Wave Power Technology (ROCO:6895) Operating Margin %: 11.03% (As of Dec. 2025) — 55% Below Median

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Director of Data and Quant Analytics at GuruFocus
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Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

ROCO:6895 Wave Power Technology Inc ROCO:6895
65 GF Score
Price NT$126.50
GF Value NT$301.21
Valuation Possible Value Trap
! 4 Warning Signs
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What is Wave Power Technology Operating Margin %?

Wave Power Technology ROCO:6895 -6.30% 65 Operating Margin % is 11.03% as of Dec. 2025, which is 55% below its 10-year median of 24.33. GuruFocus rates ROCO:6895 with a GF Score™ of 65/100 and a GF Value™ of NT$301.21 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 3,030 Industrial Products companies, Wave Power Technology ranks better than 85.97% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Wave Power Technology's Operating Income for the three months ended in Dec. 2025 was NT$31.1 Mil. Wave Power Technology's Revenue for the three months ended in Dec. 2025 was NT$281.7 Mil. Therefore, Wave Power Technology's Operating Margin % for the quarter that ended in Dec. 2025 was 11.03%.

Warning Sign:

Wave Power Technology Inc operating margin has been in a 5-year decline. The average rate of decline per year is -10.7%.

The historical rank and industry rank for Wave Power Technology's Operating Margin % or its related term are showing as below:

ROCO:6895' s Operating Margin % Range Over the Past 10 Years
Min: 9.53   Med: 24.33   Max: 32.44
Current: 16.57


ROCO:6895's Operating Margin % is ranked better than
85.97% of 3030 companies
in the Industrial Products industry
Industry Median: 6.51 vs ROCO:6895: 16.57

Wave Power Technology's 5-Year Average Operating Margin % Growth Rate was -10.70% per year.

Wave Power Technology's Operating Income for the three months ended in Dec. 2025 was NT$31.1 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was NT$141.0 Mil.


Wave Power Technology  (ROCO:6895) 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.


Wave Power Technology Operating Margin % Related Terms


Wave Power Technology Operating Margin % Historical Data

* Premium members only.

The historical data trend for Wave Power Technology'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.

Wave Power Technology Operating Margin % Chart

Wave Power Technology Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Margin %
Get a 7-Day Free Trial 30.87 32.44 24.33 22.86 16.57

Wave Power Technology Quarterly Data
Dec18 Dec19 Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 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 Premium Member Only Premium Member Only 29.48 11.02 21.89 20.71 11.03

ROCO:6895 vs VRT, BE: Operating Margin % Comparison

For the Electrical Equipment & Parts subindustry, Wave Power Technology'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.


Wave Power Technology Operating Margin % vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Wave Power Technology's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Wave Power Technology's Operating Margin % falls into.


ROCO:6895
65GF Score
Wave Power Technology Inc ROCO:6895
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Wave Power Technology 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.

Wave Power Technology'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 )
=140.979 / 850.772
=16.57 %

Wave Power Technology'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 )
=31.073 / 281.664
=11.03 %

* 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 11.03% mean?
Wave Power Technology (ROCO:6895) has a Operating Margin % of 11.03% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Wave Power Technology and its competitors. This is 55% below median its historical median of 24.33. Over the past decade, Wave Power Technology's Operating Margin % has ranged from 9.53 to 32.44. According to the industry distribution chart, Wave Power Technology ranks #425 out of 3030 companies in the Industrial Products industry, placing it in the top 14%.
Is Wave Power Technology's Operating Margin % too high?
Wave Power Technology's current Operating Margin % of 11.03% is 55% below median its 10-year median of 24.33. Over the past 10 years, this metric has ranged from a low of 9.53 to a high of 32.44. The Industrial Products industry median Operating Margin % is 6.51. Wave Power Technology's value of 11.03% is 69.4% above this industry median. Based on the distribution chart, Wave Power Technology ranks #425 out of 3030 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Wave Power Technology has a GF Score™ of 65/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wave Power Technology's Operating Margin % compare to VRT and BE?
According to the Industrial Products industry distribution chart, Wave Power Technology ranks #425 out of 3030 companies for Operating Margin %. This places Wave Power Technology in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.51. Wave Power Technology's value of 11.03% is 69.4% above this benchmark. Historically, Wave Power Technology's own Operating Margin % has ranged from 9.53 to 32.44 over the past decade. While the company's 10-year median is 24.33 vs. the industry median of 6.51, Wave Power Technology 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 an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.51, based on 3,030 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. Wave Power Technology's current Operating Margin % of 11.03% is 69.4% 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 Wave Power Technology and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wave Power Technology's current Operating Margin % is 11.03%, which is 55% below median its own 10-year median of 24.33. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wave Power Technology stock overvalued right now?
Based on GuruFocus' analysis, Wave Power Technology (ROCO:6895) is currently considered Possible Value Trap. The stock's GF Value™ is NT$301.21, compared to a current price of NT$126.50 — trading 58% below its estimated fair value. The current Operating Margin % is 11.03%, which is 55% below median its 10-year median of 24.33 and 69.4% above the Industrial Products industry median of 6.51. Wave Power Technology's overall GF Score™ is 65/100 with 4 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 Wave Power Technology (ROCO:6895), the current Operating Margin % is 11.03% 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 Wave Power Technology (ROCO:6895) Overvalued in 2026?

Based on GuruFocus' analysis, Wave Power Technology stock appears to be undervalued. The current stock price of NT$126.50 is trading 58% below its estimated GF Value™ of NT$301.21. GuruFocus considers Wave Power Technology to be Possible Value Trap.

Key valuation signals for ROCO:6895:

  • Operating Margin %: 11.03% (55% below median its 10-year median of 24.33)
  • GF Value™: NT$301.21 vs. price of NT$126.50 (58% below fair value)
  • GF Score™: 65/100 with 4 warning signs
  • Industry Position: 69.4% above the Industrial Products median (#425 of 3030)

No single metric tells the full story. See the ROCO:6895 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Wave Power Technology Business Description

Address No. 31, Lane 598, Zhongzheng Road, Miaoli County, Toufen City, TWN, 35151
Wave Power Technology Inc manufactures and distributes electrical power equipment. Its products are based on proprietary 4-H technology associated with high power, frequency, voltage, and vacuum. Its product portfolio comprises of Microwave Generator, Industrial Magnetron, Variable Capacitor, Feedthrough, Vacuum View Port, High-voltage Break-off Section, Magnet, Heater, and Hermetic Sealing.
65GF Score

Get the complete analysis for ROCO:6895

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

NT$126.50
Price
NT$301.21
GF Value