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Padauk Technology CoROCO:6716 -5.11%87 Operating Margin % is 7.33% as of Dec. 2025, which is 61% below its 10-year median of 18.77. GuruFocus rates ROCO:6716 with a GF Score™ of 87/100 and a GF Value™ of NT$95.45 (Fairly Valued). The stock has 11 warning signs investors should review. Among 1,023 Semiconductors companies, Padauk Technology Co ranks worse than 50.05% on this metric.
Padauk Technology Co Ltd has recorded a loss in operating income at least once over the past 3 years.
Padauk Technology Co (ROCO:6716) 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.
Padauk Technology Co Operating Margin % Related Terms
Padauk Technology Co Operating Margin % Historical Data
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The historical data trend for Padauk Technology Co'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:6716 vs NVDA, AVGO, MU: Operating Margin % Comparison
For the Semiconductors subindustry, Padauk Technology 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.
Padauk Technology Co Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Padauk Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Padauk Technology Co's Operating Margin % falls into.
Padauk Technology 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.
Padauk Technology Co'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.
Padauk Technology Co (ROCO:6716) has a Operating Margin % of 7.33% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Padauk Technology Co and its competitors. This is 61% below median its historical median of 18.77. Over the past decade, Padauk Technology Co's Operating Margin % has ranged from 5.33 to 35.39. According to the industry distribution chart, Padauk Technology Co ranks #512 out of 1023 companies in the Semiconductors industry, placing it in the top 50%.
Is Padauk Technology Co's Operating Margin % too high?
Padauk Technology Co's current Operating Margin % of 7.33% is 61% below median its 10-year median of 18.77. Over the past 10 years, this metric has ranged from a low of 5.33 to a high of 35.39. The Semiconductors industry median Operating Margin % is 5.33. Padauk Technology Co's value of 7.33% is 37.5% above this industry median. Based on the distribution chart, Padauk Technology Co ranks #512 out of 1023 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Padauk Technology Co has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Padauk Technology Co's Operating Margin % compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Padauk Technology Co ranks #512 out of 1023 companies for Operating Margin %. This puts Padauk Technology Co in the upper half of its industry. The industry median Operating Margin % is 5.33. Padauk Technology Co's value of 7.33% is 37.5% above this benchmark. Historically, Padauk Technology Co's own Operating Margin % has ranged from 5.33 to 35.39 over the past decade. While the company's 10-year median is 18.77 vs. the industry median of 5.33, Padauk Technology 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.33, 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. Padauk Technology Co's current Operating Margin % of 7.33% is 37.5% 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 Padauk Technology Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Padauk Technology Co's current Operating Margin % is 7.33%, which is 61% below median its own 10-year median of 18.77. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Padauk Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Padauk Technology Co (ROCO:6716) is currently considered Fairly Valued. The stock's GF Value™ is NT$95.45, compared to a current price of NT$89.10 — trading 6.7% below its estimated fair value. The current Operating Margin % is 7.33%, which is 61% below median its 10-year median of 18.77 and 37.5% above the Semiconductors industry median of 5.33. Padauk Technology Co's overall GF Score™ is 87/100 with 11 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 Padauk Technology Co (ROCO:6716), the current Operating Margin % is 7.33% 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 Padauk Technology Co (ROCO:6716) Overvalued in 2026?
Based on GuruFocus' analysis, Padauk Technology Co stock appears to be undervalued.
The current stock price of NT$89.10 is trading 6.7% below its estimated GF Value™ of NT$95.45.
GuruFocus considers Padauk Technology Co to be Fairly Valued.
Key valuation signals for ROCO:6716:
Operating Margin %: 7.33% (61% below median its 10-year median of 18.77)
GF Value™: NT$95.45 vs. price of NT$89.10 (6.7% below fair value)
Industry Position: 37.5% above the Semiconductors median (#512 of 1023)
No single metric tells the full story. See the ROCO:6716 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Padauk Technology Co Ltd is a Taiwan-based company. The company is engaged in electronics components manufacturing, retail sales of electronic materials, product designing, and international trade. The company's revenue is generated from the product design, R&D, manufacturing, and sales of IC products. The company generates all of its revenue from the sale of its products. Geographically, the company derives the majority of its revenue from China, followed by Hong Kong, then Taiwan.
87GF Score
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