Yu-Chen System TechnologyROCO:7813 +0.41%17 Operating Margin % is 4.60% as of Dec. 2025, which is 33% above its 10-year median of 3.45. GuruFocus rates ROCO:7813 with a GF Score™ of 17/100. The stock has 4 warning signs investors should review. Among 2,818 Software companies, Yu-Chen System Technology ranks worse than 54.19% on this metric.
Yu-Chen System Technology (ROCO:7813) 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.
Yu-Chen System Technology Operating Margin % Related Terms
Yu-Chen System Technology Operating Margin % Historical Data
* 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.
Yu-Chen System Technology Operating Margin % Chart
ROCO:7813 vs UBER, SHOP, CRM: Operating Margin % Comparison
For the Software - Application subindustry, Yu-Chen System 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.
Yu-Chen System Technology Operating Margin % vs Software Industry
For the Software industry and Technology sector, Yu-Chen System Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Yu-Chen System Technology's Operating Margin % falls into.
Yu-Chen System 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.
Yu-Chen System Technology'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.
Yu-Chen System Technology (ROCO:7813) has a Operating Margin % of 4.60% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Yu-Chen System Technology and its competitors. This is 33% above median its historical median of 3.45. Over the past decade, Yu-Chen System Technology's Operating Margin % has ranged from 2.61 to 9.50. According to the industry distribution chart, Yu-Chen System Technology ranks #1527 out of 2818 companies in the Software industry, placing it in the top 54.2%.
Is Yu-Chen System Technology's Operating Margin % too high?
Yu-Chen System Technology's current Operating Margin % of 4.60% is 33% above median its 10-year median of 3.45. Over the past 10 years, this metric has ranged from a low of 2.61 to a high of 9.50. The Software industry median Operating Margin % is 3.81. Yu-Chen System Technology's value of 4.60% is 20.9% above this industry median. Based on the distribution chart, Yu-Chen System Technology ranks #1527 out of 2818 companies in the Software industry, which is below the industry midpoint. Overall, Yu-Chen System Technology has a GF Score™ of 17/100, reflecting its overall financial health beyond just this single metric.
How does Yu-Chen System Technology's Operating Margin % compare to UBER and SHOP?
According to the Software industry distribution chart, Yu-Chen System Technology ranks #1527 out of 2818 companies for Operating Margin %. This places Yu-Chen System Technology in the lower half of its industry. The industry median Operating Margin % is 3.81. Yu-Chen System Technology's value of 4.60% is 20.9% above this benchmark. Historically, Yu-Chen System Technology's own Operating Margin % has ranged from 2.61 to 9.50 over the past decade. While the company's 10-year median is 3.45 vs. the industry median of 3.81, Yu-Chen System 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 a Software company?
The median Operating Margin % among Software companies is 3.81, based on 2,818 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. Yu-Chen System Technology's current Operating Margin % of 4.60% is 20.9% 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 Yu-Chen System Technology 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. Yu-Chen System Technology's current Operating Margin % is 4.60%, which is 33% above median its own 10-year median of 3.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yu-Chen System Technology stock overvalued right now?
Yu-Chen System Technology (ROCO:7813) has a current Operating Margin % of 4.60%. The current Operating Margin % is 4.60%, which is 33% above median its 10-year median of 3.45 and 20.9% above the Software industry median of 3.81. Yu-Chen System Technology's overall GF Score™ is 17/100 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 Yu-Chen System Technology (ROCO:7813), the current Operating Margin % is 4.60% 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.
Yu-Chen System Technology Corp is engaged in providing services to customers. The company focuses on providing intelligent software solutions to understand customer needs, develops more humane operations, and provides complete and convenient system integration and solutions. The company's products and services include smart monitoring, Vial acid management, factory management, energy management, and others.
17GF Score
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