Contrel Technology CoROCO:8064 50 Operating Margin % is 22.58% as of Dec. 2025, which is 328% above its 10-year median of 5.27. GuruFocus rates ROCO:8064 with a GF Score™ of 50/100 and a GF Value™ of NT$40.33 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 1,022 Semiconductors companies, Contrel Technology Co ranks better than 56.85% on this metric.
Contrel Technology Co (ROCO:8064) 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.
Contrel Technology Co Operating Margin % Related Terms
Contrel Technology Co Operating Margin % Historical Data
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The historical data trend for Contrel 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.
ROCO:8064 vs AMAT, LRCX, KLAC: Operating Margin % Comparison
For the Semiconductor Equipment & Materials subindustry, Contrel 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.
Contrel Technology Co Operating Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Contrel Technology Co's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Contrel Technology Co's Operating Margin % falls into.
Contrel 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.
Contrel 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.
Contrel Technology Co (ROCO:8064) has a Operating Margin % of 22.58% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on Contrel Technology Co and its competitors. This is 328% above median its historical median of 5.27. Over the past decade, Contrel Technology Co's Operating Margin % has ranged from 0.47 to 9.60. According to the industry distribution chart, Contrel Technology Co ranks #441 out of 1022 companies in the Semiconductors industry, placing it in the top 43.2%.
Is Contrel Technology Co's Operating Margin % too high?
Contrel Technology Co's current Operating Margin % of 22.58% is 328% above median its 10-year median of 5.27. Over the past 10 years, this metric has ranged from a low of 0.47 to a high of 9.60. The Semiconductors industry median Operating Margin % is 5.34. Contrel Technology Co's value of 22.58% is 322.8% above this industry median. Based on the distribution chart, Contrel Technology Co ranks #441 out of 1022 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Contrel Technology 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 Contrel Technology Co's Operating Margin % compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Contrel Technology Co ranks #441 out of 1022 companies for Operating Margin %. This puts Contrel Technology Co in the upper half of its industry. The industry median Operating Margin % is 5.34. Contrel Technology Co's value of 22.58% is 322.8% above this benchmark. Historically, Contrel Technology Co's own Operating Margin % has ranged from 0.47 to 9.60 over the past decade. While the company's 10-year median is 5.27 vs. the industry median of 5.34, Contrel 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 Semiconductors company?
The median Operating Margin % among Semiconductors companies is 5.34, based on 1,022 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. Contrel Technology Co's current Operating Margin % of 22.58% is 322.8% 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 Contrel Technology Co and its competitors. For the Semiconductors industry, the median Operating Margin % is 5.34 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Contrel Technology Co's current Operating Margin % is 22.58%, which is 328% above median its own 10-year median of 5.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Contrel Technology Co stock overvalued right now?
Based on GuruFocus' analysis, Contrel Technology Co (ROCO:8064) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$40.33, compared to a current price of NT$138.00 — trading 242.2% above its estimated fair value. The current Operating Margin % is 22.58%, which is 328% above median its 10-year median of 5.27 and 322.8% above the Semiconductors industry median of 5.34. Contrel Technology Co's overall GF Score™ is 50/100 with 2 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 Contrel Technology Co (ROCO:8064), the current Operating Margin % is 22.58% 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 Contrel Technology Co (ROCO:8064) Overvalued in 2026?
Based on GuruFocus' analysis, Contrel Technology Co stock appears to be overvalued.
The current stock price of NT$138.00 is trading 242.2% above its estimated GF Value™ of NT$40.33.
GuruFocus considers Contrel Technology Co to be Significantly Overvalued.
Key valuation signals for ROCO:8064:
Operating Margin %: 22.58% (328% above median its 10-year median of 5.27)
GF Value™: NT$40.33 vs. price of NT$138.00 (242.2% above fair value)
Industry Position: 322.8% above the Semiconductors median (#441 of 1022)
No single metric tells the full story. See the ROCO:8064 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Contrel Technology Co Ltd is engaged in the manufacturing and sale of machinery and equipment. The company operates through three segments: Automation and Testing Equipment, which involves the manufacturing and sale of automation and testing equipment; Vacuum Equipment, which focuses on the manufacturing and sale of vacuum equipment; and Others, which includes the development, manufacturing, and sale of micro-nano process technology products. It generates the majority of its revenue from the Automation and Testing Equipment segment. Geographically, it generates the majority of its revenue from China.
50GF Score
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