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Lex Computech CoROCO:7562 +0.42%21 Operating Margin % is 11.02% as of Dec. 2025, which is 6% above its 10-year median of 10.40. GuruFocus rates ROCO:7562 with a GF Score™ of 21/100. The stock has 1 warning sign investors should review. Among 2,475 Hardware companies, Lex Computech Co ranks better than 82.75% on this metric.
Lex Computech Co (ROCO:7562) 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.
Lex Computech Co Operating Margin % Related Terms
Lex Computech Co Operating Margin % Historical Data
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The historical data trend for Lex Computech 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:7562 vs DELL, ANET, SNDK: Operating Margin % Comparison
For the Computer Hardware subindustry, Lex Computech 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.
Lex Computech Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Lex Computech Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Lex Computech Co'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.
Lex Computech 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.
Lex Computech Co (ROCO:7562) has a Operating Margin % of 11.02% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Lex Computech Co and its competitors. This is near median its historical median of 10.40. Over the past decade, Lex Computech Co's Operating Margin % has ranged from 1.13 to 13.18. According to the industry distribution chart, Lex Computech Co ranks #427 out of 2475 companies in the Hardware industry, placing it in the top 17.3%.
Is Lex Computech Co's Operating Margin % too high?
Lex Computech Co's current Operating Margin % of 11.02% is near median its 10-year median of 10.40. Over the past 10 years, this metric has ranged from a low of 1.13 to a high of 13.18. The Hardware industry median Operating Margin % is 3.89. Lex Computech Co's value of 11.02% is 183.3% above this industry median. Based on the distribution chart, Lex Computech Co ranks #427 out of 2475 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Lex Computech Co has a GF Score™ of 21/100, reflecting its overall financial health beyond just this single metric.
How does Lex Computech Co's Operating Margin % compare to DELL and ANET?
According to the Hardware industry distribution chart, Lex Computech Co ranks #427 out of 2475 companies for Operating Margin %. This places Lex Computech Co in the top 17% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.89. Lex Computech Co's value of 11.02% is 183.3% above this benchmark. Historically, Lex Computech Co's own Operating Margin % has ranged from 1.13 to 13.18 over the past decade. While the company's 10-year median is 10.40 vs. the industry median of 3.89, Lex Computech 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 3.89, based on 2,475 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. Lex Computech Co's current Operating Margin % of 11.02% is 183.3% 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 Lex Computech Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.89 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lex Computech Co's current Operating Margin % is 11.02%, which is near median its own 10-year median of 10.40. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lex Computech Co stock overvalued right now?
Lex Computech Co (ROCO:7562) has a current Operating Margin % of 11.02%. The current Operating Margin % is 11.02%, which is near median its 10-year median of 10.40 and 183.3% above the Hardware industry median of 3.89. Lex Computech Co's overall GF Score™ is 21/100 with 1 warning sign 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 Lex Computech Co (ROCO:7562), the current Operating Margin % is 11.02% 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.
Lex Computech Co Ltd is an industrial computer manufacturer. The company is engaged in designing and manufacturing motherboards, fanless embedded systems, rugged panel PCs, automation controllers, network appliances, and other AI solutions. The company has innovated electronics, layout, hardware mechanical, BIOS, software, and firmware technology, in-house manufacturing, and after-sales service to robust embedded solutions and various application-oriented OEM/ODM services.
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