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Powertip ImageROCO:6498 -3.04%91 Operating Margin % is 29.99% as of Dec. 2025, which is 47% above its 10-year median of 20.41. GuruFocus rates ROCO:6498 with a GF Score™ of 91/100 and a GF Value™ of NT$108.79 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 2,477 Hardware companies, Powertip Image ranks better than 97.54% on this metric.
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.
Powertip Image Operating Margin % Related Terms
Powertip Image Operating Margin % Historical Data
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The historical data trend for Powertip Image'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:6498 vs APH, GLW: Operating Margin % Comparison
For the Electronic Components subindustry, Powertip Image'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.
Powertip Image Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Powertip Image's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Powertip Image'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.
Powertip Image'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.
Powertip Image (ROCO:6498) has a Operating Margin % of 29.99% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Powertip Image and its competitors. This is 47% above median its historical median of 20.41. According to the industry distribution chart, Powertip Image ranks #61 out of 2477 companies in the Hardware industry, placing it in the top 2.5%.
Is Powertip Image's Operating Margin % too high?
Powertip Image's current Operating Margin % of 29.99% is 47% above median its 10-year median of 20.41. The Hardware industry median Operating Margin % is 3.80. Powertip Image's value of 29.99% is 689.2% above this industry median. Based on the distribution chart, Powertip Image ranks #61 out of 2477 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Powertip Image has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Powertip Image's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Powertip Image ranks #61 out of 2477 companies for Operating Margin %. This places Powertip Image in the top 3% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Powertip Image's value of 29.99% is 689.2% above this benchmark. While the company's 10-year median is 20.41 vs. the industry median of 3.80, Powertip Image 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 3.80, 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. Powertip Image's current Operating Margin % of 29.99% is 689.2% 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 Powertip Image 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. Powertip Image's current Operating Margin % is 29.99%, which is 47% above median its own 10-year median of 20.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Powertip Image stock overvalued right now?
Based on GuruFocus' analysis, Powertip Image (ROCO:6498) is currently considered Modestly Undervalued. The stock's GF Value™ is NT$108.79, compared to a current price of NT$86.20 — trading 20.8% below its estimated fair value. The current Operating Margin % is 29.99%, which is 47% above median its 10-year median of 20.41 and 689.2% above the Hardware industry median of 3.80. Powertip Image's overall GF Score™ is 91/100 with 2 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 Powertip Image (ROCO:6498), the current Operating Margin % is 29.99% 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 Powertip Image (ROCO:6498) Overvalued in 2026?
Based on GuruFocus' analysis, Powertip Image stock appears to be undervalued.
The current stock price of NT$86.20 is trading 20.8% below its estimated GF Value™ of NT$108.79.
GuruFocus considers Powertip Image to be Modestly Undervalued.
Key valuation signals for ROCO:6498:
Operating Margin %: 29.99% (47% above median its 10-year median of 20.41)
GF Value™: NT$108.79 vs. price of NT$86.20 (20.8% below fair value)
Industry Position: 689.2% above the Hardware median (#61 of 2477)
No single metric tells the full story. See the ROCO:6498 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Powertip Image Corp is a manufacturer of small to mid-size full-color TFT and monochrome displays as well as resistive and capacitive touch panels. The company's product lines include Embedded solutions, Evaluation board, EM Touch, VATN/PBT LCD Modules and Graphic LCD Modules among others. It earns revenue from sales of lens products.
91GF Score
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Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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