Honey Hope Honesty Enterprise Co Ltd had lost money in 50% of the time over the past 12quarters.
Honey Hope Honesty Enterprise Co (ROCO:8043) 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.
Honey Hope Honesty Enterprise Co Operating Margin % Related Terms
Honey Hope Honesty Enterprise Co 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.
Honey Hope Honesty Enterprise Co Operating Margin % Chart
ROCO:8043 vs APH, GLW: Operating Margin % Comparison
For the Electronic Components subindustry, Honey Hope Honesty Enterprise 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.
Honey Hope Honesty Enterprise Co Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Honey Hope Honesty Enterprise Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Honey Hope Honesty Enterprise Co's Operating Margin % falls into.
Honey Hope Honesty Enterprise 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.
* 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.
Honey Hope Honesty Enterprise Co (ROCO:8043) has a Operating Margin % of 3.46% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Honey Hope Honesty Enterprise Co and its competitors. This is 145% above median its historical median of 1.41. According to the industry distribution chart, Honey Hope Honesty Enterprise Co ranks #1588 out of 2471 companies in the Hardware industry, placing it in the top 64.3%.
Is Honey Hope Honesty Enterprise Co's Operating Margin % too high?
Honey Hope Honesty Enterprise Co's current Operating Margin % of 3.46% is 145% above median its 10-year median of 1.41. The Hardware industry median Operating Margin % is 3.82. Honey Hope Honesty Enterprise Co's value of 3.46% is 9.4% below this industry median. Based on the distribution chart, Honey Hope Honesty Enterprise Co ranks #1588 out of 2471 companies in the Hardware industry, which is below the industry midpoint. Overall, Honey Hope Honesty Enterprise Co has a GF Score™ of 50/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Honey Hope Honesty Enterprise Co's Operating Margin % compare to APH and GLW?
According to the Hardware industry distribution chart, Honey Hope Honesty Enterprise Co ranks #1588 out of 2471 companies for Operating Margin %. This places Honey Hope Honesty Enterprise Co in the lower half of its industry. The industry median Operating Margin % is 3.82. Honey Hope Honesty Enterprise Co's value of 3.46% is 9.4% below this benchmark. While the company's 10-year median is 1.41 vs. the industry median of 3.82, Honey Hope Honesty Enterprise Co has consistently been below 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 3.82, based on 2,471 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. Honey Hope Honesty Enterprise Co's current Operating Margin % of 3.46% is 9.4% below 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 Honey Hope Honesty Enterprise Co and its competitors. For the Hardware industry, the median Operating Margin % is 3.82 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Honey Hope Honesty Enterprise Co's current Operating Margin % is 3.46%, which is 145% above median its own 10-year median of 1.41. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Honey Hope Honesty Enterprise Co stock overvalued right now?
Based on GuruFocus' analysis, Honey Hope Honesty Enterprise Co (ROCO:8043) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$29.01, compared to a current price of NT$202.50 — trading 598% above its estimated fair value. The current Operating Margin % is 3.46%, which is 145% above median its 10-year median of 1.41 and 9.4% below the Hardware industry median of 3.82. Honey Hope Honesty Enterprise Co's overall GF Score™ is 50/100 with 5 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 Honey Hope Honesty Enterprise Co (ROCO:8043), the current Operating Margin % is 3.46% 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 Honey Hope Honesty Enterprise Co (ROCO:8043) Overvalued in 2026?
Based on GuruFocus' analysis, Honey Hope Honesty Enterprise Co stock appears to be overvalued.
The current stock price of NT$202.50 is trading 598% above its estimated GF Value™ of NT$29.01.
GuruFocus considers Honey Hope Honesty Enterprise Co to be Significantly Overvalued.
Key valuation signals for ROCO:8043:
Operating Margin %: 3.46% (145% above median its 10-year median of 1.41)
GF Value™: NT$29.01 vs. price of NT$202.50 (598% above fair value)
Industry Position: 9.4% below the Hardware median (#1588 of 2471)
No single metric tells the full story. See the ROCO:8043 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Honey Hope Honesty Enterprise Co Business Description
Honey Hope Honesty Enterprise Co Ltd is engaged in the distribution of professional electronic components. The company focuses in general import and export (excluding futures), trading of electronic parts, agency for the distribution, quotation and bidding of domestic and foreign manufacturers' products in Taiwan and Asia. It distributes multilayer capacitors, chip inductors, chip Pai Yung, High-Frequency Chip Inductors, and others. The company's segments include: Taiwan; and Asia; and Others, of which it derives maximum revenue from Asia and Others.
50GF Score
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