M-Power Information CoROCO:6874 63 Operating Margin % is 9.16% as of Dec. 2025, which is 27% above its 10-year median of 7.20. GuruFocus rates ROCO:6874 with a GF Score™ of 63/100 and a GF Value™ of NT$68.35 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 2,817 Software companies, M-Power Information Co ranks better than 60.88% on this metric.
M-Power Information Co (ROCO:6874) 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.
M-Power Information Co Operating Margin % Related Terms
M-Power Information Co Operating Margin % Historical Data
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The historical data trend for M-Power Information 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:6874 vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, M-Power Information 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.
M-Power Information Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, M-Power Information Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where M-Power Information Co's Operating Margin % falls into.
M-Power Information 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.
M-Power Information 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.
M-Power Information Co (ROCO:6874) has a Operating Margin % of 9.16% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on M-Power Information Co and its competitors. This is 27% above median its historical median of 7.20. Over the past decade, M-Power Information Co's Operating Margin % has ranged from 7.02 to 8.74. According to the industry distribution chart, M-Power Information Co ranks #1102 out of 2817 companies in the Software industry, placing it in the top 39.1%.
Is M-Power Information Co's Operating Margin % too high?
M-Power Information Co's current Operating Margin % of 9.16% is 27% above median its 10-year median of 7.20. Over the past 10 years, this metric has ranged from a low of 7.02 to a high of 8.74. The Software industry median Operating Margin % is 3.81. M-Power Information Co's value of 9.16% is 140.4% above this industry median. Based on the distribution chart, M-Power Information Co ranks #1102 out of 2817 companies in the Software industry, which is above the industry midpoint. Overall, M-Power Information Co has a GF Score™ of 63/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does M-Power Information Co's Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, M-Power Information Co ranks #1102 out of 2817 companies for Operating Margin %. This puts M-Power Information Co in the upper half of its industry. The industry median Operating Margin % is 3.81. M-Power Information Co's value of 9.16% is 140.4% above this benchmark. Historically, M-Power Information Co's own Operating Margin % has ranged from 7.02 to 8.74 over the past decade. While the company's 10-year median is 7.20 vs. the industry median of 3.81, M-Power Information 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 Software company?
The median Operating Margin % among Software companies is 3.81, based on 2,817 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. M-Power Information Co's current Operating Margin % of 9.16% is 140.4% 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 M-Power Information Co and its competitors. For the Software industry, the median Operating Margin % is 3.81 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. M-Power Information Co's current Operating Margin % is 9.16%, which is 27% above median its own 10-year median of 7.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is M-Power Information Co stock overvalued right now?
Based on GuruFocus' analysis, M-Power Information Co (ROCO:6874) is currently considered Modestly Overvalued. The stock's GF Value™ is NT$68.35, compared to a current price of NT$83.30 — trading 21.9% above its estimated fair value. The current Operating Margin % is 9.16%, which is 27% above median its 10-year median of 7.20 and 140.4% above the Software industry median of 3.81. M-Power Information Co's overall GF Score™ is 63/100 with 8 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 M-Power Information Co (ROCO:6874), the current Operating Margin % is 9.16% 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 M-Power Information Co (ROCO:6874) Overvalued in 2026?
Based on GuruFocus' analysis, M-Power Information Co stock appears to be overvalued.
The current stock price of NT$83.30 is trading 21.9% above its estimated GF Value™ of NT$68.35.
GuruFocus considers M-Power Information Co to be Modestly Overvalued.
Key valuation signals for ROCO:6874:
Operating Margin %: 9.16% (27% above median its 10-year median of 7.20)
GF Value™: NT$68.35 vs. price of NT$83.30 (21.9% above fair value)
Industry Position: 140.4% above the Software median (#1102 of 2817)
No single metric tells the full story. See the ROCO:6874 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
M-Power Information Co Ltd primary business activities include the wholesale and retail of information software, as well as the provision of professional consulting, educational training, and technical services. The company's products are CarbonKeeper, EZSO, EZPI, Weblogic, Oracle Database, Oracle Cloud Infrastructure, Toad for Oracle, Foglight for Database, InTrust, ApexSQL, Enterprise Reporter, ChangeAuditor, LiteSpeed for SQL Server, Security Explorer, SharePlex, Sybase Adaptive Server Enterprise, SAP Data Service, PowerDesigner, Identity Manager, PowerServer Mobile, PowerBuilder, AppDynamics, INSTANA, etc. The Company is classified as a single reportable segment. The company has presence in Taiwan and Other countries. The company generates majority of revenue from Taiwan.
63GF Score
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