppertech Operating Margin % Historical Data
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The historical data trend for Kuen Chaang Uppertech'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:6265 vs SNX, ARW, AVT: Operating Margin % Comparison
For the Electronics & Computer Distribution subindustry, Kuen Chaang Uppertech'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.
Kuen Chaang Uppertech Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Kuen Chaang Uppertech's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Kuen Chaang Uppertech's Operating Margin % falls into.
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.
Kuen Chaang Uppertech'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.
Kuen Chaang Uppertech (ROCO:6265) has a Operating Margin % of 20.49% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Kuen Chaang Uppertech and its competitors. According to the industry distribution chart, Kuen Chaang Uppertech ranks #513 out of 2477 companies in the Hardware industry, placing it in the top 20.7%.
Is Kuen Chaang Uppertech's Operating Margin % too high?
Kuen Chaang Uppertech's current Operating Margin % is 20.49%. The Hardware industry median Operating Margin % is 3.80. Kuen Chaang Uppertech's value of 20.49% is 439.2% above this industry median. Based on the distribution chart, Kuen Chaang Uppertech ranks #513 out of 2477 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Kuen Chaang Uppertech has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Kuen Chaang Uppertech's Operating Margin % compare to SNX and ARW?
According to the Hardware industry distribution chart, Kuen Chaang Uppertech ranks #513 out of 2477 companies for Operating Margin %. This places Kuen Chaang Uppertech in the top 21% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Kuen Chaang Uppertech's value of 20.49% is 439.2% above this benchmark. 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 3.80, based on 2,477 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. Kuen Chaang Uppertech's current Operating Margin % of 20.49% is 439.2% 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 Kuen Chaang Uppertech and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kuen Chaang Uppertech's current Operating Margin % is 20.49%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kuen Chaang Uppertech stock overvalued right now?
Based on GuruFocus' analysis, Kuen Chaang Uppertech (ROCO:6265) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$15.22, compared to a current price of NT$51.70 — trading 239.7% above its estimated fair value. The current Operating Margin % is 20.49% and 439.2% above the Hardware industry median of 3.80. Kuen Chaang Uppertech's overall GF Score™ is 40/100 with 3 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 Kuen Chaang Uppertech (ROCO:6265), the current Operating Margin % is 20.49% 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 Kuen Chaang Uppertech (ROCO:6265) Overvalued in 2026?
Based on GuruFocus' analysis, Kuen Chaang Uppertech stock appears to be overvalued.
The current stock price of NT$51.70 is trading 239.7% above its estimated GF Value™ of NT$15.22.
GuruFocus considers Kuen Chaang Uppertech to be Significantly Overvalued.
Key valuation signals for ROCO:6265:
Operating Margin %: 20.49%
GF Value™: NT$15.22 vs. price of NT$51.70 (239.7% above fair value)
Industry Position: 439.2% above the Hardware median (#513 of 2477)
No single metric tells the full story. See the ROCO:6265 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kuen Chaang Uppertech Corp is a Taiwan based company engage in the wholesale and retail of electronic components and the sales of dietary supplements. It is engaged in in two segments: Semiconductor segment and Other segments. Key revenue is generated from Semiconductor segment.
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