Solid Year Co (ROCO:6737) Operating Margin %: 5.22% (As of Dec. 2025) — 30% Below Median

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ROCO:6737 Solid Year Co Ltd ROCO:6737
76 GF Score
Price NT$30.00
GF Value NT$30.40
Valuation Fairly Valued
! 5 Warning Signs
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What is Solid Year Co Operating Margin %?

Solid Year Co ROCO:6737 76 Operating Margin % is 5.22% as of Dec. 2025, which is 30% below its 10-year median of 7.44. GuruFocus rates ROCO:6737 with a GF Score™ of 76/100 and a GF Value™ of NT$30.40 (Fairly Valued). The stock has 5 warning signs investors should review. Among 2,477 Hardware companies, Solid Year Co ranks better than 64.59% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Solid Year Co's Operating Income for the six months ended in Dec. 2025 was NT$68 Mil. Solid Year Co's Revenue for the six months ended in Dec. 2025 was NT$1,300 Mil. Therefore, Solid Year Co's Operating Margin % for the quarter that ended in Dec. 2025 was 5.22%.

Warning Sign:

Solid Year Co Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.8%.

The historical rank and industry rank for Solid Year Co's Operating Margin % or its related term are showing as below:

ROCO:6737' s Operating Margin % Range Over the Past 10 Years
Min: 2.84   Med: 7.44   Max: 12.97
Current: 6.72


ROCO:6737's Operating Margin % is ranked better than
64.59% of 2477 companies
in the Hardware industry
Industry Median: 3.8 vs ROCO:6737: 6.72

Solid Year Co's 5-Year Average Operating Margin % Growth Rate was -1.80% per year.

Solid Year Co's Operating Income for the six months ended in Dec. 2025 was NT$68 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was NT$191 Mil.


Solid Year Co  (ROCO:6737) 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 Nokia’s 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.


Solid Year Co Operating Margin % Related Terms


Solid Year Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Solid Year 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.

Solid Year Co Operating Margin % Chart

Solid Year Co Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.23 7.65 7.78 12.97 6.72

Solid Year Co Semi-Annual Data
Dec16 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24 Jun25 Dec25
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.83 12.47 13.47 7.98 5.22

ROCO:6737 vs SNDK, DELL, STX: Operating Margin % Comparison

For the Computer Hardware subindustry, Solid Year 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.


Solid Year Co Operating Margin % vs Hardware Industry

For the Hardware industry and Technology sector, Solid Year Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Solid Year Co's Operating Margin % falls into.


ROCO:6737
76GF Score
Solid Year Co Ltd ROCO:6737
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Solid Year 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.

Solid Year Co's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (A: Dec. 2025 ) / Revenue (A: Dec. 2025 )
=191.436 / 2849.279
=6.72 %

Solid Year Co's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=67.821 / 1300.051
=5.22 %

* 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.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 5.22% mean?
Solid Year Co (ROCO:6737) has a Operating Margin % of 5.22% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Solid Year Co and its competitors. This is 30% below median its historical median of 7.44. Over the past decade, Solid Year Co's Operating Margin % has ranged from 2.84 to 12.97. According to the industry distribution chart, Solid Year Co ranks #877 out of 2477 companies in the Hardware industry, placing it in the top 35.4%.
Is Solid Year Co's Operating Margin % too high?
Solid Year Co's current Operating Margin % of 5.22% is 30% below median its 10-year median of 7.44. Over the past 10 years, this metric has ranged from a low of 2.84 to a high of 12.97. The Hardware industry median Operating Margin % is 3.80. Solid Year Co's value of 5.22% is 37.4% above this industry median. Based on the distribution chart, Solid Year Co ranks #877 out of 2477 companies in the Hardware industry, which is above the industry midpoint. Overall, Solid Year Co has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Solid Year Co's Operating Margin % compare to SNDK and DELL?
According to the Hardware industry distribution chart, Solid Year Co ranks #877 out of 2477 companies for Operating Margin %. This puts Solid Year Co in the upper half of its industry. The industry median Operating Margin % is 3.80. Solid Year Co's value of 5.22% is 37.4% above this benchmark. Historically, Solid Year Co's own Operating Margin % has ranged from 2.84 to 12.97 over the past decade. While the company's 10-year median is 7.44 vs. the industry median of 3.80, Solid Year 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 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. Solid Year Co's current Operating Margin % of 5.22% is 37.4% 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 Solid Year Co 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. Solid Year Co's current Operating Margin % is 5.22%, which is 30% below median its own 10-year median of 7.44. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Solid Year Co stock overvalued right now?
Based on GuruFocus' analysis, Solid Year Co (ROCO:6737) is currently considered Fairly Valued. The stock's GF Value™ is NT$30.40, compared to a current price of NT$30.00 — trading 1.3% below its estimated fair value. The current Operating Margin % is 5.22%, which is 30% below median its 10-year median of 7.44 and 37.4% above the Hardware industry median of 3.80. Solid Year Co's overall GF Score™ is 76/100 with 5 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 Solid Year Co (ROCO:6737), the current Operating Margin % is 5.22% 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 Solid Year Co (ROCO:6737) Overvalued in 2026?

Based on GuruFocus' analysis, Solid Year Co stock appears to be undervalued. The current stock price of NT$30.00 is trading 1.3% below its estimated GF Value™ of NT$30.40. GuruFocus considers Solid Year Co to be Fairly Valued.

Key valuation signals for ROCO:6737:

  • Operating Margin %: 5.22% (30% below median its 10-year median of 7.44)
  • GF Value™: NT$30.40 vs. price of NT$30.00 (1.3% below fair value)
  • GF Score™: 76/100 with 5 warning signs
  • Industry Position: 37.4% above the Hardware median (#877 of 2477)

No single metric tells the full story. See the ROCO:6737 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Solid Year Co Business Description

Address Xintai 5th Road, 18th Floor - 11, No. 97, Section 1, Xizhi District, New Taipei City, TWN
Solid Year Co Ltd is engaged in the manufacturing, import, and export of various electronic components and computer peripheral equipment. The company's reportable segments are the Manufacturing Service Department and Other departments. The majority of its revenue is generated from the Manufacturing Service Department, which manufactures and sells products like keyboards, network cameras, camera modules, driving recorders, hunting machines, projectors, game controllers, automotive electronics, and in-car multimedia, among others.
76GF Score

Get the complete analysis for ROCO:6737

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

NT$30.00
Price
NT$30.40
GF Value