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New Smart Technology CoROCO:7825 -1.20%23 Operating Margin % is 14.41% as of Dec. 2025, which is 19% below its 10-year median of 17.80. GuruFocus rates ROCO:7825 with a GF Score™ of 23/100. The stock has 1 warning sign investors should review. Among 2,824 Software companies, New Smart Technology Co ranks better than 87.75% on this metric.
New Smart Technology Co (ROCO:7825) 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.
New Smart Technology Co Operating Margin % Related Terms
New Smart Technology Co Operating Margin % Historical Data
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The historical data trend for New Smart Technology 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.
New Smart Technology Co Operating Margin % Chart
New Smart Technology Co Annual Data
Trend
Dec23
Dec24
Dec25
Operating Margin %
2.79
17.80
20.12
New Smart Technology Co Semi-Annual Data
Dec23
Jun24
Dec24
Jun25
Dec25
Operating Margin %
0.00
19.92
16.55
25.30
14.41
ROCO:7825 vs MSFT, ORCL, PLTR: Operating Margin % Comparison
For the Software - Infrastructure subindustry, New Smart Technology 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.
New Smart Technology Co Operating Margin % vs Software Industry
For the Software industry and Technology sector, New Smart Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where New Smart Technology Co's Operating Margin % falls into.
New Smart Technology 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.
New Smart Technology 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.
New Smart Technology Co (ROCO:7825) has a Operating Margin % of 14.41% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on New Smart Technology Co and its competitors. This is 19% below median its historical median of 17.80. Over the past decade, New Smart Technology Co's Operating Margin % has ranged from 2.79 to 20.13. According to the industry distribution chart, New Smart Technology Co ranks #346 out of 2824 companies in the Software industry, placing it in the top 12.3%.
Is New Smart Technology Co's Operating Margin % too high?
New Smart Technology Co's current Operating Margin % of 14.41% is 19% below median its 10-year median of 17.80. Over the past 10 years, this metric has ranged from a low of 2.79 to a high of 20.13. The Software industry median Operating Margin % is 3.89. New Smart Technology Co's value of 14.41% is 270.9% above this industry median. Based on the distribution chart, New Smart Technology Co ranks #346 out of 2824 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, New Smart Technology Co has a GF Score™ of 23/100, reflecting its overall financial health beyond just this single metric.
How does New Smart Technology Co's Operating Margin % compare to MSFT and ORCL?
According to the Software industry distribution chart, New Smart Technology Co ranks #346 out of 2824 companies for Operating Margin %. This places New Smart Technology Co in the top 12% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.89. New Smart Technology Co's value of 14.41% is 270.9% above this benchmark. Historically, New Smart Technology Co's own Operating Margin % has ranged from 2.79 to 20.13 over the past decade. While the company's 10-year median is 17.80 vs. the industry median of 3.89, New Smart Technology 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 3.89, based on 2,824 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. New Smart Technology Co's current Operating Margin % of 14.41% is 270.9% 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 New Smart Technology Co and its competitors. For the Software 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. New Smart Technology Co's current Operating Margin % is 14.41%, which is 19% below median its own 10-year median of 17.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is New Smart Technology Co stock overvalued right now?
New Smart Technology Co (ROCO:7825) has a current Operating Margin % of 14.41%. The current Operating Margin % is 14.41%, which is 19% below median its 10-year median of 17.80 and 270.9% above the Software industry median of 3.89. New Smart Technology Co's overall GF Score™ is 23/100 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 New Smart Technology Co (ROCO:7825), the current Operating Margin % is 14.41% 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.
New Smart Technology Co Ltd focuses on researching and developing optical imaging technologies, encompassing optical products, automotive electronics, automation equipment, technical solutions, and consulting services. Its products include AI Algorithms, Image quality test system, Optical image detection system, AA optical active precision alignment system, and Smart Manufacturing System Software.
23GF Score
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